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(Determination No. 2 of 30/10/2002 is repealed and replaced by Determination No. 2 of 23/08/2010)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Determination 3 – 30/10/2002 – Repealed by Section 15 of Act No. 03 of 2011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Determination 6 – 30/10/2002 (Repealed by Determination 15 dated 30/03/2012)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 – 30/10/2002 and as amended on 12/07/2011 (Maximum Rate of Commission that may be paid by a broker to an insurance agent)
Section 88

For Long Term insurance business:-

  1. The maximum rate of commission that may be paid by an insurer to an insurance agent shall not exceed the percentages given below:-
    1. In respect of a non-single premium business- (that is regular premium business):
      POLICY YEAR MAXIMUM COMMISSION PAYABLE
      1 30 %
      2 20 %
      3 15 %
      4 10 %
      5 5 %
      6 to 10 5 %
      11 – 0 %
    2. In respect of single premium business, three per centum of the single premium for policies with term equal to or less than three years, increasing by half a per centum of the single premium for each year by which the policy term exceeds three years, subject to a maximum of six per centum of the single premium.
  2. The maximum commission that may be paid by an insurer to an insurance broker shall not exceed the percentages given below:-
    1. In the first year, one hundred and thirty five per centum of the maximum first year commission payable to an insurance agent; and
    2. In the second and subsequent years, the maximum commission payable to an insurance agent as per the table shown above.

For General Insurance Business:- 

  1. No insurer shall pay or contract to pay to an insurance agent and no insurance agent shall
    receive or contract to receive, by way of commission or remuneration in any form on any policy of general insurance and effected through an insurance agent an amount exceeding:

    1. where the policy relates to fire, motor, miscellaneous and other non-marine classes of insurance, 15 per centum of premium payable on the policy;
    2. where the policy relates to marine insurance, 10 per centum of premium payable on the policy.
  2. No insurer shall pay or contract to pay to an insurance broker and no insurance broker shall
    receive or contract to receive, by way of commission or remuneration in any form on any policy of general insurance and effected through the broker an amount exceeding:

    1. where the policy relates to fire, motor, miscellaneous and other non-marine classes of insurance, 20 per centum of premium payable on the policy;
    2. where the policy relates to marine insurance, 15 per centum of premium payable on the policy.

Maximum Rate of Commission that may be paid by a broker to an insurance agent. 

For Long Term Insurance Business:-  
The maximum rate of commission that may be paid by a broker to an insurance agent shall not exceed the percentages given below:-

    1. In respect of a non-single premium business- (that is regular premium business):

 

POLICY YEAR MAXIMUM COMMISSION PAYABLE
1 30 %
2 20 %
3 15 %
4 10 %
5 5 %
6 to 10 5 %
11 – 0 %

In respect of single premium business, three per centum of the single premium for policies with term equal to or less than three years, increasing by half a per centum of the single premium for each year by which the policy term exceeds three years, subject to a maximum of six per centum of the single premium.


For General Insurance Business:- 

No broker shall pay or contract to pay to an insurance agent and no insurance agent shall receive or contract to receive, by way of commission or remuneration in any form on any policy of general insurance and effected through an insurance agent an amount exceeding:

  1. where the policy relates to fire, motor, miscellaneous and other non-marine classes of insurance, 15 per centum of premium payable on the policy;
  2. where the policy relates to marine insurance, 10 per centum of premium payable on the policy.
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 – 27/03/2014 as ammended on 13/03/2017 (formats revised to be in line with Solvency Margin (Risk Based Capital) Rules, 2015 and on 6/09/2017 (rearrangement of formats (without altering the contents) and Insertion of Risk Assessment Report) and on 16/05/2018 (formats were altered by incorporating requirements of Direction 16 and Required Certifications of External Auditor on Determination 14 & 15)

Section 47 (1) & 56 of the Regulation of Insurance Industry Act, No. 43 of 2000 – Annual Returns of Insurance Companies

The regulatory reporting formats of the Annual Returns are amended with the implementation of the Solvency Margin (Risk Based Capital) Rules, 2015 which became effective on 1st January 2016 and the said revised formats are attached herewith.

Such returns are required to be furnished to IRCSL within four months after the closure of the financial year, along with statements of holdings issued by the Central Bank of Sri Lanka in respect of investments made in Government Securities.

The first submission shall be made to IRCSL on or before 31st May 2017 for the financial year ended 31st December 2016. However, the subsequent submissions are required to be furnished to IRCSL on or before 30th April each year commencing from financial year ending 31st December 2017.

Annual Returns comprise of the following:

Please note the following on submissions:

The formats numbered 1-7 above are required to be emailed by the Principal Officer of the Company to supervision@ircsl.gov.lkFurther, companies are required to furnish hard copies of following formats/sub formats to IRCSL;

Balance Sheet and Statement of Income
– Form CO-IS (AR)
– Form SCE (AR)
– Form CO-BS (AR)
– Statement of Segmented Data – General Insurance Business
– Form LT-LB-1 (Long Term Insurance)
– Form LT-LB-2 (Long Term Insurance)
– Certification by Competent Persons
Determination 1
Solvency Margin (RBC) – General Insurance
– 1.Form MC-BS(A) AR
– Form MC-BS(L) AR
– Form MC-BS(E) AR
– Form Solvency
– Statement of Technical Reserves – Form GI –TR
– Form Total Available Capital (TAC)
– Form RCR
– Certification by Competent Persons
Reserve Report – General Insurance
Certification by Competent Persons for the Risk Assessment Report
Audited Financial Statements
Other Annual Forms
– Statement of responsibility of Directors
– Certification with regard to compliance with the provisions of the Act by the insurer
Compliance Certification (A) – General Insurance
Compliance Certification (A) – Long Term Insurance
Circular 29
Management Letter
Required Certification of External Auditor on Determination 14 & 15
Determination 15

Determination 15 – 27/03/2014 as amended on 13/03/2017 (formats revised to be in line with Solvency Margin (Risk Based Capital) Rules, 2015 and on 6/09/2017 (rearrangement of formats (without altering the contents) and on 16/05/2018 (formats were altered by incorporating requirements of Direction 16 and Required Certificatios of External Auditor on Determination 14 & 15)

Section 48 (1) of the Regulation of Insurance Industry Act, No. 43 of 2000 – Actuarial Abstract of Insurance Companies

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 (revised to be in line with the amendments made to the Solvency Margin (Risk Based Capital) Rules, 2015).

The abstract is required to be submitted to IRCSL within four months after the closure of the financial year.

The first submission shall be made to IRCSL on or before 31st May 2017 for the financial year ended 31st December 2016. However, the subsequent submissions are required to be furnished to IRCSL on or before 30th April each year commencing from financial year ending 31st December 2017.

Formats are as follows:

Please note the following on submissions:

The formats numbered 1-2 are required to be emailed by the Principal Officer of the Company to supervision@ircsl.gov.lk Further, companies are required to furnish hard copies of following formats/sub formats to IRCSL;

Solvency Margin (RBC) – Long Term Insurance
– Form MC-BS (A)[AR]
– Form MC-BS (L)[AR]
– Form MC-BS (E)[AR]
– Form Solvency
– Form Surrender Value Capital Charge (SVCC)
– Form Total Available Capital (TAC)
– Form RCR
– Certification by Competent Persons
Actuarial Report and Abstract – Long term Insurance
Required Certification of External Auditor on Determination 14 & 15