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InsuranceBill,2020

ArrangementofSectionsSection:

PARTI–OBJECTIVEANDAPPLICATION1. Objective.2. Application.

PARTII–CLASSIFICATION3. Classificationofinsurancebusiness.4. Restrictionontheuseoftheword“Insurance”or“Underwriter”.

PARTIII–LICENSINGANDOPERATIONOFINSURER5. ConditionsforLicensing.6. Specialisation.7. Rejectionofapplication.8. CancellationofLicence.9. Operatinganunlicensedinsurancebusiness.10. Appointmentandchangeofprincipalofficers.11. DisqualificationforAppointmentasPrincipalOfficer.12. Principalplaceofbusiness.

PARTIV–SHARECAPITAL13. ShareCapital.14. ShareCapitaltobedepositedwiththeCentralBankofNigeria.

PARTV–OPERATIONOFINSURANCECOMPANY15. Deliveryofpolicydocument.16. Approvalofnewinsuranceproducts.17. Recordstobekeptbyaninsurer.18. Provisionsforunexpiredriskandclaims.19. Contingencyreserves.20. Reserveforlifeinsurancebusiness.21. ReserveforRe-insurers.22. Solvencymargin.23. RiskBasedCapital.24. InvestmentofInsuranceFunds.25. Penaltyinrelationtoinvestments.26. Statementofaccounts,Etc.27. Lifeinsurancereturns.28. Non-lifeinsurancereturns.29. Audits.30. TerminationofAuditor’sappointmentbyInsurer.

PARTVI–INSURANCEINTERMEDIARIES31. InsuranceAgents.32. DutiesofInsurersandAgents.33. LicensingofInsuranceBrokers.34. Re-insuranceBroking.35. RenewalofLicence.36. Cancellationoflicenceofaninsuranceorreinsurancebroker.37. Requirementastoindemnitycover,staff,etc.38. Recordsoftransactions,etc.39. SuspensionofLicence.40. Auditofinsurancebroker.

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41. Insurancebrokertoestablishclients’account.42. LicensingofLossAdjusters.43. RenewalofLicenceoflossadjusters.44. CancellationofLicenceofalossadjuster.45. Recordstobekeptbylossadjuster.46. Attendancetoclaimsbyforeignlossadjusters.

PARTVII–ACTUARY47. PowersoftheCommissiontoappointanActuary.48. PowersofActuary.49. ObligationsofActuary.50. Annualactuarialinvestigations.51. Actuarialinvestigationandreport.

PARTVIII–PREMIUMSANDCOMMISSIONS52. Paymentofinsurancepremium.53. Paymentofpremiumthroughabroker.54. Paymentofinsurancecommission.55. Prohibitionofcertaindiscountsandrebates

PARTIX-INSURANCECONTRACTS:DISCLOSURE,CONDITIONSANDWARRANTIES56. Proposalform.57. Breachofmaterialandrelevantterms.58. Insurableinterest.59. Policydocumenttospecifyinsuredorevent.60. Limitationonamountreceivable.61. Rightofassigneetosue.62. Noticeofassignment.63. Acknowledgementofnoticeofassignment.64. Provisionsinapplicabletomarineinsurance.

PARTX–COMPULSORYINSURANCE65. Insuranceofbuildingunderconstruction.66. Insuranceofpublicbuildings.67. Applicationofproceedofclaimsonhousesdestroyedbyfire.68. ProfessionalindemnitybyHealthCareProviders.69. Civilaviationinsurance.70. Insuranceofimportofgoodsandmerchandise.71. Ad-hoccommitteeoncompulsoryinsurancebusiness.

PARTXI–MOTORVEHICLES(THIRDPARTY)INSURANCE72. Insuranceagainstthirdpartyrisks.73. Limitationoftimeforproceedings.74. Exemptions.75. Requirementsinrespectofpoliciesandcertificateofinsurance.76. Certainconditionsinpoliciestobeofnoeffect.77. Avoidanceofrestrictionsonthirdpartypolicies.78. Dutyofinsurerstosatisfyjudgments.79. Rightsofthirdpartiesagainstinsurers.80. Dutytogiveinformationtothirdparties.81. Certainsettlementsbetweeninsurerandinsuredtobeofnoeffect.82. Bankruptcyofinsuredpersonnottoaffectcertainclaims.83. Furtherrightofthirdpartiesagainstinsurers.84. Dutytosurrendercertificateoncancellationofpolicy.85. Certificatestobeproduced.86. Dutyofowner.

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87. Falsestatements,forging,etc.certificates.88. InterpretationofthisPart.

PARTXII–ECOWASBROWNCARDSCHEME89. EstablishmentoftheNationalBureauforthepurposeoftheProtocolontheECOWASBrownCard

Scheme.90. SavingsandtransitionalprovisionpertainingtotheBureau.91. AppointmentofstaffbytheBureau.92. RoadSafetyandAccidentVictimsCompensationFund.93. RoadSafetyandAccidentVictimsCompensationCommittee.94. GeneralpenaltyunderthisPart.95. Policereportinmotoraccidentcases.

PARTXIII–AMALGAMATIONANDTRANSFERS96. ProcedureforAmalgamation.97. PostAmalgamationReturns.

PARTXIV–WINDINGUP98. Appointmentofreceiverorprovisionalliquidator.99. Petitionforwindingupinothercases.100. Prohibitionofvoluntarywindingup.101. ContinuationoflifeinsurancebusinessofInsurerinLiquidation.102. ExemptionofInsuranceFundsfromLiquidationProcessorGarnisheeProceedings.

PARTXV–MARINEINSURANCE103. Marineinsurancedefined.104. Mixedseaandlandrisks.105. Marineadventureandmaritimeperils.106. Avoidanceofwageringorgamingcontracts.107. Insurableinterest.108. Wheninterestattaches.109. Defeasibleorcontingentinterest.110. Partialinterest.111. Reinsurance.112. Bottomry.113. Master’sandseamen’swages.114. Advancefreight.115. Chargesofinsurance.116. QuantumofInterest.117. Assignmentofinterest.118. Measureofinsurablevalue.119. Thedutyoffairpresentation.120. Knowledgeofinsured.121. Knowledgeofinsurer.122. Knowledge:general.123. Supplementary.124. Remediesforbreach.125. Goodfaith.126. Representationspendingnegotiationofcontract,127. Whencontractdeemedtobeconcluded.128. Contracttobeembodiedinapolicy.129. Nameofinsuredtobespecifiedinpolicydocument.130. Signatureofinsurer.131. Designationofsubjectmatter.132. Floatingpolicybyshiporships.

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133. Doubleinsurance.134. Breachofwarranty.135. Expresswarranties.136. Warrantyofneutrality.137. Noimpliedwarrantyofnationality.138. Warrantyofgoodsafety.139. Warrantyofseaworthinessofship.140. Noimpliedwarrantythatgoodsareseaworthy.141. Warrantyoflegality.142. Impliedconditionastocommencementofrisk.143. Alterationofportofdeparture.144. Sailingfordifferentdestination.145. Changeofvoyage.146. Deviation.147. Severalportsofdischarge.148. Delayinvoyage.149. Excusesfordeviationordelay.150. Whenandhowpolicyisassignable.151. Assuredwhohasnointerestcannotassign.152. Effectofreceiptonpolicy.153. Includedandexcludedlosses.154. Totalandpartialloss.155. Actualtotalloss.156. Missingship.157. Effectoftransshipment,etc.158. Constructivetotallossdefined.159. Effectofconstructivetotalloss.160. Noticeofabandonment.161. Effectofabandonment.162. Particularaverageloss.163. Salvagecharges.164. Generalaverageloss.165. Extentofliabilityofinsurerforloss.166. Totalloss.167. Partiallossofaship.168. Partiallossoffreight.169. Partiallossofgoods,merchandise,etc.170. Apportionmentofvaluation.171. Generalaveragecontributionandsalvagecharges.172. Liabilitiestothirdparties.173. Generalprovisionsastomeasureofindemnity.174. Particularaveragewarranties.175. Successivelosses.176. Suingandlabouringclause.177. Rightofsubrogation.178. Rightofcontribution.179. Effectofunderinsurance.180. Enforcementofreturn.181. Returnbyagreement.182. Returnforfailureofconsideration.183. Ratificationbyassured.

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184. Impliedobligationsvariedbyagreementorusage.185. Slipasevidence.186. Gamblingonlossbymaritimeperilsprohibited.187. InterpretationofthisPart.

PARTXVI–MISCELLANEOUS188. Contractwithforeigninsurerandreinsurer.189. Contractsofgeneralinsurance-entitlementsofthirdpartybeneficiaries.190. Internalcontrolsystemofinsuranceoperators.191. Codeofconductandcorporategovernance.192. Dutyofinsurerstoreportfraudulentinsuranceconduct.193. Advertisement.194. Misleadingstatements,etc.195. ClaimsSettlement.196. RestrictiononloanstoDirectors,etc.197. SecurityandInsuranceDevelopmentFund.198. OffencesastoReturns.199. Productionofdocuments.200. Serviceofprocess.201. PenaltyforNon-compliance.202. Fees.203. ApplicationoftheprovisionsoftheCompaniesandAlliedMattersAct.204. Compoundingofoffences.205. Recoveryofsumsinvolvedinthecommissionofoffences.206. Offencesbybodycorporate.207. Jurisdictionandprosecution.208. Obstructionofpublicofficers.209. Misrepresentationbypublicofficers.210. ProtectionagainstAdverseClaims.211. PowertomakeRegulations.212. RepealandSavingsprovision.213. Interpretation.214. Shorttitle.

SCHEDULESFirstScheduleSecondSchedule

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ABILLFOR

ANACTTOREPEALANDCONSOLIDATEINSURANCELAWSANDOTHERRELATEDMATTERS

Hon.DarlingtonNwokocha

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[ ]

BEITENACTEDbytheNationalAssemblyoftheFederalRepublicofNigeriaasfollows–

PARTI–OBJECTIVEANDAPPLICATION

1._ (1) The objective of this Bill is to regulate the insurance industry in order to

develop the insurance sector, to protect the interest of policyholders and prospective

policyholdersunder insurancepolicies inways that are consistentwith the continued

developmentofaviable,competitiveandinnovativeinsuranceindustry.

(2) This Bill, the regulations and other regulatory instruments issued by the

Commission pursuant to this Bill, shall be to achieve the objective referred to in

subsection(1)ofthissection,by–

(a) determining who carries on insurance business in Nigeria and requiring

insuranceoperators, thedirectors and themanagementof insuranceoperators to

meetcertainsuitabilityrequirements;

(b) imposing on insurance operators, requirements to promote prudent

management,goodbusinesspracticesandgoodcorporategovernance;and

(c)providingforaneffectivemechanismforsettlementofinsurancedisputes.

2._(1)ExceptasmayotherwisebeprovidedbythisBill,theprovisionsofthisBill

shall apply to regulation and supervision of all insurance business, derivatives of

insurancebusinessandinsuranceoperatorsinNigeria.

(2) This Act applies to all insurance business and insurers, other than insurance

businesscarriedonorbyinsurersofthefollowingdescription–

(a)afriendlysocietythatisanassociationofpersonsestablishedwithnosharefor

the purposes of aiding its members or their dependents where such association

doesnotemployanypersonwhosemainoccupationisthe–

(i)canvassingofotherpersonstobecomemembersoftheassociation,or

(ii) collecting of contributions or subscriptions towards the funds of the

associationfromitsmembers;or

(b)acompanyoranyotherbody(whethercorporateorunincorporated)orperson

whose business is established outside Nigeria, engaged solely in reinsurance

Commencement.

Objective.

Application.

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transactionswithaninsurerauthorizedorpursuanttotheprovisionsofthisBillto

carryonanyclassofinsurancebusiness,butnototherwisehowever.

PARTII–CLASSIFICATION

3._(1)ThereshallbeforthepurposeofthisBilltwomaincategoriesof insurance

business,thatis–

(a)lifeinsurancebusiness;and

(b)non-lifeinsurancebusiness.

(2)Inthecaseoflifeinsurancebusiness,thereshallbe4classes,thatis–

(a)individuallifeinsurancebusiness;

(b)grouplifeinsuranceandpensionbusiness;

(c)annuity;and

(d)healthinsurancebusiness.

(3)Inthecaseofnon-lifeinsurancebusiness,theseshallbe8classes,thatis–

(a)fireinsurancebusiness;

(b)generalaccidentinsurancebusiness;

(c)motorvehicleinsurancebusiness;

(d)marineandaviationinsurancebusiness;

(e)oilandgasinsurancebusiness;

(f)engineeringinsurancebusiness;

(g)bondscreditguaranteeandsuretyshipinsurancebusiness;and

(h)miscellaneousinsurancebusiness.

(4)ForthepurposesofthisBill–

(a)anypartofaninsurancebusinessmaybetreatedaspartofaparticularclassof

insurancebusiness;and

(b)reinsuranceofliabilitiesunderaninsurancepolicyshallbetreatedasinsurance

businessoftheclasstowhichsuchpolicywouldhavebelongedifithasbeenissued

bythereinsurer.

(5)SubjecttothisBill,aninsurermaybeauthorizedtotransactanynewcategoryof

miscellaneous insurance business if he shows evidence of adequate reinsurance

arrangement in respect of that category of insurance business and requisite capital

where necessary and other conditions as may be required from time to time by the

Commission.

(6) The Commission may by Rules, Regulations or Guidelines classify insurance

businessasitmaydeterminefromtimetotime.

Classificationofinsurancebusiness.

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4._ (1) A person other than an insurer, insurance broker, loss adjuster licensed

underthisBilloraninsurer’sagentdulyappointedshallnotusetheword“insurer”or

anyderivativethereofaspartofhisbusinessnameorfordescribingthenatureorobject

ofsuchbusiness.

(2) A person, other than an insurer licensed under this Bill or a duly appointed

insuranceagentshallnotusetheword“underwriter”oranyderivativethereofaspartof

hisbusinessnameorfordescribingthenatureorobjectofsuchbusiness.

(3)Apersonwhocontravenestheprovisionsofsubsection(1)or(2)ofthissection

commits anoffenceand is liableon conviction to a fineofN2,500.00 for everydayor

partthereofinwhichthenameordescriptionissoused.

PARTIII–LICENSINGANDOPERATIONOFINSURER

5._ (1) A person shall not commence or carry on insurance, or reinsurance or

related business in Nigeria unless licensed by the Commission as an insurer or a

reinsurerunderthisBill.

(2)AnapplicationforregistrationasaninsurershallbemadetotheCommissionin

theprescribed formandaccompaniedby suchotherdocumentsor informationas the

Commissionmayfromtimetotimerequire.

(3)ApersonshallnotbelicencedasaninsurerorareinsurerunderthisBillexcept

–

(a)incorporatedasalimitedliabilitycompanyundertherelevantlawinNigeriaor

establishedpursuanttoanyotherlaworenactmentinNigeria;

(b)thecompanyhasandmaintains,whilecarryingonthebusiness,theprescribed

minimumpaid-upsharecapital;

(c) the companyhaspaidandmaintained such statutorydepositwith theCentral

BankofNigeriaasmaybeprescribedbytheCommissionfromtimetotime;and

(d)thecompanyhasmetallotherrequirementsspecifiedbytheCommissionfrom

timetotime.

(4)WheretheCommissionissatisfiedthatallrequirementsforlicencinghavebeen

met,itshalllicencethecompany.

6._ (1) As from the commencement of this Bill, the Commission shall licence an

insureronlyinthecategoryof–

(a)lifeinsurance;or

(b)non-lifeinsurance.

(2)Notwithstandingtheprovisionsofsubsection(1)ofthissection,acompany–

Restrictionontheuseoftheword“Insurance”or“Underwriter”.

Conditionsforlicencing.

Specialisation.

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(a) licenced to operate a life insurance businessmay own or acquire shares in a

non-lifeinsurancecompany;and

(b)licencedtooperateanon-lifeinsurancebusinessmayownoracquiresharesina

lifeinsurancecompany.

(3)TheCommissionmayissueacombinedorcompositelifeandnon-lifelicenceto

areinsurer.

(4) Existing composite insurance companies shall within 24 months of the

commencementofthisBillcomplywiththeprovisionsofsubsection(1)ofthissection.

7._(1)TheCommissionmayrefusetolicenceacompanypursuanttoanapplication

madeundersection5ofthisBillwhereitissatisfiedthatthe–

(a) information contained in the application for licence is false in any material

particular;

(b)applicationdoesnotmeettherequirementsprescribedbytheCommissionfora

licence;or

(c) licence of the applicant had earlier been revoked or cancelled by the

CommissionunderanyoftheprovisionsofthisBill.

(2)WheretheCommissionrefusesto licenceanapplicant, itshall forthwithnotify

theapplicantintheprescribedformstatingthereasonsforsuchrefusal.

(3)Notwithstanding the provisions of subsections (1) and (2) of this section, the

applicant on satisfying the condition stipulated in the notice, may reapply to the

Commission.

(4)AnaggrievedapplicantmayappealtotheBoardwithin30daysofreceivingthe

noticeofrefusal.

(5) The Board shall within 90 days of receiving an appeal give its decision on

whether to allowor reject the appeal andmay impose such conditions as it deems fit

whereitallowstheappeal.

8._(1)WheretheCommissionissatisfiedthatalicencedinsurerorreinsurer–

(a) is not conducting insurance business in accordance with sound insurance

principles;

(b)hasfailedtosatisfythemarginofsolvencyasprescribedbytheCommission;

(c)hasceasedtocarryonthebusinessofinsuranceforwhichitwasregisteredfor

atleastoneyearinNigeria;

(d)hasappliedinwritingforthecancellationofitslicenceasaninsurer;

(e) has a judgment obtained against it from a Court of competent jurisdiction in

Rejectionofapplication.

Cancellationoflicence.

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Nigeria which remains unsatisfied for 90 days and there is no appeal pending

againstthejudgment;

(f) is carrying on simultaneously the insurance businesswith any other business

whichisdetrimentaltoitsinsurancebusiness;

(g) subject toPartXIII of thisBill, the insurerhas transferred to or amalgamated

withthebusinessofanyotherinsurer;

(h)hasrefusedtosubmittoanexaminationofitsbooksasprovidedforinthisBill;

(i)has failed tocomplywith theprovisionsof thisBill relating to filingof returns

withtheCommission;

(j) has failed to maintain adequate reinsurance arrangements and treaties in

respect of the category of insurance business which the insurer or reinsurer is

authorizedtotransact;

(k)lacksthenecessaryexpertisebyvirtueofasubstantialreductioninthenumber

ofitsqualifiedemployees;

(l)hasanet assetbelow theminimumpaid-upcapital andcapital injectionshave

notbeenmadewithinthetimestipulatedbytheCommission;

(m)hasnotlessthan5complaintsoffailuretopayclaimspromptlymadeagainstit

whichtheCommissionhasreceivedandverified;

(n)hasfailedtosetupthespecialreservesasprescribedbytheCommission;

(o)actsinanymanner,withouttheapprovaloftheCommission,incaseswherethis

Billrequiressuchapproval;

(p)hasbeenwound-upordissolvedorhasgoneintoliquidation;or

(q)hasfailedtomaintainreservesasrequiredunderthisBill,

theCommissionshallgivenotice inwritingtothe insurerof its intentiontocancel the

licenceoftheinsurer.

(2)TheCommissionshall in thenoticeof its intention tocancel the licenceof the

insurer give the insurer a specified period of time, as it may deem necessary, within

which to remedy any of the defects or breaches identified in subsection (1) of this

sectionwherethedefectsorbreachesarecapableofbeingremedied.

(3)Wherethedefectorbreachisnotcapableofbeingremediedorwhereitisnot

remedied within the time specified by the Commission in the notice given, the

Commissionshallproceedforthwithtocancelthelicenceoftheinsurer.

(4)Wherethelicenceofaninsureriscancelled–

(a)theinsurershallforthwithdiscontinuetoacceptanynewbusiness;and

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(b)theCommissionmay,inallcases,actasareceiverfromthedateofcancellation

inaccordancewiththeprovisionsofthisBill,ormayappointanypersontoacton

itsbehalf.

(5)AninsurerwhoselicencehasbeencancelledbytheCommissionmaywithin30

daysafterthenoticeoftheCommission’scancellationofitslicence,appealtotheBoard

inwritingsettingoutthegroundsofappeal.

(6) The Board shall within 90 days of receiving the appeal give its decision on

whethertoalloworrejecttheappealandmayimposesuchconditionsasitmaydeemfit.

(7) Where an appeal is disallowed, the Commission shall cause a notice to be

published in the Gazette or in such other manner to ensure publicity as it may

determine.

9._Apersonwhotransactsanyinsurancebusinesswithoutbeinglicencedforthat

purposeunderthisBillcommitsanoffenceandisliableonconviction,inthecaseof–

(a)a company, firmorother combinationofpersons, eachprincipalofficerof the

company, firm or other combination of persons responsible to a fine of

N5,000,000.00ortoimprisonmentforatermof2years;or

(b) an individual, to a fine of N1,000,000.00 or to imprisonment for a term of 2

years.

10._(1)Aninsurershallnotappointorchangeadirector,chiefexecutiveofficeror

principalofficerexceptwiththeapprovaloftheCommission.

(2)An insurer shallnotify theCommissionof any changedue todeath,dismissal,

redundancyorresignationofitsdirector,chiefexecutiveofficerorprincipalofficer.

(3)Aninsurerwhocontravenestheprovisionofsubsection(1)ofthissectionshall

beliabletosuchpenaltyasmaybeprescribedinregulationsissuedbytheCommission

fromtimetotime.

(4)The term“principalofficer” in this sectionshallbeasmaybedefinedby the

Commissioninregulationsmadefromtimetotime.

11._ (1)An insurer shallnotappointorhave in its employmenta chief executive,

director,orprincipalofficerifsuchaperson–

(a) is, or becomes of unsound mind, or as a result of ill health, is incapable of

carryingouthisduties;

(b)isconvictedofanoffenceinvolvingdishonestyorfraud;

(c)isguiltyofseriousmisconductinrelationtohisduties;

(d)inthecaseofapersonwithprofessionalqualification,hasbeendisqualifiedor

Operatinganunlicencedinsurancebusiness.

Appointmentandchangeof

principalofficers.

Disqualificationforappointmentasprincipalofficer.

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suspendedfrompracticinghisprofessioninNigeriabytheorderofanycompetent

authoritymadeinrespectofsuchaperson;

(e)hasbeenadirectoroforhasbeendirectlyconcernedwiththemanagementof

aninsuranceorfinancialinstitutionwhoselicencetooperatehasbeencancelledor

whosebusinesshasbeenwound-upongrounds specified inSections408 (d)and

409 of the Companies andAlliedMatters Act, Cap C20 Laws of the Federation of

Nigeria,2004;

(f) isapersonwhoseappointmentwithan insuranceora financial institutionhas

beenterminatedordismissedforreasonoffraudordishonesty;or

(g) has been convicted by a court or tribunal of an offence of criminal

misappropriationoffunds,breachoftrustorcheating.

(2)Aninsurershallnotappointasadirectororhaveinitsemployment,apartner,

directororemployeeinafirmofinsurancebrokersorlossadjusters;or

(3) An insurer who contravenes the provisions of this section is liable to such

penaltiesasshallbeprescribedbytheCommissionfromtimetotime.

