Determinations.

Determinations

Determination 1

Determination 1 – 01/03/2011 as amended on –

  • 20/10/2011 (amendments made to single investment exposure limits in Shares (b),Corporate Debts (c) and Deposits (d) stated in Table A in Determination # 1);
  • 28/05/2012 (amendments made to the description of asset backed securities for General and Long Term Insurance Business – c (iv) of Table A in Determination # 1);
  • 22/06/2012 (amendments made to items (G) and (H) in Determination # 1); and
  • 01/04/2016 (amendments made to items (c), (f) and (i); inclusion of new items (d) (iii) and (j);deleting item (e) (iii) and note under item (e) of Table A; replacement of item (D) and (I) and removal of the Schedule of Determination #1).

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Determination 2

Determination 2 – 23/08/2010
(Determination No. 2 of 30/10/2002 is repealed and replaced by Determination No. 2 of 23/08/2010)
Section 33 Proviso

Where an insurer or any such person as is referred to in section 33 of the Act is a shareholder, director or employee of any company registered as a broker under the Act as on the date of registration, such insurer or person shall be required to dispose of such shares, or to relinquish such directorships or employment, as the case may be, either within a period of three months from the date of registration or within such period of time from the date of registration, as may be granted by the Board on a case by case basis.

Determination 3

Determination 3 – 30/10/2002 – Repealed by Section 15 of Act No. 03 of 2011
Section 35 (b)

The period for settlement of premia to be set at 60 days from the date on which the premium is payable.

Determination 4

Determination 4 – 30/10/2002
Section 40 (3) (b)

For the purpose of Section 40 (3) (b) the paid-up value of the policy shall be Rs. 5000/-.

Determination 5

Determination 5 – 30/10/2002
Section 47 (2)

Every insurer shall submit a copy of its annual audited accounts to the Board within a period of 6 months from the close of the financial year.

Determination 6

Determination 6 – 30/10/2002 (Repealed by Determination 15 dated 30/03/2012)
Section 48 (1)

Every insurer shall, submit an abstract in terms of Section 48 (1) of the Act to the Board within a period of six months after the close of the financial year.

Determination 7

Determination 7 – 30/10/2002
Section 81 (h)

An applicant desiring to be registered as a general insurance and/or long-term insurance broker shall submit professional indemnity insurance policies for a total value of Rs 1.5 million
from two or more registered insurers.

Determination 8

Determination 8 – 30/10/2002

Section 83 (a)
Section 85 (3) (b)

The maximum amount of the professional indemnity policy of insurance shall be Rs.5 million for the purposes of Sections 83 (a) and 85 (3) (b).

Determination 8 – 08/02/2008 (With effect from 1st January 2009)

Section 83 (a) and Section 85 (3) (b)

(Determination No.8 of 30/10/2002 will be replaced by Determination No.8 of 08/02/2008 with effect from 1st January 2009)

The maximum limit of the Professional Indemnity Policy of insurance shall be Rs. 10 million for the purposes of Sections 83(a) and 85 (3) (b) of the Regulation of Insurance Industry Act No. 43 of 2000.

Determination 9

Determination 9 – 13/08/2018

(Determination No. 9 of 27/02/2018 is repealed and replaced by Determination No. 9 of 13/08/2018)
Section 83 (c) of the Regulation of Insurance Industry Act, No. 43 of 2000 (RII Act) – Renewal of Registration Fee required to be paid by an insurance broker to the Insurance Regulatory Commission of Sri Lanka (Commission).

The renewal of registration fee required to be paid by an insurance broker to the Commission is as follows:

  • If the commission income for the four quarters immediately preceding the due date of submission of the renewal of registration application is less than Rs. 3 million per class of insurance business – Rs. 40,000/- per class of insurance business.
  • If the commission income for the four quarters immediately preceding the due date of submission of the renewal of registration application is between Rs. 3 million and Rs. 10 million per class of insurance business – Rs. 62,500/- per class of insurance business.
  • If the commission income for the four quarters immediately preceding the due date of submission of the renewal of registration application is above Rs. 10 million per class of insurance business – Rs. 62,500/- per class of insurance business + Rs. 2,500 /- for each and every Rs. 1 million.
Determination 10

Determination 10 – The amended determination issued on 12/07/2011 is replaced with the following new Determination #10 issued on 06/12/2021 – Section 88

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Determination 11

Determination 11 – 30/04/2013

(Determination No. 11 of 30.10.2002 as amended on 25.05.2009 is repealed and replaced as follows by Determination No. 11 of 30.04.2013)

For the purposes of section 98 of the Regulation of Insurance Industry Act, No. 43 of 2000 the maximum sum assured for long term insurance business is Rs 100,000,000/= (rupees one hundred million) and for general insurance business
Rs. 200,000,000,000/= (rupees two hundred billion).

Determination 12

Determination 12 – 31/05/2011 and as amended on 30/04/2013 (Compliance Certifications) and on 11/03/2016 (to be in line with the Solvency Margin (Risk Based Capital) Rules, 2015 and on 11/07/2018 (altered to incorporate requirements of Direction 16 and other amendments.)

