Short-Term Insurance Act, 1998 (Act No. 53 of 1998)

Regulations

Regulations under the Short-term Insurance Act, 1998 (Act No. 53 of 1998)

Part 3 : Limitation on Assets (Section 30)

3.4 Liabilities of asset-holding intermediary
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For the purposes of regulation 3.2, the liabilities of an asset-holding intermediary of a short-term insurer, other than a claim of the short-term insurer against that asset-holding intermediary, shall be deemed to be liabilities of the short-term insurer to the extent determined in accordance with the formula—

A x B/C

in which formula—

Arepresents the aggregate value of those liabilities, plus the value of those of the shares, other than equity shares, in the asset-holding intermediary concerned, which are not owned by the short-term insurer concerned;
Brepresents the value of the equity shares held by the short-term insurer in the asset-holding intermediary;
Crepresents the aggregate value of all equity shares of the asset-holding intermediary.