12._(1)AninsurerregisteredunderthisBillshallhaveaprincipalofficeinNigeria

whereallcommunicationsandnoticesaretobeaddressed.

(2)TheCommissionshallbenotifiedinwritingwithin21daysofthelocationofthe

principalofficeoranysubsequentchangethereof.

(3) A postal box address or a privatemail bag is insufficient for the purposes of

subsection(1)ofthissection.

(4)Theinclusionofanaddressofaninsurerorreinsurerinitsapplicationorinits

annualreturnsoranyotherreturnto theCommissionshallnotbetakentosatisfy the

obligationimposedbythissection.

(5)Where an insurer contravenes the provisions of this section, the insurer and

everydirectorshallbeliabletoapenaltyofasumtobeprescribedbytheCommission

foreverydayduringwhichtheinsurersocarriesonbusiness.

PARTIV–SHARECAPITAL

13._(1)NoinsurershallcarryoninsurancebusinessinNigeriaunlesstheinsurer

hasandmaintained,while carryingon thatbusiness, apaid-up share capital of, in the

caseof–

(a)lifeinsurancebusiness,notlessthanN8,000,000,000.00;

(b)non-lifeinsurance,notlessthanN10,000,000,000.0O;or

(c)reinsurancebusiness,notlessthanN20,000,000,000.00

Principalplaceofbusiness.

Sharecapital.

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(2)Thepaid-upsharecapitalstipulatedinsubsection(1)ofthissectioninthecase

ofexistinginsurershallcomeintoforceontheexpirationofaperiodof9monthsfrom

thedateofcommencementofthisBill;

(3)TheCommissionshall–

(a) cancel the registration of any insurer or reinsurer that fails to satisfy the

provisionsofsubsections(1)ofthissectionasitrelatestothecategoryofoperation

ofsuchinsurerorreinsurer;and

(b)not later than30daysafterexpiryof theperiodspecified in subsection (2)of

thissectionpublishalistofallinsurersandreinsurersthathavecompliedwiththe

provisionsofthissection.

(4)TheCommissionmayincrease,fromtimetotime,theamountofminimumpaid-

upsharecapitalstatedinsubsection(1)ofthissection.

14._(1)AninsurerintendingtocommenceinsurancebusinessinNigeriaafterthe

commencement of this Bill shall deposit the equivalent of 50 per cent of the paid-up

sharecapitalreferredtoinsection13ofthisBill(inthisBillreferredtoasthe“Statutory

Deposit”)withtheCentralBank.

(2) Upon registration as an insurer, 80 per cent of the statutory deposit shall be

returnedwithinterestnotlaterthan60daysafterregistration.

(3) In the case of existing companies an equivalent of 10 per centum of the

minimum paid-up share capital stipulated in section 13 shall be deposited with the

CentralBank.

(4) Any statutory depositmade under subsection (1) of this section shall attract

interestattheminimumlendingratebytheCentralBankonevery1stofJanuaryofeach

year.

(5)Notwithstandingtheprovisionsofsubsection4ofthissection,theCommission

mayapprovetheinvestmentofthestatutorydepositinTreasuryBillsorothersecured

investmentguaranteedbytheFederalGovernment.

(6)Anywithdrawalfromthestatutorydepositshallbemadegoodwithin30days,

failure of which shall constitutes a ground for suspension from business and such

suspensionshallbepublishedinthenewspapers.

(7)Failuretodepositthestatutorydepositshallconstituteagroundforcancellation

oftheinsurer’slicence.

PARTV–OPERATIONOFINSURANCECOMPANY

15._(1)Thepolicydocumentinrespectofacontractofinsuranceshallbedelivered

SharecapitaltobedepositedwiththeCentralBankof

Nigeria.

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totheinsurednotlaterthan5daysafterpaymentofpremiumor30daysinrespectof

specialandindustrialrisksinsurance.

(2) An insurerwho contravenes the provisions of this section shall be liable to a

penaltyofnotlessthan10percentofthepremiumreceivedandsuchotherpenaltiesas

mayheprescribedinregulationsissuedbytheCommissionfromtimetotime.

(3)Aninsurershallnotbeentitledtorelyonanyterm,conditionorwarrantyina

policy of insurance to refuse a claimwhere it is established that the policy document

wasnotdelivered to the insuredorhisbrokerbefore the lossoccurred, exceptwhere

thelossoccurswithintheperiodspecifiedinsubsection(1)ofthissection.

16._ (1)Nonewinsuranceproductshallbe introduced inanyclassorcategoryof

insurance business without the prior approval of the Commission, provided that a

reinsurershallnotberequiredtoobtaintheapprovalforthesameproduct.

(2)TheapprovalorotherwiseoftheCommissionshallbecommunicatedwithin30

daysofthereceiptoftheapplication.

(3)An insurerwhocontravenes theprovisionsof subsection (1)of this section is

liabletoapenaltyasmaybeprescribedinregulationsissuedbytheCommission.

17._(1)Everyinsurershallkeepandmaintain,at itsprincipaloffice,suchrecords

asmaybeprescribedinregulationsmadebytheCommissionfromtimetotime.

(2)Where an insurer contravenes the provisions of this section, the insurer and

everyofficeroftheinsurerwhofailstocomply,shallbeliabletosuchpenaltiesasmay

beprescribedinregulationsissuedbytheCommissionfromtimetotime.

18._(1)Aninsurershallestablishandmaintain,asmaybeapplicableinrespectof

eachclassofinsurancebusiness–

(a)provisionforunearnedpremiums;

(b)provisionforunexpiredrisks;

(c)provisionforoutstandingclaims;and

(d) such other provisions as may be prescribed from time to time by the

Commission.

(2) The Commission shall, from time to time, prescribe the method for

determinationoftheprovisionsreferredtoinsubsection(1)ofthissection.

(3)Theamountoftheprovisionsmadepursuanttosubsections(1)and(2)ofthis

section and other business expenses incurred by an insurance company registered

underthisBillshallbefullydeductiblefortaxpurposes.

Deliveryofpolicydocument.

Approvalofnewinsuranceproducts.

Recordstobekeptbyaninsurer.

Provisionsforunexpiredrisksandclaims.

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19._ (1) An insurer shall establish and maintain contingency reserves to cover

fluctuationsinsecuritiesandvariationinstatisticalestimates.

(2) The contingency reserves shall be credited with an amount not less than 3

percentofthetotalpremiumor20percentofthenetprofits(whicheverisgreater)and

theamountshallaccumulateuntilitreachestheamountoftheminimumpaid-upcapital

or50percentofthenetpremiums(whicheverisgreater).

20._ (1) An insurer shall in respect of its life insurance business maintain the

followingreserves–

(a)ageneralreservefundwhichshallbecreditedwithanamountequaltothenet

liabilitiesonpoliciesinforceatthetimeoftheactuarialvaluationandanadditional

25percentofnetpremiumforeveryyearbetweenvaluationdate;and

(b)acontingencyreserve fundwhichshallbecreditedwithanamountequal to1

percentofthegrosspremiumsor10percentoftheprofits(whicheverisgreater)

andaccumulateduntilitreachedtheamountoftheminimumpaid-upcapital.

21._Areinsurershallestablishageneralreservefundwhichshallbecreditedwith

anamount–

(a)notlessthan50percentofhisinsurer’sgrossprofitfortheyearwherethefund

islessthantheauthorizedcapitaloftheinsurer;and

(b)notlessthan25percentofthereinsurergrossprofitfortheyearwherethefund

isequaltoorexceedstheauthorizedcapitalofthereinsurer.

22._(1)Aninsurershall,inrespectofitsbusiness,maintainatalltimesamarginof

solvency being the excess of the value of its admissible assets over its liabilities in

Nigeriaasmaybeprescribed,fromtimetotime,bytheCommission.

(2)Pursuanttosubsection(1)ofthissectionthesolvencymarginshallbe–

(a)thesolvencymargincalculatedinaccordancewiththeextantregulations;or

(b) the solvencymargin that the Commissionmay direct under subsection (3) of

thissection.

(3)Where,havingregardtothenatureandextentoftheinsurancebusinesscarried

onbytheinsurer,theCommissionconsidersitappropriate, itmay,bynotice,directan

insurertomaintainahighersolvencymargin.

(4)Adirectionissuedundersubsection(3)ofthissectionshallspecifyareasonable

periodforcompliancewiththedirection.

(5) An insurer who contravenes the provisions of this section is liable to such

penalty as may be prescribed, from time to time, by the Commission and such

Contingencyreserves.

Reservesforlifeinsurancebusiness.

Reserveforreinsurers.

Solvencymargin.

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contraventionmayconstituteagroundforcancellationoftheinsurer’slicence.

23._ (1) The Commission shall from time to time, issue risk based capital

requirementsforeachclassofinsurancebusiness.

(2) Every insurer shall, on or before to 31st of March of each year prepare and

submittotheCommission,areportofitsRiskBasedCapitallevelsasat31stofDecember

of theprecedingyear ina formandcontainingsuch informationasmaybeprescribed

fromtimetotime,bytheCommission.

24._(1)Aninsurershallatalltimes,inrespectoftheinsurancebusinesstransacted

byitinNigeria,investandholdinvestedinNigeria,assetsequivalenttonotlessthanthe

amountofinsurancefundsintheaccountsoftheinsurer.

(2)Subject to theprovisionsof subsection (1)of this section, the insurance funds

shall be invested in such assets as may be prescribed, from time to time, by the

Commission.

(3) An insurer who contravenes the provisions of this section is liable to such

penaltyasmaybeprescribedfromtimetotimebytheCommission.

25._Aninsurerwhoencumbersordisposesofinvestmentordoesanyotherthing

whichresultsindiminishingthesecurityofferedbyanyinvestmentmadeunderthisBill

shallbeliabletoapenaltyinsuchamountasmaybeprescribedfromtimetotimebythe

Commission.

26._(1)Aninsurershall,notlaterthanthe31stdayofMarchofeachyear,submitin

writingtotheCommissionthefollowing–

(a)dulyauditedfinancialstatementsoftheinsureranditssubsidiariesattheendof

theprecedingyearbeforepresentationatitsannualgeneralmeeting;

(b)a revenueaccountapplicable toeach, category/classof insurancebusiness for

which the insurer is required tokeep separateaccountof receipts andpayments;

and

(c)astatementofinvestmentsrepresentingtheinsurancefundsandshareholders’

fund.

(2)Thereturnsandaccountsrequiredtobesubmittedundersubsection(1)(a)and

(b)ofthissectionaretobeinsuchformasmaybeprescribedbytheCommission.

(3)Aninsurerwhofails,neglects,delaysorrefusestofilethereturnsandaccounts

underthissectionisliabletosuchpenaltyasmaybeprescribedfromtimetotimebythe

Commission.

(4) Where the Commission is satisfied that the insurer has complied with the

Riskbasedcapital.

Investmentofinsurancefunds.

Penaltyinrelationtoinvestments.

Statementofaccounts,etc.

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provisionsofsubsections(1)and(2)ofthissection,itshallwithin14daysofsubmission

of the returnsapprove such returnsandwhere theCommission isdissatisfied, it shall

informtheinsurerinwritingwithinthesaidperiod.

(5) Where the Commission does not communicate its decision as prescribed in

subsection(4)ofthissection,thereturnsshallbedeemedtohavebeenapprovedbythe

Commissionwitheffectfromtheexpirationofthatperiod.

(6)An insurer shall in eachyear after receipt of the approval of theCommission,

publishitsgeneralannualbalancesheettogetherwithitsprofitandlossaccountsinat

least2widelycirculatednewspapersinNigeria.

(7)AninsurershallnotholditsAnnualGeneralMeetingordistributeanydividends

untiltheCommissionhasapprovedtheannualreturns.

(8)Aninsurerwhofailsorneglectstocomplywiththeprovisionsofsubsections(6)

and(7)ofthissectionisliabletosuchpenaltyasmaybeprescribed,fromtimetotime,

bytheCommission.

27._ (1) An insurer transacting life assurance business shall, in addition to the

provisions of section 26 of this Bill, submit annually to the Commission, a valuation

reportintheformasmaybeprescribed,fromtimetotime,bytheCommission.

(2) Pursuant to the provisions of subsection (1) of this section, the Commission

shallrequireaninsurertransactinglifeassurancebusinessto–

(a)causeapersonwhoforthetimebeingistheactuaryoftheinsurertoinvestigate

theinsurer’sfinancialcondition(includingcarryingoutavaluationoftheinsurer’s

liabilities)inrespectofitsinsurancebusinessasataspecifieddate;

(b)causetheactuarytomakeandsubmittotheCommissionacopyofthereportof

theinvestigation;

(c)prepareandsubmittotheCommissionastatementofitslifeassurancebusiness

orpartthereofasatthedateoftherequest;and

(d) show sufficient evidence that not more than a prescribed proportion of the

actuarialsurplusdeclaredisappropriatedforshareholders.

(3)Aninsurertransactinglifeassuranceshall,attheexpirationofeachyear,submit

totheCommissionsuchstatementsanddocumentsasmaybeprescribed,fromtimeto

time,bytheCommission.

(4)TheCommissionshall,whereitappearstoitthatthestatementfurnishedbyan

insurerundersubsections(1)and(2)ofthissectionisinaccurateorisnotpreparedin

theprescribedformorisdefectiveinanymaterialparticular–

Lifeinsurancereturns.

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(a)requirefromtheinsurersuchfurtherinformationasitmayconsidernecessary;

(b)callontheinsurertosubmit, foritsexamination,anybookofaccount,register

oranyotherdocument;

(c) require the insurer to confirm, on oath or by a sworn declaration, the

authenticityofanystatementsubmittedbytheinsurer;or

(d) refuse toapprove the insurer’s annual statementunless the inaccuracieshave

beenrectified.

(5)Aninsurerwhofails,neglectsorrefusestofiletherequiredreturnsoraccounts

underthissectionisliabletoapenaltyasmaybeprescribed,fromtimetotime,bythe

Commission.

28._(1)Aninsurertransactingnon-lifeinsurancebusinessshall,inadditiontothe

provisions of section 26 of this Bill submit to the Commission every year, a valuation

reportintheformasmaybeprescribed,fromtimetotimebytheCommission.

(2) Pursuant to the provisions of subsection (1) of this section, the Commission

shallrequireaninsurertransactingnon-lifeinsurancebusinessto–

(a)causeapersonwhoforthetimebeingistheactuaryoftheinsurertoinvestigate

an insurer’s financial condition (including the carrying out of valuation of the

insurer’sliabilities)inrespectoftheinsurer’sbusinessasataspecifieddate;

(b)causetheactuarytomakeandsubmittotheCommissionacopyofthereportof

theinvestigation;

(c) prepare and submit to the Commission a statement of its non-life insurance

businessorpartthereofasatthedateoftherequest;and

(d) show sufficient evidence that not more than a prescribed proportion of the

actuarialsurplusdeclaredisappropriatedforshareholders.

(3) An insurer transacting non-life insurance business shall, at the expiration of

each year, submit to the Commission such statements and documents as may be

prescribed,fromtimetotime,bytheCommission.

(4)TheCommissionshall,whereitappearstoitthatthestatementfurnishedbyan

insurerundersubsections(1)and(2)ofthissectionisinaccurateorisnotpreparedin

theprescribedformorisdefectiveinanymaterialparticular–

(a)requirefromtheinsurersuchfurtherinformationasitmayconsidernecessary;

(b)callontheinsurertosubmit, foritsexamination,anybookofaccount,register

oranyotherdocument;

(c) require the insurer to confirm, on oath or by a sworn declaration, the

Non-lifeinsurancereturns.

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authenticityofanystatementsubmittedbytheinsurer;or

(d) refuse toapprove the insurer’s annual statementunless the inaccuracieshave

beenrectified.

(5)Aninsurerwhofails,neglectsorrefusestofiletherequiredreturnsoraccounts

underthissectionisliabletoapenaltyasmaybeprescribed,fromtimetotime,bythe

Commission.

29._(1)Thefinancialstatementsandrevenueaccountofaninsurerinrespectofthe

insurancebusiness transactedby the insurer, shallbeauditedannuallybyanexternal

auditorapprovedbytheCommission.

(2)Attheconclusionoftheaudit,theauditorshallissueareportsignedbyhimin

line with relevant auditing standards and other requirements as may be prescribed,

fromtimetotime,bytheCommission.

30._(1)Wheretheexternalauditor’sappointmentisterminatedforanyreason,the

auditorshallsubmit to theCommissionastatementofwhat theauditorbelieves tobe

thereasonsforthattermination.

(2) The furnishing, in good faith, by an auditor of a report or information as

required under this section shall not be deemed to constitute a contravention of a

provisionofalaworabreachofaprovisionofacodeofprofessionalconducttowhich

theauditorissubject.

(3) The failure, in good faith, by an auditor to furnish a report or information in

terms of this section shall not confer upon any person a right of action against the

auditorwhich,butforthatfailurethatpersonwouldnothavehad.

PARTVI–INSURANCEINTERMEDIARIES

31._(1)Apersonshallnotbelicencedasaninsuranceagentunless–

(a)hepossessesacertificateofproficiencyissuedbytheInstitute;

(b)inthecaseofacorporateentity,atleastoneoftheprincipalofficerspossessesa

certificateofproficiencyissuedbytheInstitute;or

(c)whereinsurancebusinessistobetransactedthroughmorethanoneoutletofa

corporatebodyseekingregistrationasaninsuranceagent,thedeskofficerineach

oftheoutletspossessesacertificateofproficiencyissuedbytheInstitute;and

(d)prior to thedate of his appointment, hehasnot been convictedby a court or

tribunalforanoffenceinvolvingdishonestyorfraudbywhatevernamecalled.

(2) An application for a licence as an insurance agent shall be made to the

Commissionintheformandbeaccompaniedbythefeesandsuchotherdocumentsas

Audits.

Terminationofauditor’s

appointmentbyinsurer.

Insuranceagents.

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maybeprescribed,fromtimetotime,bytheCommission.

(3) Where the Commission is satisfied that the applicant has satisfied the

requirementsofthissectionandsuchotherrequirementsasmaybeprescribed,itshall

licencetheapplicantasaninsuranceagent.

(4)WheretheCommissionisnotsatisfiedastoanyofthemattersreferredtointhis

sectionandsuchotherrequirementsasmaybeprescribed,theCommissionshallinform

the applicant inwriting of its decision rejecting the applicationwithin a period of 45

days from the date of receipt of the application or submission of any other relevant

documentorevidenceasmayberequiredbytheCommission.

(5)ApersonaggrievedbythedecisionoftheCommissionrejectinghisapplication

mayappeal inwritingagainstsuchadecisiontotheBoardwithin30daysofreceiving

noticeofrefusal.

(6) The Board shall within 90 days of receiving the appeal give its decision on

whether to allowor reject the appeal andmay impose such conditions as it deems fit

whereitallowstheappeal.

(7)Alicenseissuedunderthissectionentitlestheholdertotransactbusinessasan

insuranceagentfortheinsurernamedinthelicence.

(8)Alicenseissuedunderthissectionisrenewableeveryyearoratsuchtimesand

uponpaymentofsuchfeeasmaybeprescribed,fromtimetotime,bytheCommission.

(9)Any insurerwhodealswith an insurance agent not licensedunder thisBill is

liable to a penalty of a sum equal to five times the amount of premium collected in

respectofthebusinesstransacted.

(10)Apersonwho transactsbusiness as an insuranceagentwithouthavingbeen

licenced as required under this Part of this Bill commits an offence and is liable on

conviction to a fine not exceeding N250,000.00 or to a term of imprisonment not

exceeding6monthsortobothfineandimprisonment.

(11) In addition to subsection (10) of this section, the courtmaymake an order

requiring the person to refund any sums collected by him, while so transacting the

business,totherightfulownersorotherentitledpersons.

32._ (1) An insurer who carries on insurance business through insurance agents

shallmaintain a register showing thenameandaddressof every insurance agent and

thedateonwhichtheserviceswerecontractedand,whereapplicable,terminated.

(2) Where an insurance business is transacted through an insurance agent, the

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insuranceagent shall immediately,butnot later than24hours,pay to the insurerany

premiumcollectedbyhim,weekendsandpublicholidaysexempted.

(3)Aninsuranceagentwhofailstopayanypremiumcollectedbyhimtotheinsurer

inaccordancewithsubsection(2)ofthissection–

(a)commitsanoffenceandisliableonconvictiontoatermofimprisonmentof12

monthsortoafineofanamountequalto5timesofpremiuminvolved;

(b)shallhavehisappointmentterminatedbytheinsurancecompany;and

(c)shallnotbeeligibleforfurtherengagementasaninsuranceagentoremployee

byanyinsuranceoperatorforaperiodof6months.

(4) Notwithstanding the provisions of subsection (3) of this section, the

Commissionmay,whereappropriate, imposesuchpenaltieson the insuranceagentas

maybeprescribed,fromtimetotime,bytheCommission.

33._ (1)Notwithstandingtheprovisionsofanyother law,nopersonshall transact

businessinNigeriaasaninsurancebrokerunlessheislicencedundertheprovisionsof

thisBill.

(2) Application for a licence as an insurance broker shall be made to the

Commissionintheformandaccompaniedbythefeeandsuchotherdocumentsasmay

beprescribed,fromtimetotime,bytheCommission.

(3)WheretheCommissionissatisfiedthat–

(a) the applicant is a partnership or a limited liability company duly registered

under the Companies and AlliedMatters Act, Cap C20 Laws of the Federation of

Nigeria,2004withsuchminimumfullypaidupsharecapitalasmaybeprescribed,

fromtimetotime,bytheCommission;

(b) the partner or chief executive officer of the applicant company is a qualified

personwithcognateexperienceandisamemberoftheInstitute;and

(c) the applicant hasmet such requirements asmay be prescribed, from time to

time,bytheCommission,

theCommissionshalllicencetheapplicantasaninsurancebroker.

(4)Where theCommission is not satisfied as to anyof thematters referred to in

subsection(3)ofthissection,theCommissionshallinformtheapplicantinwritingofits

decision rejecting the application within 45 days from the date of receipt of the

application or submission of any other relevant document or evidence as may be

requiredbytheCommission.

(5)ApersonaggrievedbythedecisionoftheCommissionrejectinghisapplication

Dutiesofinsurers

andagents.

Licencingofinsurancebrokers.

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mayappeal inwritingagainstsuchadecisiontotheBoardwithin30daysofreceiving

noticeofrefusal.

(6) The Board shall within 90 days of receiving the appeal give its decision on

whether to allowor reject the appeal andmay impose such conditions as it deems fit

whereitallowstheappeal.

(7)Apersonwho transactsbusiness as an insurancebrokerwithouthavingbeen

licencedforthatpurposeunderthisBillcommitsanoffenceandisliableonconviction–

(a) in thecaseofacompany, firmorothercombinationofpersons,eachprincipal

officerofthecompany,firmorothercombinationofpersonstoafinenotexceeding

N1,000,000.00;and

(b)inthecaseofanindividual,toafineofnotexceedingN500,000.00ortoaterm

ofimprisonmentnotexceeding12months.