Section 49 (b) of the Regulation of Insurance Industry Act, No. 43 of 2000 – Quarterly Returns of Insurers

Every insurer shall, for every quarter commencing from the first day of April 2018, furnish to the Commission, its quarterly returns in accordance with the revised Quarterly Returns Formats as specified below:

1. (a). Balance Sheet and Income Statement – General Insurance
     (b). Certification on Balance Sheet and Income Statement – General Insurance

2. (a). Balance Sheet and Income Statement – Long Term Insurance
    (b). Certification on Balance Sheet and Income Statement – Long Term Insurance

3. (a). Determination 1 – General Insurance
     (b). Certification on Determination 1 – General Insurance

4. (a). Determination 1 – Long Term Insurance
    (b). Certification on Determination 1 – Long Term Insurance

5. (a). Solvency Margin (RBC) – General Insurance
    (b). Certification on Solvency Margin (RBC) – General Insurance

6. (a). Solvency Margin (RBC) – Long Term Insurance
    (b). Certification on Solvency Margin (RBC) – Long Term Insurance

7. RBC Quarterly Report – General Insurance

8. RBC Quarterly Report – Long Term Insurance

9. Compliance Certification (A)

10. Compliance Certification (B)

Information required in formats numbered 1(a), 2(a), 3(a), 4(a), 5(a), 6(a), 7 and 8 above are required to be emailed by the Principal Officer of the Company to supervision@ircsl.gov.lk within forty-five days after the end of each quarter.

Information required in formats numbered 1(b), 2(b), 3(b), 4(b), 5(b), 6(b), 7,8,9 and 10 above are required to be furnished to the Commission in hard copy format within forty-five days from end of each quarter.

Monthly Reporting

Insurers who are required to report on a monthly basis are required to comply with the above from the month ended 31st July 2018 and furnish to the Commission within such period of time as directed.

Determination 13

Determination 13 – 31/05/2011

Section 33 B (1) of the Regulation of Insurance Industry Act, No. 43 of 2000 – Notice for giving information regarding a person sought to be appointed, elected or nominated as a director of an Insurer

Every insurer seeking to appoint, elect or nominate a director is required to submit to the Insurance Board of Sri Lanka (IRCSL) information requested in the attached notice in terms of section 33 B (1) of the Regulation of Insurance Industry Act No. 43 of 2000, along with the Form required to be filed with the Registrar General of Companies, prior to making of such appointment, nomination or election, as the case may be, and obtain the IRCSL’s approval for the same.

Click here to download the Form and the Affidavit

Determination 14

Determination 14 – Revised on 31/12/2021    

Annual Returns of Insurance Companies 

In terms of Sections 26 (1), 47 (1) & 56 of the Regulation of Insurance Industry Act, No. 43 of 2000  

The regulatory reporting formats of the Annual Returns are required to be furnished to the IRCSL within four months after the closure of the financial year (30th April each year), along with statements of holdings issued by the Central Bank of Sri Lanka in respect of investments made in Government Securities. 

Annual Returns comprise of the following: 

– For General Insurance Companies 

1. Balance Sheet and Statement of Income – General Insurance

2. Determination 1 – General Insurance

3. Solvency Margin (RBC) – General Insurance

4. Reserve Report – General Insurance

5. Certification – General Insurance

6. Compliance Certificate (A) – General Insurance

– For Long Term Insurance Companies

7. Balance Sheet and Statement of Income – Long Term Insurance

8. Determination 1 – Long Term Insurance

9. Solvency Margin (RBC) – Long Term Insurance

10. Certification – Long Term Insurance

11. Compliance Certificate (A) – Long Term Insurance

– For Both General and Long Term Insurance Companies

12. Compliance Certificate (B) – General Insurance/Long Term Insurance

13. Risk Assessment Report

14. Audited Financial Statements

15. Other Annual Forms

16. Circular 29

17. Management Letter

18. Required Certification of External Auditor on Determination 14 & 15

Please note the following on submissions: 

All formats mentioned above are required to be emailed by the Principal Officer of the company to supervision@ircsl.gov.lk. Formats numbered 1, 2, 3, 7, 8 and 9 should be furnished in MS Excel formats.

Determination 15

Determination 15 – Revised on 31/12/2021

Actuarial Abstract of Insurance Companies 

In terms of Section 48 (1) of the Regulation of Insurance Industry Act, No. 43 of 2000  

An insurance company carrying on long term insurance business shall, cause an abstract to be made by an actuary for every financial year commencing from the first day of January 2016 according to the revised formats attached below. 

The abstract is required to be submitted to the IRCSL within four months after the closure of the financial year (30th April each year). 

Formats are as follows: 

1. Actuarial Report and Abstract – Long Term Insurance

Please note the following on submissions: 

Above format should be emailed by the Principal Officer of the company to supervision@ircsl.gov.lk