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General and Reinsurance Business Insurance
In the case of insurers carrying on general insurance or reinsurance business, the value of its admitted assets shall exceed the amount of its admitted liabilities by not less US$ 200,000 or 15% of the premium income net of reinsurance premiums in the preceding financial year, whichever is higher.
|Class of Insurance Business||Amount|
|General Insurance Business||US$ 200,000 or equivalent in another currency|
|Long Term Insurance Business||US$ 250,000 or equivalent in another currency|
|Reinsurance Business||US$ 300,000 or equivalent in another currency|
|Captive Insurance Business||US$ l00,000 or equivalent in another currency|
As per the Regulations made under the Financial Services Development Act, 2001, no insurer shall carry on insurance business unless its stated capital is not less than the amount set out below in respect of the corresponding class of insurance business.
"Life Assurance Business" means the business of undertaking liability under contracts upon human life or contracts to pay annuities on human life, but excludes permanent health insurance business and personal accident insurance business.
"Pension Business" means the business of effecting and carrying on of:
(a) contracts to manage pension funds or investment of pension funds;
(b) contracts of the kind mentioned in paragraph (a) that are combined with the contract of insurance covering either conservation of capital or payment of a minimum interest; or
(c) contracts on a group basis to provide pensions during the lifetime of employees as from their retirement and to their dependants should they die in service or on pension.