(8) Inaddition to theprovisionsof subsection(7)of this section, theCommission

shallmakeanorderrequiringtherefundofthemoniescollectedbythecompany,firm

orindividualtotherightfulownersorotherpersonsentitledtothemoniescollected.

(9)Aninsurerwhoknowinglyorrecklesslytransacts insurancebusinesswithany

person mentioned in subsection (7) of this section or pays commission to a broker

whoselicencehaslapsedandhasnotbeenrenewedisliabletoapenaltyofasumequal

totentimesthecommissiondueonthebusinesstransacted.

34._(1)Aninsurancebrokershallnotundertakereinsurancebrokingwithoutbeing

licencedbytheCommission.

(2) The Commission may grant licence to an insurance broker for purposes of

subsection(1)ofthissectionwhereitissatisfiedthat–

(a) the insurance broker has the required expertise to conduct the class of

reinsurancebusiness;and

(b)atleastonepartnerordirectoroftheinsurancebrokingfirmorcompanyhasa

minimum of 7 years working experience in the middle management cadre of a

reinsurancebrokingfirmorcompany.

(3)Where theCommission is not satisfied as to anyof thematters referred to in

subsection (2) of this section or any other matter, the Commission shall inform the

applicant inwritingof itsdecisionrejecting theapplicationwithinaperiodof45days

fromthedateofreceiptoftheapplicationorsubmissionofanyotherrelevantdocument

orevidenceasmayberequiredbytheCommission.

(4)ApersonaggrievedbythedecisionoftheCommissionrejectinghisapplication

Reinsurancebroking.

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mayappeal inwritingagainstsuchadecisiontotheBoardwithin30daysofreceiving

noticeofrefusal.

(5) The Board shall within 90 days of receiving the appeal give its decision on

whether to allowor reject the appeal andmay impose such conditions as it deems fit

whereitallowstheappeal.

(6)Apersonwhotransactsbusinessasareinsurancebrokerwithouthavingbeen

licencedforthatpurposeunderthisBillcommitsanoffenceandisliableonconviction–

(a) in thecaseofacompany, firmorothercombinationofpersons,eachprincipal

officerofthecompany,firmorothercombinationofpersonstoafinenotexceeding

N1,000,000.00;and

(b)inthecaseofanindividual,toafineofnotlessthanN500,000.00ortoatermof

imprisonmentnotexceeding12months.

(7) Inaddition to theprovisionsof subsection (6)of this section, theCommission

shallmakeanorderrequiringtherefundofthemoniescollectedbythecompany,firm

orindividualtotherightfulownersorotherpersonsentitledtothemoniescollected.

35._ (1) All insurance and reinsurance brokers shall renew their licences on or

beforesuchdateasmaybeprescribedbytheCommissioninthelicence.

(2)Forthepurposesofrenewal,alldocumentsshallbesubmittedwithinsuchtime

asmaybeprescribed,fromtimetotime,bytheCommission.

(3)TheCommissionshallpublishthelistofallbrokerswithvalidlicencesnotlater

than30daysafterthedatespecifiedinsubsection(1)ofthissection.

(4) Where the Commission informs an applicant rejecting the application for

renewaloflicence,theprovisionsofsection33(4),(5)and(6)ofthisBillshallapplyin

relationtoinsuranceandreinsurancebrokers.

36._(1)TheCommissionshallgivenoticeinwritingtothebrokerofitsintentionto

cancelthelicenceofthebrokerwhereitissatisfiedthatthebroker–

(a) has knowingly or recklessly contravened the provisions of this Bill or

RegulationsissuedpursuanttothisBill;

(b)iscarryingonbusinessasalossadjuster;

(c)has,forthepurposeofobtainingalicenceorpayingalevytotheCommission,

knowinglyorrecklesslymadeastatementwhichisfalseinanymaterialparticular;

(d) has knowingly or recklessly made false declaration of its income or false

declarationofremittanceofpremiumscollected;

(e)hasbeenfoundguiltybyacourtofcompetentjurisdictionofdishonestyorfraud

Renewaloflicence.

Cancellationoflicenceofaninsuranceorreinsurancebroker.

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bywhatevernamecalled,includingmisappropriationofclients’money;or

(f)hasknowinglyorrecklesslytakenactioncontrarytothecodeofconductofthe

profession.

(2)TheCommissionshallinthenoticeofitsintentiontocancelthelicencegivethe

brokeraspecifiedperiodoftime,asitmaydeemnecessary,withinwhichtoremedyany

ofthedefectsorbreachesidentifiedinsubsection(1)ofthissection,wherethedefects

orbreachesarecapableofbeingremedied.

(3)Wherethedefectorbreachisnotcapableofbeingremediedorwhereitisnot

remedied within the time specified by the Commission in the notice given, the

Commissionshallproceedforthwithtocancelthelicenceofthebroker.

(4)Wherethelicenceofabrokeriscancelled–

(a)thebrokershallforthwithdiscontinuetoacceptanynewbusiness;and

(b)inallcases,theCommissionmayactasareceiverfromthedateofcancellation

inaccordancewiththeprovisionsofthisBill,ormayappointanypersontoacton

itsbehalf.

(5)Abrokerwhose licencehasbeencancelledby theCommissionmaywithin30

daysafterthenoticeoftheCommission’scancellationofitslicenceappealtotheBoard

inwritingsettingoutthegroundsofappeal.

(6) The Board shall within 90 days of receiving the appeal give its decision on

whether to allowor reject the appeal andmay impose such conditions as it deems fit

whereitallowstheappeal.

(7) Where an appeal is disallowed by the Board, the Commission shall cause a

noticetobepublishedasitmaydetermine.

37._Aninsuranceandreinsurancebrokingfirmshall–

(a) maintain a professional indemnity cover of not less than N100Million or 50

percentofitsannualbrokerageincomefortheprecedingyear,whicheverisgreater;

(b)notdirectlyorindirectlyholdfinancialinterestinexcessof10percentin–

(i)aninsurancecompany,or

(ii)alossadjustingcompanyinNigeria;

(c)haveasamemberof its seniormanagementstaffat leastonepersonwhohas

professional qualification in insurance or at least 7 years’ experience at senior

managementlevelwithaninsurerorinsurancebrokingfirm;and

(d) satisfy such other conditions as the Commissionmay prescribe, from time to

time,inrelationtoindemnitycover,staff,financialinterestandkeepingofregister.

Requirementastoindemnitycover,

staff,etc.

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38._ (1) An insurance or reinsurance broker shall keep records of all insurance

business handled by him and accounting records in such form and for suchperiod as

maybeprescribed,fromtimetotime,bytheCommission.

(2) An insurance or reinsurance broker shall submit audited financial statements

and revenue account to theCommissionnot later than30thMarch in each year in the

formprescribed,fromtimetotime,bytheCommission.

(3)Aninsuranceorreinsurancebrokingfirmthatcontravenestheprovisionsofthis

sectionisliabletoapenaltyofsuchsumasmaybeprescribed,fromtimetotime,bythe

Commission.

39._(1)WhereaninsurancebrokerfailstocomplywiththeprovisionsofthisBill,

theCommissionmay,withoutprejudicetoanyfurthersanction,suspendhislicencefora

periodnotexceeding6months.

(2)Aninsurerwhotransactsbusinesswithaninsurancebrokerwhoselicencehas

been suspended is liable to a penalty of N250,000.00 or the amount of premium

involved,whicheverishigher.

(3)Where an insurer continues to violate theprovisions of subsection (2) of this

section, the Commission may give notice of its intention to cancel the licence of the

insurerundersection8ofthisBill.

40._(1)Anexternalauditorwhoauditstheaccountsofaninsuranceorreinsurance

broker shall, at the conclusion of each audit issue a certificate that all premiums

collected by the insurance or reinsurance broker have been paid to the insurer with

whomhetransactedbusinessduringtheyearorotherwise.

(2)Afalsedeclarationofincomeorremittanceofpremiumscollectedknowinglyor

recklesslymadebyaninsuranceorreinsurancebrokershallconstituteagroundforthe

cancellationoflicence.

41._ (1) An insurance broker shall establish andmaintain, at all times, a clients’

account intowhichallmonies,premiums,claimsandrecoveries fromandonbehalfof

clients,insurersandreinsurersshallbepaid.

(2)An insurancebrokerwho contravenes theprovisionsof subsection (1) of this

sectionshallbeliabletoapenaltynotexceedingthesumofN1,000,000.00.

42._(1)ApersonshallnottransactbusinessasalossadjusterinNigeriaunless–

(a)thepersonislicencedforthatpurposeunderthisBill;and

(b) the chief executive or executive director is a member of the Institute and a

registeredmemberofaprofessionalbodyoflossadjustersrecognisedbylaw.

Recordsoftransactions,etc.

Suspensionoflicence.

Auditofinsurancebroker.

Insurancebrokertoestablish

clients’account.

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(2)AnapplicationforlicencingasalossadjustershallbemadetotheCommission

intheformandbeaccompaniedbysuchfeeandotherdocumentsasmaybeprescribed,

fromtimetotime,bytheCommission.

(3) The Commission shall licence the applicant as a loss adjuster, where it is

satisfiedthat–

(a)theapplicanthastheprescribedqualifications;

(b) the applicant is either a partnership or a limited liability company duly

registered under the Companies and Allied Matters Act, Cap C20 Laws of the

FederationofNigeria,2004,withsuchminimumfullypaidupsharecapital,asmay

beprescribed,fromtimetotime,bytheCommission;

(c) the chief executive or the executive director of the applicant company is a

member of the Institute and a registered member of professional body of loss

adjustersrecognisedbylaw;

(d)nopartnerordirectorof theapplicantcompany isanemployeeordirectorof

anyotherinsuranceoperator;and

(e) the applicant hasmet such requirements asmay be prescribed, from time to

time,bytheCommission.

(4)Apersonwhotransactsbusinessasalossadjusterwithouthavingbeenlicenced

forthatpurposeunderthisBillcommitsanoffenceandisliableonconviction–

(a) in thecaseofacompany, firmorothercombinationofpersons,eachprincipal

officerofthecompany,firmorothercombinationofpersonstoafinenotexceeding

N500,000.00;and

(b)inthecaseofanindividual,toafineofnotlessthanN200,000.00ortoatermof

imprisonmentnotexceeding12months.

(5)An insurerwho,knowinglyor recklessly, engages theservicesofapersonnot

licensedasalossadjusterunderthisBillisliabletoapenaltyofasumequalto10times

thefeeschargedfortheservicesrendered.

43._(1)Alllossadjustersshallrenewtheirlicencesonorbeforesuchdateasmay

beprescribed,fromtimetotime,bytheCommission.

(2) For the purposes of renewal, all documents shall be submitted to the

Commission within such time as may be prescribed, from time to time, by the

Commission.

(3)TheCommissionshallpublishannuallythelistofalllicencedlossadjusters.

(4) Where the Commission informs an applicant rejecting the application for

Licencingoflossadjusters.

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renewaloflicence,theprovisionsofsection34(4),(5)and(6)ofthisBillshallapplyas

ifreferencesinthatsectiontoinsurancebrokerwerereferredtolossadjusters.

44._ (1)TheCommission shall givenotice inwritingof its intention to cancel the

licenceofalossadjusterwhereitissatisfiedthatalicencedlossadjusterhas–

(a)knowinglyorrecklesslycontravenedtheprovisionsofthisBill;

(b) for the purpose of licensing or payment of a levy to the Commission,made a

statementwhichisfalseinanymaterialparticular;

(c)beenfoundguilty,byacourtofcompetentjurisdictionofdishonestyorfraudby

whatevernamecalled(includingmisappropriationofclient’smonies);or

(d)inanymannerdisplayedanyactofprofessionalmisconduct,

(2)TheCommissionshall in thenoticeof its intention tocancel the licenceof the

lossadjustergivethelossadjusteraspecifiedperiodoftime,asitmaydeemnecessary,

withinwhichtoremedyanyofthedefectsorbreachesidentifiedinsubsection(1)ofthis

sectionwherethedefectsorbreachesarecapableofbeingremedied.

(3)Wherethedefectorbreachisnotcapableofbeingremediedorwhereitisnot

remedied within the time specified by the Commission in the notice given, the

Commissionshallproceedforthwithtocancelthelicenceofthelossadjuster.

(4)Wherethelicenceofalossadjusteriscancelled–

(a)thelossadjustershallforthwithdiscontinuetoacceptanynewbusiness;and

(b)inallcases,theCommissionmayactasareceiverfromthedateofcancellation

inaccordancewiththeprovisionsofthisBill,ormayappointanypersontoacton

itsbehalf.

(5)AlossadjusterwhoselicencehasbeencancelledbytheCommissionmaywithin

30daysafterthecancellationappealtotheBoardinwritingsettingoutthegroundsof

appeal.

(6) The Board shall within 90 days of receiving the appeal give its decision on

whether to allowor reject the appeal andmay impose such conditions as it deems fit

whereitallowstheappeal.

(7) Where an appeal is disallowed by the Board, the Commission shall cause a

noticetobepublishedinsuchamannerasitmaydetermine.

45._ A loss adjuster shall keepproper recordsof all its business in such formsas

maybeprescribedwhichshallbesubjecttoinspectionbytheCommissionoranyperson

authorizedbytheCommission.

46._ The Commissionmay permit a recognized foreign loss adjuster to attend to

Renewaloflicenceoflossadjusters.

Cancellationoflicenceofaloss

adjuster

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claims inNigeriaonsuch termsandconditionsas itmay, fromtimeto timeprescribe,

providedthattheforeignlossadjustercarriesouttheassignmentincollaborationwith

atleastonefirmoflossadjustersregisteredunderthisBill.

PARTVII–ACTUARY

47._(1)WhereaninsurerisrequiredtoappointanActuaryandfailstosoappoint,

theCommissionmayappointaqualifiedpersontoactastheActuaryforthebusinessof

theinsurerunderthisBill.

(2)AnActuaryappointedundersubsection(1)ofthissectionisconsidered,forthe

purposesofthisBill,tohavebeenappointedbytheinsurer.

48._(1)TheActuaryofaninsurer–

(a) isentitledtohaveaccesstoany informationordocument in thepossessionor

under the control of the insurer required for the proper performance of his

functionsanddutiesunderthisBill;and

(b)may require any director or employee of the insurer to answer questions or

producedocumentsforthepurposeofenablingtheActuarytoproperlyperformhis

functionsanddutiesunderthisBill.

(2)Adirectororemployeeofaninsurershallnotrefuseorfail,withoutexcuse,to

complywiththerequirementofsubsection(1)(b)ofthissection.

(3)Where,withoutreasonableground–

(a) an insurer fails or refuses toprovide itsActuaryaccess to thedocuments and

informationspecifiedinthissection;or

(b)adirectororemployeeoftheinsurercontravenestheprovisionsofsubsection

(1)(b)ofthissection,

theActuaryshallreportthemattertotheCommission.

49._ (1) The Actuary of an insurer shall report immediately to the Commission

where:

(a) reasonable grounds exist for believing that the insurer or a director of the

insurer may have contravened the provisions of this Bill or any other relevant

enactment;and

(b)thecontraventionissuchasmayadverselyaffecttheinterestofpolicyholders

oftheinsurer.

(2)WhereinthecourseofcarryingouthisdutiesunderthisBill,theActuarycomes

acrossanymatterinrelationtothebusinessoftheinsurerwhich,intheopinionofthe

Actuary,requiresactiontobetakenbytheinsurer,oritsdirectors,toavoid–

Recordstobekeptbylossadjuster.

Attendancetoclaimsbyforeignlossadjusters.

PowersoftheCommissiontoappointActuary.

PowersofActuary.

ObligationsofActuary.

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(a)anycontraventionoftheprovisionsofthisBill;or

(b)theinterestofpolicyholdersoftheinsurer,beingadverselyaffected,

theActuaryshallimmediatelyreportsuchmattertotheinsurer.

(3)WheretheActuaryofaninsurermakesareporttotheinsurerundersubsection

(2)ofthissectionandtheinsurerdoesnot,withinsuchtimeastheActuarymayspecify

taketheactionrequired,theActuaryshallreportthemattertotheCommission.

(4)WheretheappointmentofanActuaryisterminatedbyaninsurer,theActuary

shall–

(a) immediately inform the Commission of the termination and disclose to the

Commissionthecircumstancethatgaverisetothetermination;and

(b) report any information which, but for the termination, would have been

reportedtotheCommission.

(5) Where, in good faith, an Actuary provides a report or information to the

Commission under the provisions of subsections (1), (2) or (4) of this section, the

Actuaryshallnotbeincontraventionofanyenactment,ruleorlaworprofessionalcode

of conduct to which the Actuary is subject and no civil, criminal or disciplinary

proceedings shall lie against the Actuary in respect of the report or information

providedtotheCommission.

(6)Thefailure,ingoodfaith,ofanActuarytoprovideareportorinformationtothe

Commissionundersubsections(1),(2)or(4)ofthissection,doesnotconferuponany

otherpersonarightofactionagainsttheActuarywhich,butforthefailure,theperson

wouldnothavehad.

(7)AnActuarywhocontravenestheprovisionsofsubsections(1),(2),(3)or(4)of

this section, is liable to such penalty as prescribed, from time to time, by the

Commission.

50._ (1) An insurer shall, at least once every year, cause an investigation to be

carriedoutbyitsActuaryintoitsfinancialconditioninrespectofitsinsurancebusiness.

(2) An investigation under subsection (1) of this section shall comply with such

requirementsasmaybeprescribedbytheCommission.

(3) The Actuary shall produce a report of the investigation carried out under

subsection(1)ofthissectionasmaybeprescribedbytheCommission.

51._(1)TheCommissionmay,atanytime,bynotice,directaninsurertocausean

Actuary to investigate the aspects of its financial condition that the Commissionmay

specify in the notice and to provide the Commissionwith the report prepared by the

Annualactuarialinvestigations.

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Actuary.

(2)Areportpreparedundersubsection(1)ofthissectionshallbeatthecostofthe

insurer.

(3) The Commissionmay direct that actuarial investigation be carried out by the

Actuaryappointedbytheinsurer,orbyanyotherActuarytheCommissionmayspecify.

PARTVIII–PREMIUMSANDCOMMISSIONS

52._ (1)The receipt of an insurancepremiumshall be a conditionprecedent to a

validcontractof insuranceandthereshallbenocover inrespectofan insurancerisk,

unlessthepremiumispaidinadvance.

(2)Aninsurancepremiumcollectedbyabrokerinrespectofaninsurancebusiness

transacted through the broker shall be deemed to be premium paid to the insurer

involvedinthetransaction.

(3)Where an insurer grants cover, howsoever described, in contravention of the

provisions of subsection (1) of this section or any other provision of this Bill or

regulationsmadebytheCommissionunderthisBill, the insurershallbe liabletosuch

penaltyasmaybeprescribed,fromtimetotime,bytheCommission.

(4)Theprovisionsofsubsection(1)ofthissectionshallnotapplywhereaninsurer

grants cover, howsoever described, in contravention of the subsection in respect of

policiesissuedforthebenefitofthirdpartiesunderanyinsurancemadecompulsoryby

law.

(5) The provisions of this section arewithout prejudice to reinsurance contracts

whichshallbegovernedbythetermsofsuchcontracts.

53._ (1)Where an insurance business is transacted through a broker, the broker

shall,not laterthan14workingdaysafterthereceiptof thepremiumpaythesameto

theinsurer.

(2) A broker who contravenes the provisions of subsection (1) of this section is

liableto–

(a) pay the net premium due to the insurerwith interest at 2 percent above the

CentralBankofNigeriaMinimumRediscountRatefromthedateofthebreach;and

(b)apenaltyinthesumofN500,000.00ortwotimesthevalueofthecommission

earned,whicheverishigher.

(3) Non-remittance of premium may constitute a ground for cancellation of the

licence.

54._ (1) An insurer shall not pay, by way of commission to an insurance agent,

Actuarialinvestigationand

report.

Paymentofinsurancepremium.

Paymentofpremiumthrough

abroker.

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insurancebrokeroranyotherintermediaryanamountexceeding–

(a)3percentofsinglepremiumannuity;

(b)5percentinrespectofperiodicpremiumannuity;

(c)10percentofthepremiuminrespectofgrouplifeassurance;

(d)12.5percentofthepremiuminrespectofmotorinsurancebusiness;

(e)15percentofthepremiuminrespectofworkmen’scompensation;or

(f) 20 percent of the premium in respect of any other class of non-life insurance

business.

(2)Noalteration in theratesofacommissionmentioned insubsection(1)of this

sectionshallbemadeexceptwiththepriorapprovaloftheCommission.

(3)Therateofcommissionpayabletoaninsuranceagentshallnotbemorethan50

percent of the rate of commission payable to insurance brokers or as may be

determined,fromtimetotime,bytheCommission.

(4)Apersonwhopaysorreceivesanycommissionotherthanincompliancewith

the provisions of this section, is liable to a penalty of 5 times the amount of excess

commissionpaidorreceived.

(5) Notwithstanding the provisions of subsection (4) of this section, the

Commission may refer the person to the appropriate law enforcement agency for

prosecution.

(6)Apersonreferredforprosecutionundersubsection(5)ofthissection,shallon

convictionbeliabletoafineofN1,000,000.00orimprisonmentforamaximumtermof

12months.

55._ (1)An insurershallnotgrantanydiscountor rebate in theapprovedrateof

premium in respect of insurance made compulsory by law unless such discount or

rebateisapprovedbytheCommission.

(2)An insurerwhocontravenestheprovisionsofsubsection(1)of thissection, is

liabletoapenaltyof5timestheamountofpremiumchargeable.

(3) A person shall not offer or receive, either directly or indirectly, as an

inducementtoanypersontotakeoutorreneworcontinueaninsurancecontract,any

rebateofthe–

(a)wholeorpartofthecommissionpayableunderthisBill;or

(b)premiumshownon thepolicy, except such rebateasmaybeapprovedby the

Commissionandpublishedintheprospectusortableofratesoftheinsurer.

(4) Any insurance operator who offers or receives any rebate otherwise than as

Paymentofinsurancecommission.

Prohibitionofcertaindiscountsandrebates.

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providedforinsubsection(3)ofthissection–

(a)isliabletoapenaltyof10timestheamountofrebateofferedorreceived;and

(b) shall constitute a ground for the cancellation of the licence of the insurance

operatorunderthisBill,

wherethecontraventioniscontinuous.

PARTIX–INSURANCECONTRACTS:DISCLOSURE,CONDITIONSANDWARRANTIES

56._(1)Whereaninsurerrequiresaninsuredtocompleteaproposalformorany

otherapplicationformforinsurance,theformshallbedrawnupinsuchamannerasto

elicitsuchinformationastheinsurerconsidersmaterialinacceptingtheapplicationfor

insuranceoftheriskandanyinformationnotspecificallyrequestedshallbedeemednot

tobematerial.

(2)Theproposalformoranyotherapplicationformforinsuranceshallbeprinted

ineasily readable letterswithan inscription ina conspicuousplaceon the frontpage,

that “the insurance agent who assists an applicant to complete an application or

proposal form for insurance shall be deemed to have done so as the agent of the

applicant”.

