Insurance Act, 2017 (Act No. 18 of 2017)

Chapter 9 : Resolution

Part 4 : Winding-up

57. Application of Companies Act to winding-up of insurers and controlling companies
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(1) Despite any other law under which an insurer is incorporated, sections 79 to 81 of, and item 9 of Schedule 5 to, the Companies Act shall, subject to this section and with the necessary changes, apply in relation to the winding-up of an insurer or a controlling company, and to the exclusion of any similar provisions under the Co-operatives Act or any other law under which an insurer or controlling company is established or incorporated, and in such application the Prudential Authority is deemed to be a person authorised under the Companies Act to make an application to the court for the winding-up thereof.

 

(2) In the application of sections 79 to 81 of, and item 9 of Schedule 5 to, the Companies Act as provided by subsection (1)—
(a) a reference which relates to the inability of an insurer or a controlling company to pay its debts must be construed as relating also to its inability to comply with the financial soundness requirements of this Act;
(b) a reference to an insurer or a controlling company in this section and section 58 must, for the purposes of the application of sections 79, 80 and 81 of the Companies Act, be construed as a reference to a financially sound insurer or a financially sound controlling company;
(c) in addition to any question whether it is just and equitable that an insurer or a controlling company should be wound-up, there must be considered also the question whether it is in the interest of the policyholders of an insurer or, in the case of a controlling company, the interests of policyholders of the insurers that are part of the insurance group that it should be wound-up;
(d) the references to the Commissioner, Commission, Master or Panel must be construed as a reference also to the Prudential Authority; and
(e) the requirement to give security does not apply where the Prudential Authority makes the application to court.