Insurance (Amendment) Bill

This Act is the Insurance (Amendment) Act 2024.

In the Insurance Act 1966, after section 33, insert —“Minister’s approval of section 26 or 27 application required where licensed insurer is co-operative society, etc.33A.—(1) This section applies to an application for an approval mentioned in section 26(1) or 27(1) or (2) (called in this section a relevant application), where —(a)the licensed insurer that is the subject of the application is a co-operative society;(b)the licensed insurer that is the subject of the application has acquired at any time (but not earlier than 5 years before the date of commencement of the Insurance (Amendment) Act 2024) the principal business or undertaking of a co‑operative society; or(c)a co-operative society is a substantial shareholder of, or has obtained effective control of, the licensed insurer that is the subject of the application.(2) The Authority must not approve a relevant application except with the Minister’s approval.(3) The Minister (called in this subsection the relevant Minister) may, after consulting the Minister charged with the responsibility for the Co‑operative Societies Act 1979, withhold his or her approval in subsection (2) if the relevant Minister considers that it is in the public interest to do so.(4) Section 31 does not apply to the Authority not approving a relevant application on the basis that the Minister has withheld his or her approval in subsection (2).(5) The Minister may, in giving his or her approval in subsection (2), impose such conditions as the Minister may determine.(6) The Minister may at any time add to, vary or revoke any condition imposed under subsection (5).(7) Any condition imposed under subsection (5) (including a condition added or varied under subsection (6)) has effect despite any written law or anything contained in the memorandum or articles of association or other constitutional document of the licensed insurer.(8) Any person who fails to comply with any condition imposed under subsection (5) (including a condition added or varied under subsection (6)) shall be guilty of an offence and shall be liable on conviction —(a)in the case of an individual, to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $12,500 for every day or part of a day during which the offence continues after conviction; or(b)in any other case, to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction.(9) This section applies also to a relevant application received by the Authority before the date of commencement of the Insurance (Amendment) Act 2024, that is still pending as of that date.(10) In subsection (1)(c), whether a co‑operative society has obtained effective control of a licensed insurer is to be determined in accordance with section 26(7).”.

The Authority must not approve a relevant application except with the Minister’s approval.

The Minister (called in this subsection the relevant Minister) may, after consulting the Minister charged with the responsibility for the Co‑operative Societies Act 1979, withhold his or her approval in subsection (2) if the relevant Minister considers that it is in the public interest to do so.

Section 31 does not apply to the Authority not approving a relevant application on the basis that the Minister has withheld his or her approval in subsection (2).

The Minister may, in giving his or her approval in subsection (2), impose such conditions as the Minister may determine.

The Minister may at any time add to, vary or revoke any condition imposed under subsection (5).

Any condition imposed under subsection (5) (including a condition added or varied under subsection (6)) has effect despite any written law or anything contained in the memorandum or articles of association or other constitutional document of the licensed insurer.

Any person who fails to comply with any condition imposed under subsection (5) (including a condition added or varied under subsection (6)) shall be guilty of an offence and shall be liable on conviction —(a)in the case of an individual, to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $12,500 for every day or part of a day during which the offence continues after conviction; or(b)in any other case, to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction.

This section applies also to a relevant application received by the Authority before the date of commencement of the Insurance (Amendment) Act 2024, that is still pending as of that date.

In subsection (1)(c), whether a co‑operative society has obtained effective control of a licensed insurer is to be determined in accordance with section 26(7).”.

This section applies to an application for an approval mentioned in section 26(1) or 27(1) or (2) (called in this section a relevant application), where —(a)the licensed insurer that is the subject of the application is a co-operative society;(b)the licensed insurer that is the subject of the application has acquired at any time (but not earlier than 5 years before the date of commencement of the Insurance (Amendment) Act 2024) the principal business or undertaking of a co‑operative society; or(c)a co-operative society is a substantial shareholder of, or has obtained effective control of, the licensed insurer that is the subject of the application.

In the Insurance Act 1966, in the following provisions, replace “The Authority” with “Subject to section 33A, the Authority”: Section 26(2) Section 27(3).