(3)Adisclosureorrepresentationmadebytheinsuredtotheinsuranceagentshall

be deemed to be a disclosure or representation to the insurer provided the agent is

actingwithinhisauthority.

57._(1)Inacontractofinsurance,abreachofatermofthecontract,whethercalled

awarrantyoracondition,shallnotgiverisetoanyrightby,oraffordadefencetothe

insurerunlessthetermismaterialandrelevanttotheriskorlossinsuredagainst.

(2)Wherethereisabreachofatermofacontractofinsurance,theinsurershallnot

beentitledtorepudiatethewholeoranypartofthecontractoraclaimbroughtonthe

groundsofthebreachunless–

(a)thebreachamountstoafraud;or

(b)itisabreachofafundamentaltermofthecontract.

(3)Where there is abreachof amaterial termof a contractof insuranceand the

insuredmakesaclaimagainsttheinsurerandtheinsurerisnotentitledtorepudiatethe

whole or anypart of the contract, the insurer shall be liable to indemnify the insured

onlytotheextentofthelosswhichwouldhavebeensufferediftherewasnobreachof

theterm.

(4)Nothinginthissectionshallpreventtheinsurerfromrepudiatingacontractof

insuranceonthegroundofabreachofamaterialtermbeforetheoccurrenceoftherisk

Proposalform.

Breachofmaterialandrelevant

terms.

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orlossinsuredagainst.

(5)Notwithstandingtheprovisionsofthissectionaninsurermaywaivethebreach

ofatermofthecontract.

(6)Forthepurposeofsubsection(2)ofthissection,“fundamentalterm”meansa

warranty,conditionorothertermofaninsurancecontractwhichaprudentinsurerwill

regard as material and relevant in accepting to underwrite a risk and in fixing the

amountofpremium.

(7)Inthissection,theword“insured” includesapersonmakinganapplicationto

procureaninsurance.

58._(1)Apolicyofinsurancemadebyapersononthelifeofanyotherpersonoron

anyothereventwhatsoevershallbenullandvoidwheretheperson,forwhosebenefit,

oronwhoseaccountthepolicyofinsuranceismade,hasnoinsurableinterestinthelife

orsubjectmatterinsuredorwhereitismadebywayofgamingorwagering.

(2)Apersonshallbedeemedtohaveaninsurable interest inthe lifeofanyother

personorinanyothereventwherehestandsinanylegalrelationshiptothatpersonor

othereventinconsequenceofwhichhemaybenefitbythesafetyofthatpersonorevent

orbeprejudicedbythedeathofthatpersonorthelossfromtheoccurrenceoftheevent.

(3) In this section, “legal relationship” includes the relationship which exists

between persons under customary law or Islamic law whereby one person assumes

responsibilityforthemaintenanceandcareoftheother.

59._ (1) A policy of insurance shall not bemade on the life of a person or event

withoutinsertinginthepolicy,thenameoftheinsuredortheeventorthoseforwhose

benefitoronwhoseaccountthepolicyismade.

(2)Theprovisionof subsection (1)of this sectionshallnot invalidateapolicy for

the benefit of unnamed persons from time to time, falling within a specified class or

description,iftheclassordescriptionisstatedinthepolicywithsufficientparticularity

tomake it possible to establish the identity of all personswho at any given time are

entitledtobenefitunderthepolicy.

60._ A personwith an insurable interest in the life or event insured, shall not be

entitledtoreceivefromtheinsureranamountgreaterthanthatvalueoftheinterestof

theinsuredinsuchlifeorotherevent.

61._Apersonwho–

(a)isentitledbyassignmentorotherderivativetitletoapolicyofinsurance;and

(b) has, at the time when action is brought on the policy, the right in equity to

Insurableinterest.

Policydocumenttospecifyinsured

orevent

Limitationonamount

receivable.

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receiveandtogiveaneffectualdischargetotheinsurerliableundersuchpolicyfor

moneytherebyassuredorsecured,

shall be entitled to sue in the name of such person to recover suchmoney, but such

assigneeshallnothaveabettertitlethantheinsured.

62._(1)Anassignmentofapolicyoflifeinsuranceshallnotconferontheassignee

or his personal representatives any right to sue for the amount of the policy or the

insured money, unless a written notice of the date and purport of the assignment is

giventotheinsurerliableunderthepolicyathisprincipaladdressofbusiness.

(2)Thedateonwhichthenoticeisreceivedshallregulatethepriorityofallclaims

undertheassignment.

(3)Anassignmentofapolicyoflifeinsurancemaybemadebyendorsementonthe

policy or by a separate instrument in such form as may be prescribed by the

Commission.

63._(1)Aninsurertowhomanoticeofassignmentisgiveninrespectofanypolicy

for which the insurer is liable, shall acknowledge such notice and that

acknowledgement, shall be a conclusive evidence against the insurer of his having

receivedthenotice.

(2)Notwithstandingtheprovisionsofthissection,theonusofprovingthedelivery

ofanoticeofassignmentshallbeontheassigneeiftheinsurerfailstoacknowledgethe

receiptofthenotice.

64._TheprovisionsofthisPartshallnotapplytocontractsofmarineinsurance.

PARTX–COMPULSORYINSURANCE

65._ (1) A person shall not construct or cause to be constructed any building of

more than two floorswithout insuringhis liability in respectof the construction risks

that may be caused by his negligence or the negligence of his servants, agents,

consultantsorpublic authoritywhichmay result inbodily injuryor lossof life to any

personorworkmanworkingonthesiteortoanymemberofthepublic.

(2) The duty to insure as required under the provision of subsection (1) of this

sectionarisesimmediatelyuponcommencementofconstructionofabuilding.

(3) A person who contravenes the provision of subsection (1) of this section

commits an offence and is liable on conviction to a fine of N5,000,000.00 or

imprisonmenttoamaximumtermof12monthsortobothfineandimprisonment.

(4)Notwithstanding theprovisionsofanyother law,nobuildingplanapprovalof

more thantwo floorsshallbegrantedbyanyapprovingauthoritywithoutevidenceof

Rightofassignee

tosue.

Noticeofassignment.

Acknowledgementofnotice

Provisionsinapplicableto

marineinsurance.

Insuranceofbuildingunderconstruction.

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insuranceunderthissection.

66._(1)Everypublicbuildingshallbeinsuredagainstthehazardsofcollapse,fire,

earthquake, storm, flood and such other hazards as the Commission may determine

fromtimetotime.

(2)Theinsurancepolicytobeprovidedforundersubsection(1)ofthissectionshall

cover the legal liabilities of the owner or occupier of premises for loss or damage to

propertyorbodilyinjuryordeathsufferedbyanyuserofthepremisesandthirdparties.

(3)Every insurer shall payquarterly0.5percent of thenet premium receivedon

policiesissuedundersubsection(1)ofthissectionintoaFireServiceMaintenanceFund

which shall be established, administered and disbursed by the Commission for the

purposeofprovidinggrantorequipmenttoinstitutionsengagedinfire-fightingservices.

(4)Aninsurerwhodefaultsinmakingpaymentasrequiredundersubsection(3)of

thissectionisliabletoapenaltyofafineof10timestheamountpayable,providedthat

persistenceinnon-compliancewiththeprovisionshallbeagroundforthecancellation

ofregistrationofaninsurer.

(5)Anowneroroccupierofpremiseswhocontravenestheprovisionofthissection

commitsanoffenceandisliableonconvictiontoafineofnotlessthanN1,000,000.0Oor

imprisonmentforatermnotexceeding12monthsortobothfineandimprisonment.

(6)Inthissection,“publicbuilding”includesatenementhouseofnotlessthantwo

floors, hostel, a building occupied by a tenant, lodger or licensee and any building to

whichmembers of the public have access for the purpose of obtaining educational or

medicalservice,orforthepurposeofrecreationortransactionofbusiness.

(7) The Commission shall have powers to seal up any building on reasonable

suspicionthatitpossessesseriousrisktothepublicandnoadequateinsurancehasbeen

providedinlinewiththissectionorsection65ofthisBill.

67._(1)Whereahouseoranyotherbuildinginsuredagainstlossbyfireisdamaged

or destroyed by fire and there is no reasonable ground to suspect that the owner,

occupieroranyotherpersonwhoinsuredthehouseorotherbuildingisguiltyoffraud

in respectof the insurance,orofwillfully causing the fire, the insurerwho is liable to

make good the loss may, on the request of any person entitled or interested in the

insured house or building cause the insurance money payable to be paid out and

expendedassetoutinsubsection(2)ofthissection.

(2)Theinsurancemoneypayableundersubsection(1)ofthissectionshallbepaid

out and expended towards re-building, re-instating or repairing of the house or any

Insuranceofpublicbuildings.

Applicationofproceedofclaims

onhousesdestroyedbyfire

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otherbuildingsoburntdown,damagedordestroyedbyfire,unless–

(a) the party or parties claiming such insurancemoney,within 60 days after the

claim isagreed,gives security to the satisfactionof the insurer that the insurance

moneywillbepaidoutandexpendedasstatedherein;or

(b)theinsurancemoneyis,atthetime,settledanddisposedofamongalltheparties

entitled as the insurer may determine with the approval of the court on the

applicationoftheinsureroranyoftheinterestedparties.

(3) Notwithstanding the provisions of subsection (1) of this section, the insurer

shall have the right to elect whether to re-instate the house or building damaged or

destroyed by fire, or to pay the insured for the loss suffered but not exceeding the

insuredsum.

68._(1)Ahealthcareprovidershall–

(a) maintain a professional indemnity insurance from a registered insurance

company;and

(b)displayinitsofficeitsCertificateofInsurance.

(2)Ahealthcareproviderwhofailstocomplywiththeprovisionsofthissectionis

liabletosuchpenaltyasmaybeprescribedbytheCommissioninconsultationwiththe

NationalHealthInsuranceScheme.

(3)AhealthcareprovidershallhavethemeaningassignedtoitundertheNational

Health InsuranceSchemeAct, CapN42Lawsof theFederalRepublic ofNigeria, 2004,

andshallincludeaproviderofmortuaryservices.

69._(1)Theprovisionsofthissectionshallapplyinadditiontotheprovisionsofthe

CivilAviationAct,2006.

(2)Where the provisions of the Civil Aviation Act, 2006 in relation to insurance

mattersareinconsistentwiththeprovisionsofthisBill, theprovisionsofthisBillshall

prevail.

(3) A carrier operating air transport services to, from or within Nigeria, or an

aerodromeoperator, aviation fuel supplier, or aproviderof groundhandling services,

trafficcontrolservices,aircraftmaintenanceservices,oraproviderofsuchotherrelated

or allied services as the Nigerian Civil Aviation Authority may from time to time

determine,shallmaintainadequateinsurancecoveringtheirliabilities–

(a)undertheCivilAviationAct,2006;and

(b)topaycompensationfordamagesthatmaybesustainedbythirdparties.

(4)NotwithstandinganythingcontainedintheCivilAviationAct,2006–

Professionalindemnitybyhealthcareproviders.

Civilaviationinsurance.

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(a)thepolicydocumentasanevidenceofinsurancecovershallbedepositedbythe

carrier,operatororotheraviationserviceproviderwiththeCommissionnot later

thansevendaysbeforecommencementofoperation;and

(b) a carrier, operator or other aviation service providerwho fails to deliver the

policydocumentreferredtoinparagraph(a)ofthissubsectionshallnotbeallowed

tocommenceoperation.

(5) Any carrier, operator or other aviation service provider that commences

operation without having complied with the provisions of this section commits an

offenceand is liableonconviction toa fineofN10,000,000.00andanyof itsprincipal

officerswhoisresponsibleshallbeliableonconvictiontoimprisonmentforamaximum

termof12monthsortobothfineandimprisonment.

70._ (1) An insurance in respect of goods and merchandise to be imported into

NigeriashallbemadewithaninsurerregisteredunderthisBill.

(2)Theprovisionsofanylaw,contractorinstrumentshallbeconstruedwithsuch

modifications, amendments and omissions, aswould bring them into conformitywith

thegeneralintendmentofthissection.

(3)Without prejudice to the generality of the foregoing, every letter of credit or

such similar document issued by any bank or other financial institution in Nigeria in

respectofsuchgoodsandmerchandiseshallbeonacarriageandfreightbasisonly.

(4) An importer, consignee, shipper, broker or agent who effects any insurance

otherwisethanincompliancewiththeprovisionsofthissectioncommitsanoffenceand

isliableonconvictiontoafineofN1,000,000.00orthepremiuminvolved,whicheveris

higher.

71._(1)TheCommissionmay,fromtimetotime,setupanad-hoccommitteetodeal

withmattersrelatingtoanyclassofinsurancebusinessmadecompulsorybythisBill.

(2)TheCommitteesetupby theCommissionundersubsection(1)of thissection

shallconsistofsuchnumberofpersonsandperformsuchfunctionsastheCommission

maydetermine.

PARTXI–MOTORVEHICLES(THIRDPARTY)INSURANCE

72._(1)SubjecttotheprovisionsofthisPart,apersonshallnotuse,causeorpermit

anyotherpersontouseamotorvehicleorbeineffectivecontrolofsuchavehicleunless

thereisinforceinrelationtotheuseofthatmotorvehiclebysuchpersonorsuchother

person as the case may be, a policy of insurance in respect of third party risks in

compliancewiththeprovisionsofthisPart.

Insuranceofimportofgoodsandmerchandise.

Ad-hoccommitteeoncompulsoryinsurancebusiness.

Insuranceagainstthirdpartyrisks.

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(2)Apersonwhocontravenestheprovisionofthissectionisliableonconvictionto

afineofnotlessthanN250,000.00orimprisonmenttoamaximumtermof12months

ortobothtermofimprisonmentandfine.

(3)Apersonshallbedeemedtobeineffectivecontrolofamotorvehiclewithinthe

meaningof this section if he is theownerof themotor vehicle ordirects, instructs or

ordersthemotorvehicletobeusedonahighwayorinanyotherpublicplace.

(4)Inrelationtoavehiclecarryingpassengersforhireorreward,everyfarepaying

passengerinthevehicleshallbeinsuredbytheoperatorofthevehicleagainstdeathor

bodilyinjury.

(5) Pursuant to the provisions of subsection (4) of this section, the Commission

shall specify from time to time the amount of compensationdue to eachpassenger in

respectofdeathorbodilyinjury.

73._Notwithstanding theprovisionsofanywritten law,proceedings in respectof

anoffenceundersection72ofthisBillmaybeinstitutedwithinaperiod–

(a)of6monthsfromthedateofthecommissionoftheallegedoffence;or

(b)notexceeding6monthsfromthedateonwhichitcametotheknowledgeofthe

prosecutor that the offence had been committed or 1 year from the date of the

commissionoftheoffence,whicheverperiodisthelonger.

74._(1)TheprovisionsofthisPartshallnotapplyto–

(a) the user of a motor vehicle owned or in use for military purposes by the

NigerianArmedForces;and

(b) vehicles of government of a foreign State with which there is reciprocal

agreementwith the Government of the Federal Republic of Nigeria in use by the

DiplomaticMissionorofficialsof suchStatewhile suchvehiclesarebeingused in

thecourseofofficialduties.

(2)Withrespecttosubsection(1)(a)ofthissection,theMinisterofDefenceorsuch

otherbodyresponsiblefordefencemattersshallbeliableforallthirdpartyrisks.

(3)With respect to subsection (1)(b)of this section,where there isno reciprocal

Agreement,theDiplomaticMissionshallbeliableforallthirdpartyrisks.

75._(1)Apolicyofinsurance,forthepurposesofthisPart,shallbeapolicywhich–

(a)isissuedbyaregisteredinsurer;

(b) insuressuchpersonsorclassesofpersonsasmaybespecified inthepolicy in

respectofliabilitywhichmaybeincurredbyhimortheminrespectof–

(i)deathoforbodilyinjurytothirdparties,

Limitationoftimeforproceedings.

Exemptions.

Requirementsinrespectofpoliciesandcertificatesof

insurance.

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(ii) medical expenses of any third party accident victim not exceeding

N100,000.00 for out-patient treatment and N250,000.00 for in-patient

treatment or such sum as may be prescribed from time to time by the

Commission,and

(iii)damageto thepropertyof thirdpartiesnotexceedingN5,000,000.00or

suchsumasmaybeprescribedfromtimetotimebytheCommission,caused

byorarisingoutoftheuseofamotorvehiclecoveredbythepolicy.

(2) The policy of insurance mentioned in subsection (1) of this section shall in

addition provide compensation for damage to any public property on the highways

includingstreetlights,trafficlights,crashbarriersandsignposts.

(3)Whereanypaymentismade,whetherornotwithanadmissionofliabilitybyan

insurerunderor in consequenceof apolicy issuedunder theprovisionsof thisBill in

respect of the death or bodily injury to any person arising out of the use of amotor

vehicleandthedeceasedorpersonwhosustainedbodilyinjuryhastotheknowledgeof

the insurerreceivedtreatmentatahospitalwhetherasan in-patientorout-patient, in

respectoftheinjury,theinsurershallalsopaytothehospitaltheexpensesreasonably

incurredingivingsuchtreatmentafterdeductinganymoneysactuallyreceivedbysuch

hospitalinpaymentofaspecificchargeforsuchtreatment:

ProvidedthattheamounttobepaidbytheinsurershallnotexceedN500,000.00orsuch

sumasmaybeprescribedbytheCommissionforeachpersonsotreated.

(4)Notwithstanding the provisions of any other law, a person issuing a policy of

insuranceunderthissectionshallbeliabletoindemnifyapersonspecifiedinthepolicy

inrespectofanyliabilitywhichthepolicypurportstocover.

(5)ApolicyshallbeofnoeffectforthepurposesofthisPart,unlessthereisissued,

by the insurer to the insured, a Certificate of Insurance or such other evidence as

approvedbytheCommission.

76._ (1) Any condition in a policy issued under this Part shall be of no effect in

connectionwithsuchclaimswhereitprovidesthat–

(a)noliabilityshallariseunderthepolicy;or

(b) any liability so arising shall cease in the event of some specified thing being

doneoromittedtobedoneafterthehappeningof theeventgivingrisetoaclaim

underthepolicy.

(2)Nothinginthissectionshallbesoconstruedastorendervoidanyprovisionina

policyrequiringthepersoninsuredtorepaytotheinsureranysumswhichtheinsurer

Certainconditionsinpoliciestobeof

noeffect.

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may have become liable to pay under the policy andwhich have been applied to the

satisfactionoftheclaimsofthirdparties.

77._ (1)Where a certificate of insurancehas been issuedunder theprovisions of

subsection(5)ofsection75ofthisBilltotheinsured,somuchofthepolicyaspurports

torestricttheinsuranceofthepersoninsuredthereby,inrespectofanyofthefollowing

matters,the–

(a)ageorphysicalormentalconditionofpersonsdrivingthemotorvehicle;

(b)conditionofthemotorvehicle;

(c)numberofpersonsthatthemotorvehiclecarries;

(d)weightorphysicalcharacteristicsofthegoodsthatthemotorvehiclecarries;

(e)timesatwhichortheareaswithinwhichthemotorvehicleisused;

(f)horsepowerorvalueofthemotorvehicle;

(g)carryingonthemotorvehicleofanyparticularapparatus;or

(h)thecarryingonthemotorvehicleofanymeansofidentificationrequiredtohe

carriedundertheprovisionsoftheRoadTrafficLaws, inrespectofsuchliabilities

asarerequiredtobecoveredbyapolicyunderparagraph(b)ofsubsection(1)of

section103ofthisBill,shallbeofnoeffect.

(2)Anysumpaidbyan insurer inor towards thedischargeof the liabilityofany

personwhich iscoveredby thepolicybyvirtueof thissectionshallberecoverableby

theinsurerfromthatperson.

78._ (1)Where a judgment in respect of any liability coveredby the termsof the

policyisobtainedagainstanypersoninsured,notwithstandingthattheinsurermaybe

entitledtoavoidorcancelormayhaveavoidedorcancelledthepolicy,theinsurershall,

subjecttotheprovisionsofthissection,paytothepersonsentitledtothebenefitofsuch

judgment,anysumpayablethereunder, includinganysumpayableinrespectofcosts,

writtenlaworanyinterestonthatjudgmentsum.

(2)Nosumshallbepayablebyaninsurerundertheprovisionsofsubsection(1)of

thissectioninconnectionwithanyliabilityifbeforethehappeningoftheevent,which

was the cause of the death or bodily injury or property damage giving rise to the

liability, the policy was cancelled by mutual consent or by virtue of any provision

containedtherein–

(a)beforethehappeningofsucheventthecertificateofinsurancewassurrendered

to the insurer or the person to whom the certificate of insurance was delivered

madeastatutorydeclarationstatingthatthecertificateof insurancehadbeenlost

Avoidanceofrestrictiononthirdpartypolicies.

Dutyofinsurertosatisfyjudgments.

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ordestroyedandsocouldnotbesurrendered;

(b)afterthehappeningofsucheventbutbeforetheexpirationof14daysfromthe

comingintoeffectofthecancellationofthepolicy,thecertificateof insurancewas

surrenderedtotheinsurerorthepersontowhomthecertificateofinsurancewas

delivered,astatutorydeclarationthatthecertificateof insurancehadbeen lostor

destroyedandsocouldnotbesurrendered;or

(c)beforeor after thehappeningof theeventorwithin14days from the coming

intoeffectofthecancellationofthepolicytheinsurerhadcommencedproceedings

underthisPartinrespectofthefailuretosurrenderthecertificateofinsurance.

(3)Nosumshallbepayablebyaninsurerundertheprovisionsofthissectionif,in

an action commenced before or within 3 months after the commencement of the

proceedingsinwhichthejudgmentwasgiven,theinsurerhas–

(a)obtainedadeclarationthatapartfromanyprovisioncontainedinthepolicy,he

isentitledtoavoiditonthegroundthatitwasobtainedbythenon-disclosureofa

materialfactorbyarepresentationoffactwhichwasfalseinamaterialparticular;

or

(b)avoidedthepolicyonthegroundthathewasentitledtodosonotwithstanding

anyprovisioncontainedinthepolicy.

(4) An insurerwho obtained the declaration referred to in subsection (3) of this

section, in an action shall not be entitled to the benefit of the provisions of this

subsection inrespectofany judgmentobtained inanyproceedingscommencedbefore

thecommencementofthatactionunless,within7daysafterthecommencementofthat

action,hasgivennoticethereoftotheplaintiffintheactionunderthepolicy,specifying

the non-disclosure or false representation on which he proposes to rely and that he

intendstoseekadeclarationandanypersontowhomnoticeofsuchactionisgivenmay,

ifhedesires,bemadeapartythereto.

(5) Where the amount which an insurer under the provisions of this section,

becomesliabletopayinrespectoftheliabilityofapersoninsuredbythepolicyexceeds

theamountforwhichhewould,apartfromtheprovisionsofthissection,beliabletopay

under the policy in respect of that liability, he shall be entitled to recover the excess

fromthatperson.

(6) InthisPartreferencestoacertificateof insurance inanyprovisionrelatingto

thesurrenderorlossordestructionofacertificateshall–

(a) in relation to policies under which more than one certificate is issued, be

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construedasreferencestoalloranyofsuchcertificates;and

(b) where any copy of a certificate has been issued, be construed as including a

referencetosuchcopy.

79._ (1)Where, in a policy issued under this Bill for the purposes of this Part, a

person, (hereinafter referred to as ‘the insured’) is insured against liabilities to third

partieswhichtheinsuredmayincur–

(a) in the event of the insured becoming bankrupt or making a composition or

arrangementwithhiscreditors;or

(b)where the insured is a company, andawinding-uporderhasbeenmadeor a

resolution for the voluntary winding up of the company passed or a receiver or

manager of the company’s business or undertaking has been appointed or in the

event of possession having been taken by or on behalf of the holders of any

debenturessecuredbyafloatingchargeonanypropertycomprisedinorsubjectto

the charge, beforeor after any such liability is incurredby the insured, his rights

againsttheinsurerunderthepolicyinrespectofthatliabilityshall,notwithstanding

anythingtothecontrarycontainedinanywrittenlaw,betransferredtoandvested

inthethirdpartytowhomtheliabilitywasincurred.

(2)Where,undertheprovisionsofanylaw,anorderismadefortheadministration

inbankruptcyoftheestateofadeceaseddebtorthenifanydebt,whichmaybeproved

in bankruptcy, is owingby thedeceased in respect of a liability againstwhichhewas

insuredunderapolicyissuedforthepurposesofthisPartasbeingaliabilitytoathird

party, the rights of the deceased debtor against the insurer under that policy shall,

notwithstanding anything to the contrary contained in any law, be transferred to and

vestinthepersontowhomthedebtisowing.

(3)AnyconditioninapolicyissuedforthepurposesofthisPartpurportingdirectly

orindirectlytoavoidthepolicyortoaltertherightsofthepartiesthereunderuponthe

happeningofanyoftheeventsspecifiedinsubsections(1)or(2)ofthissection,shallbe

ofnoeffect.

(4)Uponatransferofrightsundersubsection(1)or(2)ofthissectiontheinsurer

shall, subject to theprovisionsof section109, beunder the same liability to the third

partyashewouldhavebeentotheinsuredexceptwheretheliabilityoftheinsurerto

theinsured–

(a)exceedsthe liabilityof the insuredtothethirdparty,nothing inthisPartshall

affecttherightoftheinsuredagainsttheinsurerinrespectofsuchexcess;and

Rightsofthirdpartiesagainst

insurers.

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(b)islessthantheliabilityoftheinsuredtothethirdparty,nothinginthisBillshall

affecttherightsofthethirdpartyagainsttheinsuredinrespectofthebalance.

(5)Theprovisionsofthissectionshall–

(a)notapplywhereacompanyiswoundupvoluntarilymerelyforthepurposesof

reconstructionorofamalgamationwithanothercompany;and

(b)applytootherinsurancesmadecompulsoryunderthisBill.

(6)Forthepurposesofsections78and79ofthisBilltheexpression“liabilitiesto

third parties”, in relation to a person insured under a policy of insurance, shall not

includeanyliabilityofthatpersoninthecapacityofinsurerundersomeotherpolicyof

insurance.

80._ (1) Any person against whom a claim is made in respect of any liability

requiredtobecoveredbyapolicyshall,ondemandbyoronbehalfofthepersonmaking

suchclaim,statewhetherornothewasinsuredinrespectofthatliabilitybyanypolicy

havingeffect for thepurposesof thisBillorwouldhavebeenso insured if the insurer

hadnotcancelledoravoidedthepolicyand,ifhewereorwouldhavebeensoinsured,

give such particularswith regard to that policy aswere specified in the certificate of

insuranceissuedtohim.

(2)Intheeventof–

(a)apersonbecomingbankruptormakingacompositionorarrangementwithhis

creditors;

(b)anorderbeingmadeundertheprovisionsofanylawrelatingtobankruptcyin

respectoftheestateofanyperson;or

(c)awinding-uporderbeingmadeoraresolutionforavoluntarywindingupbeing

passedwithrespecttoanycompanyorofareceiverormanagerofthecompany’s

businessorundertakingbeingdulyappointedorofpossessionbeingtaken,byoron

behalfoftheholdersofanydebenturessecuredbyafloatingcharge,ofanyproperty

comprised inor subject to thecharge, it shallbe thedutyof thebankruptdebtor,

personal representative of the deceased debtor and, as the case may be, of the

official assignee, trustee, liquidator, receiver,manager, or person in possession of

thepropertytogive,attherequestofanypersonclaiminginrespectof liabilityof

him, such information as may reasonably be required to ascertain whether any

rightshavebeentransferredtoandvestedinhimundertheprovisionsofthisBill.

(3) for the purpose of enforcing the right provided under subsection (2) of this

sectionandanycontractofinsuranceinsofarasitpurportseitherdirectlytoavoidthe

Dutytogiveinformationtothirdparties.

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contract or to alter the rights of the parties thereunder upon the giving of any such

information or otherwise to prohibit, prevent or limit the giving of such information

shallbeofnoeffect.

(4)Where the information given to any person in pursuance of the provisions of

subsection(2)ofthissectiondisclosesreasonablegroundsofbeliefthattherightsmay

have been transferred to him under the provisions of this Part against any particular

insurer,thatinsurershallbesubjecttothesamedutyasisimposedbysubsection(2)of

thissectiononthepersonsthereinmentioned.

(5) The duty imposed by this section to give information, shall include a duty to

allowallcontractsofinsurance,receiptsforpremiumsandotherrelevantdocumentsin

thepossession,powerorcontrolof thepersononwhomtheduty isso imposed, tobe

inspectedandcopiesthereoftobetaken.

(6)Anypersonwho,withoutreasonableexcuse,failstocomplywiththeprovisions

ofthissectionorwhowillfullyornegligentlymakesanyfalseormisleadingstatementin

replytoademandforinformationcommitsanoffenceunderthisBill.

81._Whereaperson insuredunderapolicyunder thisPartbecomesbankruptor

where such insured person being a company, a winding-up order has been made or

resolutionforavoluntarywinding-uphasbeenpassedwithrespecttothatcompany,no

agreementmadebetweentheinsurerandtheinsuredafterliabilityhasbeenincurredto

athirdpartyandafterthecommencementofthebankruptcyorthewinding-up,asthe

casemaybe,noranywaiver,assignmentorotherdispositionmadebyorpaymentmade

totheinsuredaftersuchcommencement,shallbeeffectivetodefeatoraffecttherights

transferredtoorvestedinthethirdpartyandsuchrightsshallbethesameasifnosuch

agreement,waiver,assignment,dispositionorpaymenthadbeenmade.

82._Where, under the provisions of this Part, a certificate of insurance has been

deliveredtothepersonbywhomapolicyhasbeeneffected,thehappeninginrelationto

anypersoninsuredbythepolicyofanyoftheeventsspecifiedinsubsections(1)or(2)

of section 107 notwithstanding anything contained in this Part, the liability of that

personas is required tobecoveredbyapolicyunder theprovisionsof thisPart, shall

not be affected and nothing in this section shall affect any right against the insurer

conferredunder theprovisions of sections79, 81 and82of thisBill on theperson to

whomtheliabilitywasincurred.

83._ (1)Any settlementmadeby an insurer in respect of a claimwhichmight be

madebyathirdpartyinrespectofanyliabilityasisrequiredtobecoveredbyapolicy

Certainsettlements

betweeninsurerandinsuredtobe

ofnoeffect

Bankruptcyofinsuredpersonnottoaffectcertain

claims

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issuedunder theprovisionsof thisPart shall not be validunless such thirdparty is a

partytosuchsettlement.

(2) A policy issued under the provisions of this Part shall remain in force and

availableforthirdpartiesnotwithstandingthedeathofanypersoninsuredundersuch

policyasifsuchinsuredpersonwerestillalive.

84._(1)Whereacertificateofinsurancehasbeendeliveredundertheprovisionsof

thisParttothepersonbywhomapolicyhasbeeneffectedandthepolicyiscancelledby

mutual consent or by virtue of any provision in the policy, the person towhom such

certificatewasdeliveredshall,within7daysofthecancellationofsuchpolicy,surrender

suchcertificate to the insureror if suchcertificatehasbeen lostordestroyed,makea

statutorydeclarationtothateffect.

(2) A person who contravenes the provisions of this section commits an offence

underthisPartandisliableonconvictiontoafinenotexceedingN25,000.00.

85._(1)Apersondrivingamotorvehicleonahighwayoronanypublicplaceshall,

onbeingrequiredbyalawenforcementofficer–

(a)givehisnameandaddressandthenameandaddressoftheownerofthemotor

vehicle;and

(b)producehiscertificateofinsuranceorinsurancecovernote.

(2) A person who contravenes the provisions of subsection (1) of this section

commitsanoffenceandisliableonconviction,toafinenotexceedingN25,000.00.

(3)Where, owing to the presence of amotor vehicle on a highway or any public

place,anaccidentoccurs involvingbodily injurytoanypersonthedriverof themotor

vehicleshallproducehiscertificateofinsuranceorcovernoteorcopyofsametoalaw

enforcement officer or to any person having reasonable grounds for requiring its

productionandifanysuchdriver,foranyreason,isunabletoproducehiscertificateof

insuranceorcovernote,heshallassoonaspossible,andnotlaterthan24hoursofthe

occurrence, report the accident and as soon as reasonably possible produce his

certificate of insurance or cover note to the police station nearest to the scene of the

accident.

(4) A person who contravenes the provision of subsection (3) of this section

commitsanoffenceandisliableonconviction,toafinenotexceedingN50,000.00.

(5)Theprovisionsof thissectionshallbe inaddition to,andnot inderogationof,

therelevantprovisionsoftheRoadTrafficLaws.

(6)Inthissection,theexpression“toproduceacertificateofinsurance”meansto

Furtherrightofthirdparties

againstinsurers.

Dutytosurrendercertificateoncancellationof

policy.

Certificatestobeproduced.

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produce for examination the relevant certificate of insurance or cover note that the

motorvehicleisnotbeingdrivenincontraventionoftheprovisionofthisPart.

86._Theownerofamotorvehicleshallgivesuchinformationasmayberequired

byalawenforcementofficerforthepurposeofdeterminingwhetherthemotorvehicle

is not being driven in contravention of the provisions of this Part on any occasion in

whichthedriverisrequiredtoproducehiscertificateand,anyownerwhofailstodoso

commitsanoffenceandisliableonconvictiontoafineofN25,000.00.

87._ (1) Where a person, for the purpose of obtaining a certificate of insurance

makesanystatement, eitheroralorwritten,which is falseormisleadingorwithholds

anymaterial information,suchpersonshall,unlessheproves to thesatisfactionof the

court thathe actedwithout any intent todeceive, commits anoffence and is liableon

conviction to a fine not exceeding N100,000.00 or to imprisonment for a period of 6

monthsortobothfineandimprisonment.

(2)Anypersonwho–

(a) forges, alters, defaces or mutilates any certificate of insurance or any other

documentissuedunderthisPart;

(b)usesor allows tobeusedbyanyotherpersonany forged, altered,defacedor

mutilatedcertificateofinsuranceoranyotherdocumentissuedunderthisPart;

(c)lendstoorborrowsfromanyotherpersonsocloselyresemblinganycertificate

ordocumentissuedundertheprovisionsofthisPart;

(d) makes or has in his possession any document so closely resembling any

certificateordocumentissuedundertheprovisionsofthisPartastobecalculated

todeceive;or

(e) issues a certificate of insurance or other document to be issued under the

provisionsofthisPart,commitsofanoffenceandisliableonconvictiontoafinenot

exceedingN200,000.00 or imprisonment for a termof 1 year or to both fine and

imprisonment.

88._InthisPart–

“drivers licence” means a licence to drive a motor vehicle granted under the

provisionsoftheRoadTrafficActorlawapplicableinaStateinNigeria;

“highway”or“publicplace”includesanyroadway,carpark,pathorplacetowhich

thepublichaveaccess;

“liabilitycoveredbythetermsofthepolicy”meansaliabilitywhichiscoveredby

thepolicyorwhichwouldbecoveredwereitnotthattheinsurerisentitledtoavoid

Dutyofowner.

Falsestatements,forging,etc.certificates.

InterpretationinthisPart.

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orcancelorhasavoidedorcancelledthepolicy;

“material”meansofsuchanatureastoinfluencethejudgmentofaprudentinsurer

indeterminingwhetherhewillaccepttheriskand, ifso,atwhatpremiumandon

whatconditions;

“motorcycle” or “tricycle”means amotor vehicledesigned to travel onnotmore

thanthreewheelsandincludesacombinationofmotorcycleandsidecar;

“motor-vehicle” means a vehicle propelled by mechanical power other than a

vehicleconstructedtorunonrailsandincludesamotor-cycleandtricycle;

“owner”inrelationtoamotorvehiclewhichissubjectofahiringorhirepurchase

agreementmeansthepersoninpossessionofthevehicleundertheagreement;

“third party” means any person other than the insurer and the insured who

sustainsinjuryorpropertydamageasaresultofanaccidentcausedbyorinvolving

amotorvehicle inuseorunder the controlof apersonwhose liability is covered

underapolicy;and

“use” with its grammatical variations and cognate expressions means use on a

highwayorotherpublicplaceandwhereanywordorexpressionusedinthisBillis

defined in the Road Traffic laws, such word or expression, unless the context

otherwise requires, shall bear in this Bill themeaning assigned to it in the Road

Trafficlaws.

PARTXII–ECOWASBROWNCARDSCHEME

89._ (1) Notwithstanding anything to the contrary contained in any other

enactment and in accordance with the provisions of Article 5 of the Protocol on the

ECOWASBROWNCARDSCHEME(“theScheme”)thereisestablishedaNationalBureau

forthepurposeoftheProtocol(inthisBillreferredtoas“theBureau”).

(2)TheBureaushall–

(a)beabodycorporatewithperpetualsuccession;and

(b)haveacommonsealwithpowertosueandbesuedinitscorporatename.

(3)TheBureaushallbemanagedbyaboardofdirectors(hereinafterreferredtoas

“theManagementBoard”)comprising–

(a)aChairman,tobeappointedbytheCommissionwhoshallnotbebelowtherank

ofadirector;

(b) 3 representatives ofmotor underwriting companies that aremembers of the

BureauelectedatageneralmeetingoftheBureau;

(c)arepresentativeoftheGoverningCounciloftheNigerianInsurersAssociation;

EstablishmentoftheNationalBureauforthepurposeoftheProtocolontheECOWASBrownCardScheme.

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and

(d)2personsrepresentingthepublictobeappointedbytheCommission.

(4)ThetenureofofficeandprocedureformeetingsoftheManagementBoardshall

beasprescribedbytheCommission.

(5)TheBureaushall–

(a) be charged with responsibility for issuing ECOWAS Brown Cards to motor

insurersasrequiredundertheProtocol;

(b)handleNigeria’sfinancialandothercommitmentsundertheProtocol;

(c) be the managers of insurance operations against liability risks in respect of

motorvehicleaccidents;

(d)settleclaimsarisingfromaccidentsinvolvingholdersofECOWASBrownCards

issuedbytheBureauinanyWestAfricancountryundertheScheme;

(e)handleclaimsarisingfromaccidentscausedinNigeriabyholdersoftheBrown

CardsissuedbytheBureauofotherparticipatingcountries;and

(f) enter into agreementswithNigerian insurerswhomay apply to participate in

theSchemeasmembersoftheBureau.

(6) The participating members shall make contributions towards the operating

expensesoftheBureauandprovidetheBureauwithsuchguaranteesastheBureaumay

require.

(7) An insurer shall not participate in the Scheme unless it has entered into an

agreementwiththeBureauinaccordancewiththeprovisionsofsubsection(5)(f)ofthis

section.

90._(1)TheBureauestablishedundersection89ofthisBillshallbesubjecttoall

the obligations and liabilities towhich the formerBureauwas subject to immediately

beforethecommencementofthisBillandallotherpersonsshallhavethesamerights,

powersandremediesagainsttheBureauestablishedbythisBillastheyhadagainstthe

BureauimmediatelybeforethecommencementofthisBill.

(2)Anyproceedingor causeof actionpendingorexisting immediatelybefore the

commencement of this Bill by or against the former Bureau in respect of any right,

interest,obligationor liabilityofthatBureaumaybecontinuedor,asthecasemaybe,

commencedandanydeterminationofa courtof law, tribunalorotherCommissionor

personmaybe enforcedby or against theBureau establishedby thisBill to the same

extent that such proceeding, cause of action or determination might have been

continued,commencedorenforcedbyoragainsttheBureauasifthisBillhadnotbeen

Savingsandtransitionalprovisions

pertainingtotheBureau.

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made.

(3) All assets, funds, resources and other movable property which, immediately

beforethecommencementofthisBillwerevestedintheformerBureaushallbevested

intheBureauestablishedbysection89ofthisBill.

91._TheBureauestablishedbythisBillshallbecompetenttoappointaSecretary

andotherofficersasmaybenecessaryfortheadministrationoftheBureau.

92._ There is established a Fund to be known as the Road Safety and Accident

Victims

CompensationFund (hereinafter referred to as “theFund”) intowhich shall bepaid3

percentofthenetpremiumreceivedbyeveryinsurerinrespectof insuranceofmotor

vehicles.

93._ (1) There is established for the Fund a Road Safety and Accident Victims

Compensation Committee (in this Bill referred to as “the Compensation Committee”)

responsibleforover-seeingthemanagementoftheFund.

(2)TheCompensationCommitteeshallconsistof–

(a) a chairman representing the insurance industry appointed by theMinister on

therecommendationoftheCommission.

(b) 3 persons appointed by the Commission one of whom shall be a medical

practitionerwithcognateexperienceinorthopedicortraumamedicine;

(c)2representativesoftheCommission;

(d)arepresentativeoftheFederalRoadSafetyCorps;

(e)arepresentativeoftheNigeriaPoliceForce;

(f)apersontobeappointedbytheStateTrafficAgenciesonrotationalbasisamong

theStatesoftheFederation;and

(g)arepresentativeoftheFederalMinistryofFinancefromthedirectoratecadre.

(3)Theamountdue fromevery insurerpursuant to subsection (1)of this section

shallbepaidquarterly to theFundwhichshallbeadministeredanddisbursed,on the

recommendationoftheCompensationCommittee,bytheCommission.

(4)TheCommissionshallontherecommendationoftheCompensationCommittee

administeranddisbursemoniesaccruingtotheFundasfollows–

(a)30percenttotheFederalRoadSafetyCommissionasgrantfortheprocurement

ofequipment;

(b) 20 per cent to the Nigeria Police Force as grant for the procurement of

equipment; (c) 10 per cent to road-traffic agencies for the procurement of

AppointmentofstaffbytheBureau.

RoadSafetyandAccidentVictimsCompensation

Fund.

RoadSafetyandAccidentVictimsCompensationCommittee.

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equipment;

(d) 35 per cent into a separate fund out of which the Commission shall pay

compensation, in accordance with regulations made by the Commission, to any

person in respect of death or bodily injury following a motor vehicle accident

causedbyanuninsuredvehicleoranunidentifieddriverandexpensesreasonably

incurredbyanyhospitalknowntohavetreatedanypersoninvolvedinanymotor

accident by an uninsured vehicle or unidentified driver provided such hospital

expensesshallnotexceedthesumofN250,000.00foranypersontreated;and

(e)notmorethan5percentascostofadministrationandmanagementoftheFund.

(5)Aninsurerwhodefaultsinmakingpaymentasrequiredundersubsection(1)of

thissectionisliabletoapenaltyofasumequalto5timestheamountpayable,

Providedthatpersistentnon-compliancewiththerequirementofsubsection(1)of

this section shall be a ground for suspension of authorization to underwrite motor

insurancepoliciesbytheCommission.

(6) Subject to the approval of the Minister, on the recommendation of the

Commission, the percentage contributions stipulated in subsection (4) of this section

maybereviewedevery5yearsafterthecommencementofthisBill.

94._ Any person who is found guilty of an offence under this Part for which no

specific penalty is provided is liable in respect of a first conviction, to a fine of

N50,000.00orto6monthsimprisonmentortobothfineandimprisonmentandinthe

caseofasecondorsubsequentconvictiontoafineofN100,00000orto imprisonment

foramaximumtermof12monthsortobothfineandimprisonment.

95._ (1)Where any claim referred tounder thisPart andPartXI arises out of an

accident involvingoneormorevehicles, it shall notbenecessary, if there is sufficient

evidence of proof of loss or damage, for any claimant to report and deliver a police

reporttotheinsurer,exceptdeathoforseriousbodilyinjurytoapersonisinvolved.

(2)Withoutprejudicetoanyothermodeofproof,itissufficientevidenceofproofof

lossordamageforthepurposeofthissection,where–

(a)onlyoneperson is involved intheaccident, thepersondeliversastatementof

thefactstotheinsurerconcernedtogetherwithastatementofaneyewitnesstothe

accident,ifany;or

(b) more than one person is involved in the accident, each person delivers a

statementofthefactstotheinsurerorinsurersconcernedandtheallegedfactsdo

notdifferinanymaterialparticular.

GeneralpenaltyunderthisPart.

Policereportinmotoraccidents

cases.

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(3)Nothinginthissectionshallbeconstruedasimplyingthatapolicereportisnot

requiredinthecaseofclaimsarisingfromcartheft.

(4) InParts XI andXII “insurer” includes an insuranceunderwriter registeredor

licensedunderthelawsandregulationsofaWestAfricancountrythatisparticipatingin

the Motor Vehicles (Third Party Liability Insurance) ECOWAS Brown Card Scheme

relatingtoamotorvehiclethirdpartyliabilityinsurance.

PARTXIII–AMALGAMATIONANDTRANSFERS

96._ (1)Subject to theprovisionsof this section, an insurer shall not amalgamate

with, transfer to or acquire from any other insurer any insurance business or part

thereof,withoutthepriorapprovaloftheCommission.

(2)TheCommissionmay,beforegrantinganapprovalundersubsection(1)ofthis

section, call for such statements, documents and other information as may be

prescribed,fromtimetotime,bytheCommission.

(3)Whereaclassofinsurancebusinessisintendedtobeamalgamatedwithanother

insurance business or an insurer or the class of insurance business is intended to be

transferred or acquired inwhole or in part, the insurers concerned shall apply to the

Courttosanctiontheproposedamalgamationortransferasthecasemaybe.

(4)PriortomakinganapplicationtotheCommissionforapprovalortotheCourtto

sanctionanytransactionunderthissection,noticeofintentiontomaketheapplication

together with a statement of the nature of the amalgamation, transfer or acquisition

shall,atleast3monthsbeforetheapplicationismade,bepublishedinatleast3national

newspapersandfiledwiththeCommission.

(5)Withinthe3monthsreferredtoinsubsection(4)ofthissection,certifiedcopies

of eachof the followingdocuments shall be kept open for inspectionby themembers

andpolicyholdersattheprincipalandbranchofficesoftheinsurersconcerned–

(a) a draft of the proposed agreement or deed to effect the amalgamation,

acquisitionortransfer;

(b)theauditor’sreportinrespectoftheinsurancebusinessofeachoftheinsurers

concerned,preparedintheprescribedform;

(c)theactuarialreportsinrespectoftheinsurancebusinessofeachoftheinsurers

concerned,preparedintheprescribedform;and

(d)areportontheproposedamalgamation,transferoracquisitionpreparedbyan

independentactuary.

(6)Thedeedoragreementunderwhichanamalgamation,transferoracquisitionas

Procedureforamalgamation.

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the casemay be, is proposed to be effected, shall be available for inspectionwithout

paymentofanyfeebypolicyholdersandshareholdersatallreasonabletimesinallthe

offices of the insurers in Nigeria, for a period of 21 days after the publication of the

noticeinthenewspapers.

(7)TheCommissionorCourtmayapproveorsanctiontheamalgamation,transfer

or acquisition if satisfied that no sufficient objection has been established by those

entitledtobeheard.

(8)Forthepurposesofsubsection(7)ofthissection,itshallbesufficientobjection

where it appears to theCommissionorCourt thatpolicyholders representingnot less

than one-fifth of the total number insured by any of the insurers carrying on the

insurancebusiness concerned, dissent from the amalgamation, transfer or acquisition,

asthecasemaybe.

(9)Whereanamalgamation,transferoracquisitionunderthissectionisapproved

by theCommission, apolicyholder shallnotbe regardedashavingabandoneda claim

whichhewouldhavehadagainst theoriginal insureror the insurer thathasaccepted

theliabilityoftheoriginalinsurer.

(10) A policyholder who abandons his claim saved under subsection (9) of this

sectionshallhave theright tocancelhiscontract, inwhichcaseheshallbeentitled to

claimtheportionofpremiumcorrespondingtotheunexpiredtermof therisk insured

byhimortothemathematicalreserve,inthecaseoflifeassurance.

(11)Anyinsurerfromwhomthebusinessistransferredshallnotbere-registered

to undertake the same category/class or, as the case may be, classes of insurance

business until after the expiration of 5 years from the date of the approval by the

CommissionorsanctionoftheCourt.

97._Within3monthsafterthedateofcompletionoftheamalgamation,transferor

acquisitionof insurancebusinessunder section95of thisBill, the insurer carryingon

the amalgamated business or to whom the business is transferred or by whom the

business isacquiredas thecasemaybe, shall furnish, induplicate, to theCommission

suchdocumentsastheCommissionmayprescribefromtimetotime.

PARTXIV–WINDINGUP

98._(1)WherethelicenceofaninsuranceoperatoriscancelledunderthisBill,the

Commissionmay,unlesstheinsuranceoperatorisabodycorporatebeingwoundupby

theCourt,appointareceiverorprovisionalliquidatorto–

(a)immediatelytakechargeofinsuranceoperator’sassets;

Postamalgamation

returns.

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(b)collectandgatherinallotherassetsduetotheinsuranceoperator;and

(c) administer the assets as expeditiously as possible for the benefit of the

policyholders,clientsandcreditorsoftheinsuranceoperator;

(2) The Commission or the appointed receiver or provisional liquidator after his

appointmentmayapplytotheCourttowindupthebusinessoftheinsuranceoperator

and for thispurpose, theprovisionsof theCompaniesandAlliedMattersAct,CapC20

Laws of the Federation of Nigeria, 2004 relating to winding-up of companies by the

Courtshall,subjecttotheprovisionofthisBill,apply.

(3)Thereceiverorprovisional liquidatormay, immediatelyafterhisappointment

freezetheaccountsof the insuranceoperatorandshall takechargeof itsmanagement

andcontrol.

(4) The liquidation fee payable to the liquidator shall be determined by the

Commission.

(5)Notwithstanding the provisions of the Companies andAlliedMatters Act, Cap

C20LawsoftheFederationofNigeria,2004oranyotherenactment,thefollowingorder

of priority shall apply in the settlement of debts owed by a failed insurance operator

beingwoundup–

(a)liquidationfeesandexpenses;

(b)policyholders;

(c)securedcreditors;

(d)othercreditors;

(e)staff;

(f)shareholdersanddirectors.

(6)Whereinanyactionchallenging–

(a)thecancellationofthelicenceofaninsuranceoperator;

(b)aPetitionforwindinguptheaffairsofaninsuranceoperator;or

(c) the appointmentof a liquidator, an application for an interimor interlocutory

injunction is brought against the Commission or the liquidator appointed by it

seeking to restrain the Commission or the appointed liquidator from paying

policyholders of a failed insurance operator, the party applying shall put the

Commissionortheliquidatoronnotice.parte

(7)TheCommissionorliquidatorappointedbytheCommissionshallcauseanotice

tobepublishedinanationalnewspaperorothernewsmediarequiringallpolicyholders

and creditors with the failed insurance operator under liquidation to forward their

Appointmentofreceiverorprovisionalliquidator.

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claimstotheCommissionortheliquidator.

(8)TheCommissionorliquidatorofthefailedinsuranceoperatorshallhavepower

to–

(a)realizetheassetsofthefailedinsuranceoperator;

(b) enforce the individual liability of the shareholders and directors of the failed

insuranceoperator;and

(c)winduptheaffairsofthefailedinsuranceoperatorasprovidedunderthisAct.

(9) The provisions of the Limitation Law of a State or the Limitation Act of the

FederalCapitalTerritoryshallnotapplytoanydebtowedtoafailingorfailedinsurance

operator.

99._ A petition for the winding-up of an insurer may be presented to the Court

either–

(a) subject to the approval of the Commission by not less than 50 policyholders,

eachofwhomholdsapolicythathasbeeninforcefornotlessthan3years,onthe

groundsspecifiedinsection408and409oftheCompaniesandAlliedMattersAct,

CapC20LawsoftheFederationofNigeria,2004;or

(b)bytheCommissiononanyofthefollowinggroundsthatthe–

(i) licenceof the insurerhasbeencancelled inaccordancewith section8of

thisBill,or

(ii)insurercannotbereviveddespitetheinterventionoftheCommission.

100._NotwithstandingtheprovisionsoftheCompaniesandAlliedMattersAct,Cap

C20LawsoftheFederationofNigeria,2004oranyotherenactment,noinsurerwhich

transacts life insurance business shall voluntarilywind-up its business except for the

purposeofeffectinganamalgamation,transferoracquisitionunderthisBill.

101._ (1)TheCommissionor receiveror liquidator appointed for thewinding-up

shall, unless the Court otherwise orders, carry on the life insurance business of the

insurer with a view to its being transferred, as a going concern, to another insurer,

whetheranexistinginsureroraninsurerregisteredforthatpurpose.

(2) In carrying on the business as specified in subsection (1) of this section, the

Commission or receiver or liquidator appointed may agree to the variation of any

contractofinsuranceinexistencewhenthewinding-uporderismade,provideditshall

notaffectnewcontractsofinsurance.

(3) The Court may, subject to such conditions as it may determine, reduce the

amountofthecontractsmadebytheinsurerinthecourseofcarryingonlifeinsurance

Petitionforwindingupinothercases.

Prohibitionofvoluntarywinding

up.

Continuationoflifeinsurancebusinessinliquidation.

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business.

(4) The Commission or the Court may at any time on the application of the

liquidator,appointanindependentactuarytoinvestigatethelife insurancebusinessof

theinsurer.

(5)TheactuaryshallreporttotheCommissionthedesirabilityorotherwiseofthe

life insurancebusinessbeingcontinuedandonanyreduction in thecontractsmade in

the course of carrying on that business that may be necessary for its successful

continuation.

(6) The Commission or the liquidator may petition the Court in the name or on

behalfoftheinsurerasprovidedinthisBill.

(7) Notwithstanding anything to the contrary in a life insurance contract, upon

cancellation of the registration of a life insurance company, the requirement for the

paymentofpremiuminthecontractshallabateuntil the life insurancebusinessofthe

companyistransferredtoanotherlifeinsurancecompanypursuanttotheprovisionsof

thisBill,

Providedthatwhere the lifepolicyholderelects tocontinue topaysuchpremium,

the receiver or liquidator appointed to manage the life insurance company whose

registrationhasbeencancelledpursuanttothisBill,shallensurethecollectionofsuch

premiums.

102._Notwithstandingtheprovisionsofanyotherlaw,nopolicyholder’sfundsor

assetskeptwithaninsurershallbeseizedorsubjectofanyexecutionofjudgmentdebt

orbeusedtomeettheclaimsofanyoftheinsurer’screditorsintheeventofliquidation,

windinguporotherwisecessationofbusinessoftheinsurer.

PARTXV–MARINEINSURANCE

103._Acontractofmarineinsuranceisacontractoftheutmostgoodfaithwhereby

the insurer undertakes to indemnify the assured, in the manner and to the extent

thereby agreed, against marine losses, that is to say, the loses incident to marine

adventure.

104._(1)Acontractofmarineinsurancemay,byitsexpressterms,orbyusageof

trade,beextendedsoas toprotect theassuredagainst losseson inlandwatersorany

landriskwhichmaybeincidentaltoanyseavoyage.

(2)Whereashipinthecourseofbuilding,orthelaunchofaship,oranyadventure

analogoustoamarineadventure,iscoveredbyapolicyintheformofamarinepolicy,

theprovisionsofthisPart, insofarasapplicable,shallapplythereto;but,exceptasby

ExemptionofInsuranceFundsfromLiquidationorGarnishee.

Marineinsurancedefined.

Mixedseaandlandrisks.

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thissectionprovided,nothinginthisPartshallalteroraffectanyruleoflawapplicable

to any contract of insurance other than a contract of marine insurance as defined in

section103ofthisBill.

105._(1)SubjecttotheprovisionsofthisPart,everylawfulmarineadventuremay

bethesubjectofacontractofmarineinsurance.

(2)Inparticular,thereisamarineadventurewhere–

(a)anyship,goodsorothermoveablesareexposedtomarineperils,suchproperty

beingreferredtointhisPartas“insurableproperty”;

(b)theearningoracquisitionofanyfreight,passagemoney,commission,profitor

otherpecuniarybenefit,orthesecurityforanyadvances,loan,ordisbursements,is

endangeredbytheexposureofinsurablepropertytomaritimeperils;and

(c)anyliabilitytoathirdpartymaybeincurredbytheownerof,orotherpersons

interestedinorresponsiblefor,insurableproperty,byreasonofmaritimeperils.

106._(1)Everycontractofmarineinsurancebywayofgamingorwageringisvoid.

(2) A contract of marine insurance shall be deemed to be a gaming or wagering

contract,where–

(a)theassuredhasnoinsurableinterestasdefinedbythisPart,andthecontractis

enteredintowithnoexpectationofacquiringsuchaninterest;or

(b)thepolicyismade“interestornointerest”or“withoutfurtherproofofinterest

thanthepolicyitself”,or“withoutbenefitofsalvagetotheinsurer”orsubjecttoany

otherliketerm,

Provided that, where there is no possibility of salvage, a policy may be effected

withoutbenefitofsalvagetotheinsurer.

107._ (1) Subject to the provisions of this Part every person has an insurable

interestwhoisinterestedinamarineadventure.

(2) Inparticular aperson is interested in amarineadventurewherehe stands in

any legalorequitablerelation to theadventureor toany insurablepropertyatrisk in

consequenceofwhichhemaybenefitbythesafetyorduearrivalofinsurableproperty,

ormaybeprejudicedbyitsloss,ordamagethereto,orbythedetentionthereof,ormay

incurliabilityinrespectthereof.

108._(1)Theassuredmustbeinterestedinthesubjectmatterinsuredatthetime

ofthelossthoughheneednotbeinterestedwhentheinsuranceiseffected:

Providedthatwherethesubjectmatterisinsured“lostornotlost”,theassuredmay

Marineadventureandmaritime

perils.

Avoidanceofwageringor

gamingcontracts.

Insurableinterest.

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recoveralthoughhemaynothaveacquiredhisinterestuntilaftertheloss,unlessatthe

time of effecting the contract of insurance the assuredwas aware of the loss, and the

insurerwasnot.

(2)Where the assured has no interest at the time of the loss he cannot acquire

interestbyanyactorelectionafterheisawareoftheloss.

109._ (1) A defeasible interest shall be insurable, as also shall be a contingent

interest.

(2) Inparticular,where thebuyerofgoodshas insured them,hehasan insurable

interest,notwithstandingthathemight,athiselection,haverejectedthegoodsorhave

treatedthemasattheseller’srisk,byreasonofthelatter’sdelayinmakingdeliveryor

otherwise.

110._Apartialinterestofanynatureshallbeinsurable.

111._Theinsurerunderacontractofmarineinsurancehasaninsurableinterestin

hisrisk,andmayre-insureinrespectofit;butunlessthepolicyotherwiseprovides,the

originalassuredshallhavenorightorinterestinrespectofsuchreinsurance.

112._Thelenderofmoneyonbottomryorrespondentialhasaninsurableinterest

inrespectoftheloan.

113._Themasteroranymemberofthecrewofashiphasaninsurableinterestin

respectofhiswages.

114._ In the case of advance freight, the person advancing the freight has an

insurableinterest,insofarassuchfreightisnotpayableincaseofloss.

115._Theassuredhasaninsurableinterest inthechargesofanyinsurancewhich

hemayeffect.

116._ (1)Where the subject matter insured is mortgaged, the mortgagor has an

insurableinterestinthefullvaluethereof,andthemortgageehasaninsurableinterest

inrespectofanysumdueortobecomedueunderthemortgage.

(2)Amortgagee,consignee,orotherpersonhavinganinterestinthesubjectmatter

insuredmayinsureonbehalfandforthebenefitofotherpersonsinterestedaswellas

forhisownbenefit.

(3)Theownerofinsurablepropertyhasaninsurableinterestinrespectofthefull

valuethereof,notwithstandingthatsomethirdpersonmayhaveagreed,orbeliable,to

indemnifyhimincaseofloss.

117._ (1) When the assured assigns or otherwise parts with his interest in the

subjectmatterinsured,heshallnottherebytransfertotheassigneehisrightsunderthe

Wheninterestattaches.

Defeasibleorcontingentinterest.

Partialinterest.

Reinsurance.

Bottomry

Master’sandseamen’swages.

Advancefreight.

Chargesofinsurance.

Quantumofinterest.

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contractofinsurance,unlessthereisanexpressorimpliedagreementwiththeassignee

tothateffect.

(2)Nothinginthissectionshallaffecttransmissionofinterestbyoperationoflaw.

118._Subjecttotheexpressprovisionorvaluationinthepolicy,theinsurablevalue

ofthesubjectmatterinsuredshallbeascertainedasfollows,ininsuranceon–

(a) ship, the insurable value which, in the case of a steamship, includes also the

machinery,boilers,andcoalsandenginestoresifownedbytheassured,and,inthe

case of a ship engaged in a special trade, the ordinary fittings requisite for that

trade,isthevalueatthecommencementoftherisk,oftheship,includingheroutfit,

provisions and stores for the officers and crew, money advanced for seamen’s

wages,andotherdisbursement(ifany)incurredtomaketheshipfitforthevoyage

or adventure contemplated by the policy plus the charges of insurance upon the

whole;

(b) freight, whether paid in advance or otherwise, the insurable value is gross

amountoffreightattheriskoftheassured,plusthechargesofinsurance;

(c) goods or merchandise, the insurable value is the prime cost of the property

insured, plus the expenses of and incidental to shipping and the charges of

insuranceuponthewhole;and

(d)anysubjectmatter,theinsurablevalueistheamountattheriskoftheassured

whenthepolicyattaches,plusthechargesofinsurance.

119._ (1)Beforeacontractof insuranceisenteredinto, the insuredmustmaketo

theinsurerafairpresentationoftherisk.

(2)Thedutyimposedbysubsection(1)isreferredtointhisBillas“thedutyoffair

presentation”.

(3)Afairpresentationoftheriskisone–

(a)whichmakesthedisclosurerequiredbysubsection(4);

(b)whichmakesthatdisclosureinamannerwhichwouldbereasonablyclearand

accessibletoaprudentinsurer;and

(c) in which every material representation as to a matter of fact is substantially

correct,andeverymaterialrepresentationastoamatterofexpectationorbeliefis

madeingoodfaith.

(4)Thedisclosurerequiredisasfollows,exceptasprovidedinsubsection(5)—

(a)disclosureofeverymaterialcircumstancewhichtheinsuredknowsoroughtto

know,or

Assignmentofinterest.

Measureofinsurablevalue.

Thedutyoffairrepresentation.

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(b) failing that, disclosurewhich gives the insurer sufficient information to put a

prudentinsureronnoticethatitneedstomakefurtherenquiriesforthepurposeof

revealingthosematerialcircumstances.

(5) In the absence of enquiry, subsection (4) does not require the insured to

discloseacircumstanceif–

(a)itdiminishestherisk;

(b)theinsurerknowsit;

(c)theinsureroughttoknowit;

(d)theinsurerispresumedtoknowit;or

(e)itissomethingastowhichtheinsurerwaivesinformation.

(6) Sections 120 (1) to (6) make further provision about the knowledge of the

insuredandoftheinsurer,andsection127containssupplementaryprovision.

120._(1)Thissectionprovidesforwhataninsuredknowsoroughttoknowforthe

purposesofsection119(4)(a).

(2)Aninsuredwhoisanindividualknowsonly–

(a)whatisknowntotheindividual;and

(b)what is known to one ormore of the individualswho are responsible for the

insured’sinsurance.

(3)Aninsuredwhoisnotanindividualknowsonlywhatisknowntooneormoreof

theindividualswhoare–

(a)partoftheinsured’sseniormanagement;or

(b)responsiblefortheinsured’sinsurance.

(4)Aninsuredisnotbyvirtueofsubsection(2)(b)or(3)(b)ofthissectiontakento

knowconfidentialinformationknowntoanindividualif–

(a)theindividualis,orisanemployeeof,theinsured’sagent;and

(b)theinformationwasacquiredbytheinsured’sagent(orbyanemployeeofthat

agent)throughabusinessrelationshipwithapersonwhoisnotconnectedwiththe

contractofinsurance.

(5) For the purposes of subsection (4) the persons connected with a contract of

insuranceare–

(a)theinsuredandanyotherpersonsforwhomcoverisprovidedbythecontract,

and

(b) if the contract re-insures risks covered by another contract, the personswho

are,byvirtueofthissubsection,connectedwiththatothercontract.

Knowledgeofinsured.

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(6)Whetheranindividualornot,aninsuredoughttoknowwhatshouldreasonably

have been revealed by a reasonable search of information available to the insured,

whetherthesearchisconductedbymakingenquiriesorbyanyothermeans.

(7)Insubsection(6)“information” includesinformationheldwithintheinsured’s

organisationorbyanyotherperson,suchastheinsured’sagentorapersonforwhom

coverisprovidedbythecontractofinsurance.

(8)Forthepurposesofthissection–

(a)“employee”, inrelationtothe insured’sagent, includesanyindividualworking

fortheagent,whateverthecapacityinwhichtheindividualacts;

(b) an individual is responsible for the insured’s insurance if the individual

participates on behalf of the insured in the process of procuring the insured’s

insurance(whethertheindividualdoessoastheinsured’semployeeoragent,asan

employeeoftheinsured’sagentorinanyothercapacity);and

(c)“seniormanagement”meansthoseindividualswhoplaysignificantrolesinthe

making of decisions about how the insured’s activities are to be managed or

organised.

121._(1)Forthepurposesofsection119(5)(b),aninsurerknowssomethingonlyif

itisknowntooneormoreoftheindividualswhoparticipateonbehalfoftheinsurerin

thedecisionwhether to take therisk,and ifsoonwhat terms(whether the individual

doessoastheinsurer’semployeeoragent,asanemployeeoftheinsurer’sagentorin

anyothercapacity).

(2)Forthepurposesofsection119(5)(c),aninsureroughttoknowsomethingonly

if–

(a) an employee or agent of the insurer knows it, and ought reasonably to have

passedontherelevantinformationtoanindividualmentionedinsubsection(1);or

(b) the relevant information is held by the insurer and is readily available to an

individualmentionedinsubsection(1).

(3)For thepurposesof section119(5)(d),an insurer ispresumed toknowthings

which–

(a)arecommonknowledge,and

(b)an insureroffering insuranceof theclass inquestion to insured in the fieldof

activityinquestionwouldreasonablybeexpectedtoknowintheordinarycourseof

business.

122._ (1) For the purposes of sections 119 to 121, references to an individual’s

Knowledgeofinsurer.

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knowledge include not only actual knowledge, but also matters which the individual

suspected,andofwhichthe individualwouldhavehadknowledgebut fordeliberately

refrainingfromconfirmingthemorenquiringaboutthem.

(2)NothinginthisPartaffectstheoperationofanyruleoflawaccordingtowhich

knowledgeofafraudperpetratedbyanindividual(“F”)eitherontheinsuredoronthe

insurerisnottobeattributedtotheinsuredortotheinsurer(respectively),where–

(a) if the fraud is on the insured, F is anyof the individualsmentioned in section

120(2)(b)or(3),or

(b) if the fraud is on the insurer, F is anyof the individualsmentioned in section

121(1).

123._ (1)A fairpresentationneednotbecontained inonlyonedocumentororal

presentation.

(2)Theterm“circumstance”includesanycommunicationmadeto,orinformation

receivedby,theinsured.

(3)Acircumstanceorrepresentationismaterialifitwouldinfluencethejudgment

ofaprudentinsurerindeterminingwhethertotaketheriskand,ifso,onwhatterms.

(4)Examplesofthingswhichmaybematerialcircumstancesare–

(a)specialorunusualfactsrelatingtotherisk;

(b)anyparticular concernswhich ted the insured to seek insurancecover for the

risk;and

(c)anythingwhichthoseconcernedwiththeclassofinsuranceandfieldofactivity

in questionwould generally understand as being something that should be dealt

withinafairpresentationofrisksofthetypeinquestion.

(5)Amaterialrepresentationissubstantiallycorrectifaprudentinsurerwouldnot

considerthedifferencebetweenwhatisrepresentedandwhatisactuallycorrecttobe

material.

(6) A representation may be withdrawn or corrected before the contract of

insuranceisenteredinto.

124._(1)Theinsurerhasaremedyagainsttheinsuredforabreachofthedutyof

fair

presentationonlyiftheinsurershowsthat,butforthebreach,theinsurerwould–

(a)nothaveenteredintothecontractofinsuranceatall;or

(b)havedonesoonlyondifferentterms.

(2)Abreachforwhichtheinsurerhasaremedyagainsttheinsuredisreferredtoin

Knowledge:general.

Supplementary.

Remediesforbreach.

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thisBillasa“qualifyingbreach”.

(3)Aqualifyingbreachiseither–

(a)deliberateorreckless,or

(b)neitherdeliberatenorreckless.

(4)Aqualifyingbreachisdeliberateorrecklessiftheinsured–

(a)knewthatitwasinbreachofthedutyoffairpresentation;or

(b)didnotcarewhetherornotitwasinbreachofthatduty.

(5)Itisfortheinsurertoshowthataqualifyingbreachwasdeliberateorreckless.

125._(1)Anyruleoflawpermittingapartytoacontractofinsurancetoavoidthe

contracton thegroundthat theutmostgood faithhasnotbeenobservedby theother

partyisabolished.

(2)Anyruleoflawtotheeffectthatacontractofinsuranceisacontractbasedon

theutmostgoodfaithismodifiedtotheextentrequiredbytheprovisionsofthisPart.

126._ (1) A representation is material which would influence the judgment of a

prudentinsurerinfixingthepremium,ordeterminingwhetherhewilltaketherisk.

(2)Arepresentationmaybeeitherarepresentationastoamatteroffact,orastoa

matterofexpectationorbelief.

(3)Arepresentationastoamatteroffactistrue,ifitissubstantiallycorrect,thatis

tosay,ifthedifferencebetweenwhatisrepresentedandwhatisactuallycorrectwould

notbeconsideredmaterialbyaprudentinsurer.

(4)Arepresentationas toamatterofexpectationorbelief is true, if it ismade in

goodfaith.

(5) A representation may be withdrawn or corrected before the contract is

concluded.

(6)Whetheraparticularrepresentationismaterialornotis,ineachcase,aquestionof

fact.

127._ A contract ofmarine insurance shall be deemed to be concludedwhen the

proposaloftheassuredisacceptedbytheinsurer,whetherthepolicyisthenissuedor

not;and,forthepurposeofshowingwhentheproposalwasaccepted,referencemaybe

madetothesliporcoveringnoteorothercustomarymemorandumofthecontract.

128._ (1) Subject to the provisions of any statute, a contract ofmarine insurance

shall not be admissible in evidence unless it is embodied in a marine policy in

accordancewiththeformintheSecondScheduletothisBillortothelikeeffect.

(2)Thepolicymaybeexecutedandissuedeitheratthetimewhenthecontract is

Goodfaith.

Representationpending

negotiationofcontract.

Whencontractdeemedtobeconcluded.

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concluded, or afterwards; and subject to the provisions of this Part and unless the

context of the policy otherwise requires, the terms and expressionsmentioned in the

SecondScheduletothisBillshallbeconstruedashavingthescopeandmeaninginthat

Scheduleassignedtothem.

129._Amarinepolicyshallspecifythenameoftheinsured,orofsomepersonwho

effectstheinsuranceonhisbehalf.

130._ (1)Amarinepolicy shall, be signedbyoronbehalfof the insurer,or if the

insurerisacorporation,thecorporatesealmaybesufficient.

(2) A policy is subscribed by or on behalf of two or more insurers, each

subscription,unlessthecontrarybeexpressed,shallconstituteadistinctcontractwith

theassured.

(3) Nothing in this section shall be construed as requiring the subscription of a

corporationtobeunderseal.

131._ (1) The subjectmatter insured shall be designated in amarine policywith

reasonable certainty; but the nature and extent of the interest of the assured in the

subjectmatterinsuredneednotbespecifiedinthepolicy.

(2)Wherethepolicydesignatesthesubjectmatterinsuredingeneralterms,itshall

beconstruedtoapplytotheinterestintendedbytheassuredtobecovered.

(3)Intheapplicationofthissection,regardshallbehadtoanyusageregulatingthe

designationofthesubjectmatterinsured.

132._ (1) A floating policy is a policy which describes the insurance in general

terms, and leaves thenameof the ship or ships andotherparticular to bedefinedby

subsequentdeclaration.

(2) The subsequent declaration or declarationsmay bemade by endorsement on

thepolicyorinothercustomarymanner.

(3)Unlessthepolicyotherwiseprovides,thedeclarationshallbemadeintheorder

of dispatch or shipment. In the case of goods, they shall comprise all consignments

within the terms of the policy, and the value of the goods or other property shall be

honestlystated;hutanyomissionorerroneousdeclarationmayberectifiedevenafter

lossorarrival;providedtheomissionordeclarationwasmadeingoodfaith.

(4)Unlessthepolicyotherwiseprovides,whereadeclarationofvalueisnotmade

untilafternoticeof lossorarrival, thepolicyshallbe treatedasanunvaluedpolicyas

regardsthesubjectmatterofthatdeclaration.

133._(1)Wheretwoormorepoliciesareeffectedbyoronbehalfoftheassuredon

Contracttobeembodiesina

policy

Nameofinsuredtobespecifiedinpolicydocument.

Signatureofinsurer.

Designationofsubjectmatter.

Floatingpolicybyshiporships.

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thesameadventureand interestoranypart thereof,andthesums insuredexceedthe

indemnity allowed by this Part, the assured is said is to be over-insured by double

insurance.

(2)Wheretheassuredisover-insuredbydoubleinsurance–

(a)theassured,unlessthepolicyotherwiseprovides,mayclaimpaymentfromthe

insurersinsuchorderashemaythinkfit;providedthatheshallnotbeentitledto

receiveanysuminexcessoftheindemnityallowedbythisPart;

(b)wherethepolicyunderwhichtheassuredclaimsisavaluedpolicy,theassured

shall give credit as against the valuation for any sum received by him under any

otherpolicywithoutregardtotheactualvalueofthesubjectmatterinsured;

(c)wherethepolicyunderwhichtheassuredclaimsisanunvaluedpolicy,heshall

givecredit,asagainst the full insurablevalue, foranysumreceivedbyhimunder

anyotherpolicy;

(d)wheretheassuredreceivesanysuminexcessoftheindemnityallowedbythis

Part,shallhedeemedtoholdsuchsumintrustfortheinsurers,accordingtotheir

rightofcontributionamongthemselves.

134._ (1) Any rule of law that breach of a warranty (express or implied) in a

contractofinsuranceresultsinthedischargeoftheinsurer’sliabilityunderthecontract

isabolished.

(2)An insurerhasno liabilityunderacontractof insurance inrespectofany loss

occurring,orattributabletosomethinghappening,afterawarranty(expressorimplied)

inthecontracthasbeenbreachedbutbeforethebreachhasbeenremedied.

(3)Butsubsection(2)doesnotapplyif–

(a)becauseof a changeof circumstances, thewarranty ceases tobeapplicable to

thecircumstancesofthecontract;

(b)compliancewiththewarrantyisrenderedunlawfulbyanysubsequentlaw;or

(c)theinsurerwaivesthebreachofwarranty.

(4) Subsection (2) does not affect the liability of the insurer in respect of losses

occurring,orattributabletosomethinghappening–

(a)beforethebreachofwarranty;or

(b)ifthebreachcanberemedied,afterithasbeenremedied.

(5)Forthepurposesofthissection,abreachofwarrantyistobetakenasremedied

–

(a) inacasefallingwithinsubsection(6), if therisktowhichthewarrantyrelates

Doubleinsurance.

Breachofwarranty.

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laterbecomesessentiallythesameasthatoriginallycontemplatedbytheparties;or

(b)inanyothercase,iftheinsuredceasestobeinbreachofthewarranty.

(6)Acasefallswithinthissubsectionif–

(a)thewarrantyinquestionrequiresthatbyanascertainabletimesomethingisto

bedone(ornotdone),oraconditionistobefulfilled,orsomethingis(orisnot)to

bethecase;and

(b)thatrequirementisnotcompliedwith.

135._Anexpresswarranty–

(a) may be in any form of words from which the intention to warrant is to be

inferred;

(b) shall be included in or written upon the policy, or be contained in some

documentincorporatedbyreferenceintothepolicy;and

(c)shallnotexcludeanimpliedwarranty,unlessitisinconsistenttherewith.

136._(1)Whereinsurableproperty,whethershiporgoods,isexpresslywarranted

neutral,thereisanimpliedconditionthatthepropertyshallhaveaneutralcharacterat

thecommencementoftherisk,andthat,sofarastheassuredcancontrolthematter,its

neutralcharactershallbepreservedduringtherisk.

(2)Whereashipisexpresslywarranted“neutral”,thereisalsoanimpliedcondition

that,sofarastheassuredcancontrolthematter,sheshallbeproperlydocumented,that

is tosay, thatsheshallcarrythenecessarypaperstoestablishherneutrality,andthat

she shall not falsify or suppress her papers, or use simulated papers.Where any loss

occursthroughbreachofthiscondition,theinsurermayavoidthecontract.

137._ There is no implied warranty as to the Nationality of a ship, or that her

nationalityshallnotbechangedduringtherisk.

138._Wherethesubjectmatterinsurediswarranted“well”or“ingoodsafety”ona

particularday,itissufficientifitbesafeatanytimeduringthatday.

139._ (1) In a voyage policy, there is an implied warranty that, at the

commencement of the voyage, the ship shall be seaworthy for the purpose of the

particularadventureinsured.

(2) Where the policy attaches while the ship is in port, there is also an implied

warrantythatsheshall,atthecommencementoftherisk,bereasonablyfittoencounter

theordinaryperilsoftheport.

(3)Where the policy relates to a voyage which is performed in different stages,

duringwhichtheshiprequiresdifferentkindsofor furtherpreparationorequipment,

Expresswarranties.

Warrantyofneutrality.

Noimpliedwarrantyofnationality.

Warrantyofgoodsafety.

Warrantyofseaworthinessof

ship.

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there is an implied warranty that, at the commencement of each stage, the ship is

seaworthyinrespectofsuchpreparationorequipmentforthepurposesofthatstage.

(4)Aship isdeemedtobeseaworthywhenshe isreasonably fit inall respects to

encountertheordinaryperilsoftheseasoftheadventureinsured.

(5)Inatimepolicy,thereisnoimpliedwarrantythatashipshallbeseaworthyat

anystageoftheadventure,butwhere,withtheprivityoftheassured,theshipissentto

sea in an unseaworthy state, the insurer is not liable for any loss attributable to

unseaworthiness.

140._(1)Inapolicyongoodsorothermoveables,thereisnoimpliedwarrantythat

thegoodsormovableareseaworthy.

(2)Invoyagepolicyongoodsorothermoveables,thereisanimpliedwarrantythat,

at thecommencementof thevoyage, theship isnotonlyseaworthyasaship,butalso

that she is reasonably fit to carry the goods or other moveables to the destination

contemplatedbythepolicy.

141._Thereisanimpliedwarrantythattheadventureinsuredisalawfulone,and

that,sofarastheassuredcancontrolthematter,theadventureshallbecarriedoutina

lawfulmanner.

142._ (1)Wherethesubjectmatter is insuredbyavoyagepolicy“atandfrom”or

“from”aparticularplace, it isnotnecessarythattheshipshouldbeatthatplacewhen

thecontract isconcluded,butthereisanimpliedconditionthattheadventureshallbe

commencedwithinareasonabletime,andthat if theadventurebenotsocommenced,

theinsurermayavoidthecontract.

(2)Theimpliedconditionmaybenegativebyshowingthatthedelaywascausedby

circumstancesknowntothe insurerbeforethecontractwasconcluded,orbyshowing

thathewaivedthecondition.

143._Wheretheplaceofdepartureisspecifiedbythepolicy,andtheshipinsteadof

sailingfromthatplacesailsfromanyotherplace,theriskdoesnotattach.

144._Wherethedestinationisspecifiedinthepolicy,andtheship,insteadofsailing

forthatdestination,sailsforanyotherdestination,theriskshallnotattach.

145._(1)Where,afterthecommencementoftherisk,thedestinationoftheshipis

voluntarilychangedfromthedestinationcontemplatedbythepolicy,thereissaidtobe

achangeofvoyage.

(2) Unless the policy otherwise provides, where there is a change of voyage, the

insurerisdischargedfromliabilityasfromthetimeofchange,thatistosay,asfromthe

Noimpliedwarrantythatgoodsareseaworthy

Warrantyoflegality.

Impliedconditionasto

commencementofrisk.

Alterationofportofdeparture.

Sailingfordifferent

destination.

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timewhen the determination to change it ismanifested; and it is immaterial that the

shipmaynotinfacthaveleftthecourseofvoyagecontemplatedbythepolicywhenthe

lossoccurs.

146._ (1) Where a ship, without lawful excuse, deviates from the voyage

contemplatedbythepolicy, the insurer isdischargedfromliabilityas fromthetimeof

deviation,anditisimmaterialthattheshipmayhaveregainedherroutebeforeanyloss

occurs.

(2) There is a deviation from the voyage contemplated by the policy, where the

courseofthevoyageisspecificallydesignatedbythepolicy–

(a)andthatcourseisdepartedfrom;or

(b)buttheusualandcustomarycourseisdepartedfrom.

(3) The intention to deviate is immaterial and if there is a deviation in fact the

insurerisdischargedfromhisliabilityunderthecontract.

147._(1)Whereseveralportsofdischargearespecifiedbythepolicy,theshipmay

proceedtoalloranyofthem,but,intheabsenceofanyusageorsufficientcausetothe

contrary, the ship shall proceed to all or any of them as she goes to, in the order

designatedbythepolicy;andifshedoesnot,thereisadeviation.

(2)Where thepolicy is to “portsofdischarge”,withinagivenarea,whicharenot

named, the ship shall, in the absence of any usage or sufficient cause to the contrary,

proceedtothem,orsuchofthemasshegoesto,intheirgeographicalorder,andifshe

doesnot,thereisadeviation.

148._ In the case of a voyage policy, the adventure insured shall be prosecuted

throughoutitscoursewithreasonabledispatch,and,ifwithoutlawfulexcuseitisnotso

prosecuted, the insurer shall be discharged from liability as from the time when the

delaybecameunreasonable.

149._(1)Deviationordelayinprosecutingthevoyagecontemplatedbythepolicyis

excused–

(a)whereauthorizedbyanyspecialterminthepolicy;

(b) where caused by circumstances beyond the control of the master and his

employer;

(c) where reasonably necessary in order to comply with an express or implied

warranty;

(d)wherereasonablynecessaryforthesafetyoftheshiporsubjectmatterinsured;

(e)forthepurposeofsavinghumanlife,oraidingashipindistresswherehuman

Changeofvoyage.

Deviation.

Severalportsofdischarge.

Delayinvoyage.

Excusesfordeviationordelay.

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lifemaybeindanger;

(f)wherereasonablynecessaryforthepurposeofobtainingmedicalorsurgicalaid

foranypersononboardtheship;or

(g)wherecausedbythebarratrousconductofthemasterorcrew,ifbarratryisone

oftheperilsinsuredagainst.

(2)Whenthecauseexcusingthedeviationordelayceasestooperate,theshipshall

resumehercourse,andprosecutehervoyagewithreasonabledispatch.

150._ (1) A marine policy shall be assignable unless it contains terms expressly

prohibitingassignment;anditmaybeassignedeitherbeforeorafterloss.

(2)Whereamarinepolicyhasbeenassignedsoastopassthebeneficialinterestin

suchpolicy,theassigneeofthepolicyshallbeentitledtosuethereoninhisownname;

andthedefendantshallbeentitledtomakeanydefencearisingoutofthecontractwhich

hewouldhavebeenentitledtomakeiftheactionhadbeenbroughtinthenameofthe

personbyoronbehalfofwhomthepolicywaseffected.

(3)Amarinepolicymaybeassignedbyendorsementthereonorinothercustomary

manner.

151._ (1) Where the assured has parted with or lost his interest in the subject

matter insured, and has not, before or at the time of doing so, expressly or impliedly

agreed to assign the policy, any subsequent assignment of the policy shall be

inoperative.

(2) Nothing in this section shall be construed so as to affect the assignment of a

policyafterloss.

152._ Where a marine policy effected on behalf of the assured by a broker

acknowledges thereceiptof thepremium,suchacknowledgement is, in theabsenceof

fraud,conclusiveasbetweentheinsurerandtheassured,butnotasbetweentheinsurer

andbroker.

153._ (1) Subject to the provisions of this Part, and unless the policy otherwise

provides, the insurershallbe liable forany lossproximatelycausedbyaperil insured

against, but, subject, as aforesaid, he shall not be liable for any loss which is not

proximatelycausedbyaperilinsuredagainst.

(2)Inparticular–

(a)theinsurershallnotbeliableforanylossattributabletothewillfulmisconduct

of theassured,butunless thepolicyotherwiseprovides,heshallbe liable forany

lossproximatelycausedbyaperilinsuredagainst,eventhoughthelosswouldnot

Whenandhowpolicyis

assignable.

Assuredwhohasnointerestcannot

assign.

Effectofreceiptonpolicy.

Includedandexcludedlosses.

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havehappenedbutforthemisconductornegligenceofthemasterorcrew;

(b)unlessthepolicyotherwiseprovides,theinsureronshiporgoodsshallnotbe

liable forany lossproximatelycausedbydelay,althoughthedelaybecausedbya

perilinsuredagainst;and

(c)unlessthepolicyotherwiseprovides,theinsurershallnotbeliableforordinary

wearandtear,ordinaryleakageandbreakage,inherentviceornatureofthesubject

matter insured, or for any loss proximately caused by rats or vermin, or for any

injurytomachinerynotproximatelycausedbymaritimeperils.

154._ (1)Atotal lossmaybeeitheranactualtotal lossoraconstructivetotal loss

andanylossotherthanatotalloss,isapartialloss.

(2)Unlessadifferent intentionappearsfromthetermsofthepolicy,aninsurance

againsttotallossincludesaconstructive,aswellasanactualtotalloss.

(3)Wheretheassuredbringsanactionforatotallossandtheevidenceprovesonly

apartialloss,hemay,unlessthepolicyotherwiseprovides,recoverapartialloss.

(4)Wheregoodsreachtheirdestinationinspecie,butbyreasonofobliterationof

marks,orotherwise, theyare incapableof identification the loss, if any, ispartial, and

nottotal.

155._(1)Wherethesubjectmatterinsuredisdestroyed,orsodamagedastocease

tobeathingofthekindinsured,orwheretheassuredisirretrievablydeprivedthereof,

thereisanactualtotalloss.

(2)Inthecaseofanactualtotalloss,nonoticeofabandonmentneedbegiven.

156._Wheretheshipconcernedintheadventureismissingandafterthelapseofa

reasonabletimenonewsofherhasbeenreceived,anactualtotallossmaybepresumed.

157._ Where, by a peril insured against, the voyage is interrupted at an

intermediate port or place, under such circumstances as, apart from any special

stipulation in the contract of affreightment to justify the master in landing and re-

shippingthegoodsorothermoveables,orintransshippingthem,andsendingthemon

totheirdestination,theliabilityoftheinsurercontinues,notwithstandingthelandingor

transshipment.

158._(1)Subjecttoanyexpressprovisioninthepolicy,thereisaconstructivetotal

losswherethesubjectmatterinsuredisreasonablyabandonedonaccountofitsactual

totallossappearingtobeunavoidable,orbecauseitcouldnotbepreservedfromactual

losswithout an expenditurewhichwould exceed its valuewhen the expenditure had

beenincurred.

Totalandpartialloss.

Actualtotalloss.

Missingship.

Effectoftransshipment,

etc.

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(2)Inparticular,thereisaconstructivetotalloss–

(a)wheretheassuredisdeprivedofthepossessionofhisshiporgoodsbyaperil

insuredagainstand–

(i)itisunlikelythathecanrecovertheshiporgoodsasthecasemaybe,or

(ii)thecostofrecoveringtheshiporgoodsasthecasemaybe,wouldexceed

theirvaluewhenrecovered;

(b) in the case of damage to a ship, where she is so damaged by a peril insured

against that the cost of repairing the damagewould exceed the value of the ship

when repaired; and for the purposes of this paragraph, in estimating the cost of

repairs,nodeduction is tobemade inrespectofgeneralaveragecontributions to

thoserepairspayablebyotherinterests,butaccountistobetakenoftheexpenses

of future salvage operations, and of any future general average contributions to

whichtheshipwouldbeliableifrepaired;or

(c) in the case of damage to goods, where the cost of repairing the damage and

forwardingthegoodstotheirdestinationwouldexceedtheirvalueonarrival.

159._Wherethereisaconstructivetotalloss,theassuredmayeithertreattheloss

asapartialloss,orabandonthesubjectmatterinsuredtotheinsurerandtreattheloss

asifitwereanactualtotalloss.

160._ (1) Subject to the provisions of this section, where the assured elects to

abandonthesubjectmatterinsuredtotheinsurer,heshallgivenoticeofabandonment,

andifhe fails togivenoticeofabandonment, the lossshallonlybetreatedasapartial

loss.

(2)Noticeofabandonmentmaybegiveninwriting,orbywordofmouth,orpartly

inwritingandpartlybywordofmouth,andmaybegiven intermswhich indicatethe

intentionof the assured to abandonhis insured interest in the subjectmatter insured

unconditionallytotheinsurer.

(3)Noticeofabandonmentshallbegivenwithreasonablediligenceafterthereceipt

ofreliableinformationoftheloss,butwheretheinformationisofadoubtfulcharacter,

theassuredisentitledtoareasonabletimetomakeinquiry.

(4)Wherenoticeofabandonmentisproperlygiven,therightsoftheassuredshall

notbeprejudicedbythefactthattheinsurerrefusestoaccepttheabandonment.

(5) The acceptance of abandonment may be either express or implied from the

conduct of the insurer, but the mere silence of the insurer after notice shall not be

construedasanacceptance.

Constructivetotallossdefined.

Effectofconstructivetotal

loss.

Noticeofabandonment.

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(6)Wherenoticeofabandonmentisaccepted,theabandonmentisirrevocable,and

theacceptanceof thenotice shall be construedas conclusiveadmissionof liability for

thelossandthesufficiencyofthenotice.

(7) Notice of abandonment is unnecessary where, at the time when the assured

receives the information of the loss, there would be no possibility of benefit to the

insurerifnoticeweregiventotheinsurer.

(8)Noticeofabandonmentmaybewaivedbytheinsurer.

(9)Where an insurer has re-insured his risk, no notice of abandonment need be

givenbyhim.

161._(1)Wherethereisavalidabandonment,theinsurershallbeentitledtotake

overtheinterestoftheassuredinwhatevermayremainofthesubjectmatterinsured,

andallproprietaryrightsincidentalthereto.

(2) Upon the abandonment of a ship, the insurer thereof shall be entitled to any

freightincourseofbeingearned,andwhichisearnedbyhersubsequenttothecasualty

causingtheloss, lesstheexpensesofearningit incurredafterthecasualty;and,where

the ship is carrying the owner’s goods, the insurer shall be entitled to a reasonable

remunerationforthecarriageofthemsubsequenttothecasualtycausingtheloss.

162._ (1)A particular average loss is a partial loss of the subjectmatter insured,

causedbyaperilinsuredagainst,andwhichisnotageneralaverageloss.

(2)Expensesincurredbyoronbehalfoftheassuredforthesafetyorpreservation

ofthesubjectmatterinsured,otherthangeneralaverageandsalvagecharges,arecalled

particularcharges,andparticularchargesarenotincludedinparticularaverage.

163._(1)Subjecttoanyexpressprovisioninthepolicy,salvagechargesincurredin

preventingalossbyperilsinsuredagainstmayberecoveredasalossbythoseperils.

(2) For the purposes of this section, ‘salvage charges’ means the charges

recoverable under maritime law by a salvor independently of contract, but does not

includeexpensesofservicesinthenatureofsalvagewhicharerecoverable,ifproperly

incurred, as particular charges of general average loss, as the case may be, where

renderedbytheassuredorhisagents,oranypersonemployedforhirebythem,forthe

purposeofavertingaperilinsuredagainst.

164._ (1)Ageneralaverage loss isa losscausedbyordirectlyconsequentialona

general average act, and includes a general average expenditure as well as a general

averagesacrifice.

(2)Thereisageneralaverageactwhereanyextraordinarysacrificeorexpenditure

Effectofabandonment

Particularaverageloss

Salvagecharges.

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is voluntarily and reasonably made or incurred in time of peril for the purpose of

preservingthepropertyimperiledinthecommonadventure.

(3) Where there is a general average loss, the party on whom it falls shall be

entitled,subjecttotheconditionsimposedbymaritimelaw,toarateablecontribution,

calledageneralaveragecontribution,fromtheotherpartiesinterested.

(4)Subjecttoanyexpressprovisioninthepolicy,wheretheassuredhasincurreda

general average expenditure, he may recover from the insurer in respect of the

proportionofthelosswhichfallsuponhim;and,inthecaseofgeneralaveragesacrifice,

hemayrecoverfromtheinsurerinrespectofthewholelosswithouthavingenforcedhis

rightofcontributionfromtheotherpartiesliabletocontribute.

(5)Subjecttoanyexpressprovisioninthepolicy,wheretheassuredhaspaid,oris

liabletopay,ageneralaveragecontributioninrespectofthesubjectmatterinsured,he

mayrecoverfromtheinsurer.

(6) In the absence of express stipulation, the insurer shall not be liable for any

generalaveragelossorcontributionwherethelosswasnotincurredforthepurposeof

avoiding,orinconnectionwiththeavoidanceof,aperilinsuredagainst.

(7)Whereship,freight,andcargo,oranytwoofthoseinterests,areownedbythe

same assured, the liability of the insurer in respect of general average losses or

contributionsshallbedeterminedasifthosesubjectswereownedbydifferentpersons.

165._ (1)Where there is a loss recoverableunder thepolicy, the insurer, or each

insurer if there aremore insurers than one, shall be liable for such proportion of the

measure of indemnity as the amount his subscription bears to the value fixed by the

policyinthecaseofavaluedpolicy,ortotheinsurablevalueinthecaseofanunvalued

policy.

(2)Forthepurposesofthissection“measureofindemnity”meansthesumwhich

theassuredmayrecoverinrespectofalossonapolicybywhichheisinsured,beingin

thecaseofavaluedpolicythefullextentoftheofthevaluefixedbythepolicy,andinthe

caseofanunvaluedpolicy,thefullextentoftheinsurablevalue.

166._ Subject to the provisions of this Part and to any express provision in the

policy,wherethereisatotallossofthesubjectmatterinsured,wherethepolicyis–

(a)avaluedpolicy,themeasureof indemnityshallbethesumfixedbythepolicy;

and

(b)anunvaluedpolicy,themeasureofindemnityshallbetheinsurablevalueofthe

Generalaverageloss.

Extentofliabilityofinsurerforloss.

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subjectmatterinsured.

167._Where a ship is damaged, but is not totally lost, themeasure of indemnity,

subjecttoanyexpressprovisioninthepolicy,shallbe,wheretheship–

(a) has been repaired, the assured shall be entitled to the reasonable cost of the

repairs, less the customary deductions, but not exceeding the sum insured in

respectofanyonecasualty;

(b)hadbeenonlypartiallyrepaired,theassuredshallbeentitledtothereasonable

cost of such repairs, computed as above, and be indemnified for the reasonable

depreciation, if any, arising from the unrepaired damage, provided that the

aggregate amount shall not exceed the cost of repairing the whole damage,

computedasinparagraph(a)ofthissection;and

(c)hasnotbeenrepaired,andhasnotbeensold inherdamagedstateduring the

risk,theassuredshallbeentitledtobeindemnifiedforthereasonabledepreciation

arising from the unrepaired damage, but not exceeding the reasonable cost of

repairingsuchdamage,computedinparagraph(a)ofthissection.

168._Subjecttoanyexpressprovisionsinthepolicy,wherethereisapartiallossof

freight,themeasureofindemnityshallbesuchproportionofthesumfixedbythepolicy

inthecaseofavaluedpolicy,oroftheinsurablevalueinthecaseofanunvaluedpolicy,

astheproportionoffreightlostbytheassuredbearstothewholefreightattheriskof

theassuredunderthepolicy.

169._ (1)Where there isapartial lossofgoods,merchandiseorothermoveables,

themeasureofindemnity,subjecttoanyexpressprovisioninthepolicy,shallbe,where

–

(a)partofthegoods,merchandiseorothermoveablesinsuredbyavaluedpolicyis

totallylost,themeasureofindemnityshallbesuchproportionofthesumfixedby

thepolicyastheinsurablevalueofthepartlostbearstotheinsurablevalueofthe

whole,ascertainedasinthecaseofanunvaluedpolicy;

(b) part of the goods, merchandise, or other moveables insured by an unvalued

policy is totally lost, themeasureof indemnity shall be the insurable valueof the

partlost,ascertainedasincaseoftotalloss;and

(c)thewholeoranypartofthegoodsormerchandise insuredhasbeendelivered

damaged at its destination, themeasure of indemnity shall be suchproportion of

thesumfixedbythepolicyinthecaseofavaluedpolicy,oroftheinsurablevaluein

the case of an unvalued policy, as the difference between the gross sound and

Totalloss.

Partiallossofaship.

Partiallossoffreight.

Partiallossofgoods,

merchandise,etc.

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damagedvaluesattheplaceofarrivalbearstothegrosssoundvalue.

170._(1)Wheredifferentspeciesofpropertyareinsuredunderasinglevaluation,

the valuation shall be apportioned over the different species in proportion to their

respectiveinsurablevalues,asinthecaseofanunvaluedpolicy;andforthepurposesof

thissubsection,theinsuredvalueofanypartofaspeciesissuchproportionofthetotal

insuredvalueofthesameastheinsurablevalueofthepartbearstotheinsurablevalue

ofthewhole,ascertainedinbothcasesasprovidedbythisPart.

(2)Whereavaluationistobeapportioned,andparticularsoftheprimecostofeach

separate species, quality, ordescriptionof goods arenot ascertainable, thedivisionof

thevaluationmaybemadeover thenet arrived soundvaluesof thedifferent species,

qualities,ordescriptionsofgoods.

171._(1)Subjecttoanyexpressprovisioninthepolicy–

(a)wheretheassuredhaspaid,orisliablefor,anygeneralaveragecontribution,the

measureofindemnityisthefullamountofsuchcontribution,ifthesubjectmatter

liabletocontributionisinsuredforitsfullcontributoryvalue;

(b)but,wheresuchsubjectmatterisnotinsuredforitsfullcontributoryvalueorif

onlypartof it is insured,theindemnitypayablebytheinsurershallbereducedin

proportiontotheunderinsurance;and

(c)where there has been a particular average losswhich constitutes a deduction

fromthecontributoryvalue,andforwhichtheinsurerisliable,thatamountshallbe

deductedfromtheinsuredvalueinordertoascertainwhattheinsureris liableto

contribute.

(2)Wheretheinsurerisliableforsalvagecharges,theextentofhisliabilityshallbe

determinedonthelikeprinciple.

172._Where the assured has effected an insurance in express terms against any

liability toa thirdparty, themeasureof indemnity,subject toanyexpressprovision in

thepolicy, is theamountpaidorpayablebyhimtosuchthirdparty inrespectofsuch

liability.

173._(1)Wheretherehasbeenalossinrespectofanysubjectmatternotexpressly

providedforintheforegoingprovisionsofthisPart,themeasureofindemnityshallbe

ascertained, as nearly as may be, in accordance with those provisions, in so far as

applicabletotheparticularcase.

(2)Nothing in thisPartrelating to themeasureof indemnityshallaffect therules

relatingtodoubleinsurance,orprohibittheinsurerfromdisprovinginterestwhollyor

Apportionmentofvaluation.

Generalaveragecontributionandsalvagecharges.

Liabilitiestothirdparties.

Generalprovisionsastomeasureofindemnity.

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inpart,orfromshowingthatatthetimeofthelossthewholeoranypartofthesubject

matterinsuredwasnotatriskunderthepolicy.

174._ (1) Where the subject matter insured is warranted free from particular

average,theassuredshallnotrecoverforalossofpartotherthanalossincurredbya

general average sacrifice, unless the contract contained in thepolicy is apportionable;

but, if the contract is apportionable, the assured may recover for a total loss of any

apportionablepart.

(2)Where the subject matter insured is warranted free from particular average,

eitherwhollyorunderacertainpercentage,theinsurershallneverthelessbeliablefor

salvagecharges;andtheinsurershallalsobeliableforparticularchargesforandother

expenses of averting a loss insured against, where properly incurred pursuant to the

provisionsofa suingand laboringclause to the likeeffectas setout in theprescribed

form,ifcontainedinthepolicy.

(3) Unless the policy otherwise provides, where the subject matter insured is

warrantedfreefromparticularaverageunderaspecifiedpercentage,ageneralaverage

lossshallnotbeaddedtoaparticularaveragelosstomakeupthespecifiedpercentage.

(4) For the purpose of ascertaining whether the specified percentage has been

reached, regard shall be had only to the actual loss suffered by the subject matter

insured,andparticularchargesand theexpensesofand incidental toascertainingand

provingthelossshallbeexcluded.

175._(1)Unlessthepolicyotherwiseprovides,andsubjecttotheprovisionsofthis

Part, the insurer shall be liable for successive losses, even though the total amount of

suchlossesmayexceedthesuminsured.

(2)Where, under the same policy, a partial loss,which has not been repaired or

otherwisemadegood,isfollowedbyatotalloss,theassuredmayrecoverinrespectonly

ofthetotalloss.

(3)Nothing inthissectionshallaffectthe liabilityofan insurerunderasuingand

labouringclauseintheprescribedfromortothelikeeffectifcontainedinthepolicy.

176._(1)Wherethepolicycontainsasuingandlabouringclauseintheprescribed

form or to the like effect, the agreement thereby entered into shall deemed to be

supplementary to the contract of insurance, and the assured may recover from the

insureranyexpensesproperlyincurredpursuanttotheclause,notwithstandingthatthe

insurer may have paid for a total loss, or that the subject matter may have been

warrantedfreefromparticularaverage,eitherwhollyorunderacertainpercentage.

Particularaveragewarranties.

Successivelosses.

Suingandlaboringclause.

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(2)Generalaveragelossesandcontributionsandsalvagecharges,asdefinedbythis

Part,shallnotberecoverableunderthesuingandlabouringclause.

(3) Expenses incurred for the purpose of averting or diminishing any loss not

coveredbythepolicyarenotrecoverableunderthesuingandlabouringclause.

(4)Itshallthedutyoftheassuredandhisagents,inallcases,totakesuchmeasures

asmaybereasonableforthepurposeofavertingorminimizingaloss.

177._(1)Wheretheinsurerpaysforatotalloss,eitherofthewhole,orinthecase

of goods of any apportionable part, of the subjectmatter insured, he shall thereupon

becomeentitledtotakeovertheinterestoftheassuredinwhatevermayremainofthe

subjectmattersopaidfor,andshalltherebybesubrogatedtoalltherightsandremedies

of theassuredinandinrespectof thatsubjectmatteras fromthetimeof thecasualty

causingtheloss.

(2)Subjecttosubsection(1)ofthissection,wheretheinsurerpaysforapartialloss,

heshallacquirenotitletothesubjectmatterinsured,orsuchpartofitasmayremain,

but shall thereuponbe subrogated to all rights and remedies of the assured in and in

respectofthesubjectmatterinsuredasfromthetimeofthecasualtycausingtheloss,in

sofarastheassuredhasbeenindemnified,accordingtothisPart,bysuchpaymentfor

theloss.

178._(1)Wheretheassuredisoverinsuredbydoubleinsurance,eachinsurershall

bebound,asbetweenhimselfandtheotherinsurers,tocontributerateablytothelossin

proportiontotheamountforwhichheisliableunderhiscontract.

(2)Whereanyinsurerpaysmorethanhisproportionoftheloss,heshallbeentitled

tomaintainanactionforcontributionagainsttheotherinsurers,andbeentitledtothe

likeremediesasasuretywhohaspaidmorethanhisproportionofthedebt.

179._Wheretheassuredisinsuredforanamountlessthantheinsurablevalueor,

inthecaseofavaluedpolicy, foranamountlessthanthepolicyvaluation,heshall ‘be

deemedtobehisowninsurerinrespectoftheuninsuredbalance.

180._Wherethepremiumoraproportionatepartthereofis,bythisPart,declared

tobereturnablewhere–

(a)alreadypaid,itmayberecoveredbytheassuredfromtheinsurer;and

(b)unpaid,itmayberetainedbytheassuredorhisagent.

181._Where thepolicy contains a stipulation for the returnof thepremium,or a

proportionatepartthereof,onthehappeningofacertainevent,andthateventhappens,

thepremium,or,asthecasemaybe,theproportionatepartthereof,shallthereuponbe

Rightofsubrogation.

Rightofcontribution.

Effectofunderinsurance.

Enforcementofreturn.

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returnedtotheassured.

182._(1)Wheretheconsiderationforthepaymentofthepremiumtotallyfails,and

there has been no fraud or illegality on the part of the assured or his agents, the

premiumshallthereuponbereturnedtotheassured.

(2)Wheretheconsiderationforthepaymentofthepremiumisapportionableand

thereistotalfailureofanyapportionablepartoftheconsideration,aproportionatepart

ofthepremiumshall,underthelikeconditions,bereturnedtotheassured.

(3)Inparticular,where–

(a)apolicyisvoid,orisavoidedbytheinsurerasfromthecommencementofthe

risk, the premium shall be returnable, provided that there has been no fraud or

illegalityonthepartoftheassured;butiftheriskisnotapportionable,andhasonce

attached,thepremiumshallnotbereturnable;

(b)thesubjectmatterinsured,orpartthereof,hasneverbeenimperiled,premium,

or,asthecasemaybe,aproportionatepartthereof,isreturnable:

Providedthatwherethesubjectmatterhasbeeninsured“lostornotlost”and

hasarrivedinsafetyatthetimewhenthecontractisconcluded,thepremiumisnot

returnable unless, at such time, the insurer knew of the safe arrival where the

assuredhas;

(c)noinsurableinterestthroughoutthecurrencyoftherisk,thepremiumshallbe

returnable; but nothing in this paragraph shall be construed to apply to a policy

effectedbywayofgamingorwagering;

(d) a defeasible interestwhich is terminated during the currency of the risk, the

premiumshallnotbereturnable;and

(e) over-insured under an unvalued policy, a proportionate part of the premium

shallbereturnable.

(4)Subjecttotheforegoingprovisionsofthissection,wheretheassuredhasover-

insured by double insurance, a proportionate part of the several premiums shall be

returnable:

Provided that, if thepoliciesareeffectedatdifferent times, andanyearlierpolicy

hasatanytimebornetheentirerisk,orifaclaimhasbeenpaidonthepolicyinrespect

ofthefullsuminsuredthereby,nopremiumshallbereturnableinrespectofthatpolicy,

andwhenthedoubleinsuranceiseffectedknowinglybytheassurednopremiumshall

bereturnable.

183._Whereacontractofmarineinsuranceis,ingoodfaith,effectedbyoneperson

Returnbyagreement.

Returnforfailureofconsideration.

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onbehalfof another, thepersononwhosebehalf it is effectedmay ratify the contract

evenafterheisawareofaloss.

184._(1)Whereanyright,duty,orliabilitywouldariseunderacontractofmarine

insurancebyimplicationof law, itmaybenegativeorvariedbyexpressagreement,or

byusage,iftheusageissuchastobindbothpartiestothecontract.

(2)Theprovisionsofthissectionshallextendtoanyright,duty,orliabilitydeclared

bythisPartwhichmaybelawfullymodifiedbyagreement.

185._Where there isadulystampedpolicy, referencemaybemadeto theslipor

coveringnote,inanylegalproceeding.

186._(1)Ifanyperson–

(a) effects a contract of marine insurance without having any bona fide interest,

direct or indirect, either in the safe arrival of the ship in relation to which the

contractismadeorinthesafetyorpreservationofthesubjectmatterinsured,ora

bonafideexpectationofacquiringsuchaninterest;or

(b) in theemploymentof theownerofa ship,notbeingapartownerof theship,

effects a contract of marine insurance in relation to the ship and the contract is

made–

(i)“interestornointerest”,

(ii)“withoutfurtherproofofinterestthanthepolicyitself”,

(iii)“withoutbenefitorsalvagetotheinsurer”,or

(iv)subjecttoanyotherliketerm,

thecontractshallbedeemedtobeacontractbywayofgamblingonlossbymarine

perils,andthepersoneffectingthecontractshallbeguiltyofanoffenceandliable,

onconviction,toimprisonmentforatermnotexceeding12monthsortoafinenot

exceeding N250,000.00 and, in either case, to forfeit any money he may have

receivedunderthecontract.

(2) Any broker or other person throughwhom, and any insurerwithwhom, any

suchcontractiseffectedshallbeguiltyofanoffenceandliable,onconviction,tothelike

penalties, if he acted knowing that the contract was by way of gambling on loss by

maritimeperilswithinthemeaningofthissection.

(3) Proceedings shall not be instituted under this section against a person (other

than a person in the employment of the owner of the ship in relation to which the

contractwasmade)alleged tohaveeffecteda contractbywayof gamblingon lossby

marineperilsuntilanopportunityhasbeenaffordedhimofshowing that thecontract

Ratificationbyassured.

Impliedobligationsvariedbyagreementor

usage.

Slipasevidence.

Gamblingonlossbymaritimeperils

prohibited.

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wasnotsuchacontractasaforesaid,andanyinformationgivenbythatpersonforthat

purposeshallnotbeadmissible inevidenceagainsthim inanyprosecutionunder this

section.

(4)Whereproceedingsunderthissectionaretakenagainstanyperson(otherthan

aperson in theemploymentof theownerof theship inrelation towhich thecontract

wasmade)foreffectingsuchacontractandthecontractwasmade–

(a)“interestornointerest”;

(b)“withoutfurtherproofofinterestthanthepolicyitself”;

(c)“withoutbenefitofsalvagetotheinsurer”;or

(d)subjecttoanyotherliketerm,thecontractshallbedeemedtobeacontractby

wayofgamblingonlossbymaritimeperilsunlessthecontraryisproved.

(5)Forthepurposeofgivingjurisdictionunderthissection,everyoffenceshallbe

deemed to have been committed either in the place in which the same actually was

committedorinanyplaceinwhichtheoffendermaybe.

(6)Forthepurposesofthissection,theexpression“owner”includescharterer.

187._(1)InthisPartunlessthecontextotherwiserequires–

“action”includes“counter-claim”and“set-off”;

“freight”includestheprofitderivablebyashipownerfromtheemploymentofhis

ship to carry his own goods or moveables, as well as freight payable by a third

party,butdoesnotincludepassagemoney;

“gross proceeds”means the actual price obtained at a salewhere all charges on

salearepaidbythesellers;

“grossvalue”meansthewholesalepriceor,ifthereisnosuchprice,theestimated

value, with in either case, freight, landing charges, and duty paid before-hand;

provided that, in the case of goods ormerchandise customarily sold in bond, the

bondedpriceshallbedeemedtobethegrossvalue;

“maritimeperils”meanstheperilsconsequenton,orincidentalto,thenavigation

of thesea, that is tosay,perilsof theseas, fire,warperils,pirates,rovers, thieves,

captures, seizures, restraints, and detainment of princes and peoples, jettisons,

barratry,andanyotherperils,eitherofthelikekindorwhichmaybedesignatedby

thepolicy;

“moveables” means any moveable tangible property other than the ship and

includesmoney,valuablesecuritiesandotherdocuments;

“policy”meansamarinepolicy;

InterpretationofthisPart.

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“prescribedform”meanstheformofpolicy intheSecondScheduleorsuchother

policyasmaybeapprovedbytheCommission.

“time Policy” is a policywhere the contract is to insure the subjectmatter for a

definiteperiodoftime;

“unvaluedpolicy”meansapolicywhichdoesnot specify thevalueof the subject

matter insured, but, subject to the limit of the sum insured, leaves the insurable

valuetobesubsequentlyascertained,inthemannerspecifiedinsection118ofthis

Bill;“valuedpolicy”meansapolicywhichspecifiestheagreedvalueofthesubject

matter insured.Subject to theprovisionsof thisPart, and in theabsenceof fraud,

thevalue fixedby thepolicy is, asbetween the insurerandassured, conclusiveof

theinsurablevalueofthesubjectintendedtobeinsured,whetherthelossistotalor

partial. Unless the policy otherwise provides, the value fixed by the policy is not

conclusive for thepurposesofdeterminingwhethertherehasbeenaconstructive

total loss; and “Voyage Policy” is a policy where the contract is to ensure the

subjectmatter“atandfrom”,orfromoneplacetoanotherorothers.

(2)ForthepurposesofthisBill,wherethereisareferenceto–

(a)“reasonabletime”;

(b)“reasonablepremium”;or

(c)“reasonablediligence”,

thequestionofwhatisreasonableshallbeaquestionoffact.

PARTXVI–MISCELLANEOUS

188._(1)Apersonshallnotplaceinsuranceorreinsurancebusinesswithaforeign

insurerorreinsurer inrespectofany life,asset, interestorotherproperties inNigeria

classified as domestic insurance or re-insurance business unless with a company

registeredunderthisBill.

(2)Inthissection,“domesticinsuranceorreinsurancebusiness”includes–

(a)fireinsuranceandreinsurance;

(b)motorinsuranceandreinsurance;

(c)liabilityinsuranceandreinsurance;

(d)lifeinsuranceandreinsurance;

(e)accidentinsuranceandreinsurance;

(f)engineeringinsuranceandreinsurance;

(g)oilandgasinsuranceandreinsurance;

(h)aviationinsuranceandreinsurance;

Contractwithforeigninsurerandreinsurer

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(i)energyandpowerinsuranceandreinsurance;and

(j) such other insurance and reinsurance business as the Commissionmay, from

timetotime,determineinregulationsmadebyit.

(3)Forallotherclassesnotspecifiedinsubsection(2)ofthissection,localcapacity

shall be fully utilized before they are insured or reinsured abroad subject to prior

approvalbytheCommission.

(4) A person who contravenes the provisions of subsection (1) of this section is

liabletoapenaltytothesumnotlessthanthetotalpremiuminvolvedandamaximum

of5timesthepremiuminvolved.

(5)Notwithstandingtheprovisionsofsubsection(1)ofthissection,whereaperson

satisfiestheCommissionthatbyreasonofexceptionalnatureoftheriskinoremanating

fromNigeriaoranyotherexceptionalcircumstances,suchriskcannotbeplacedwithan

insurer or reinsurer registeredunder thisBill, theCommissionmay inwritingpermit

such person to effect such insurance or reinsurance with an insurer or reinsurer

registered,outsideNigeria.

189._ (1) Notwithstanding any other provision of this Bill and the contract of

insurance,athirdpartybeneficiaryunderacontractofgeneralinsurancehasarightto

recoverfromtheinsurertheamountofanylosssufferedbythethirdpartybeneficiary

withinthelimitinsuredinthecontracteventhoughthethirdpartybeneficiaryisnota

partytothecontract.

190._(1)Aninsuranceoperatorshallestablishasystemofinternalcontroloverits

financial reporting and security of its assets and it shall be the responsibility of the

board of directors to ensure the integrity of the operator’s financial controls and

reporting.

(2)Theboardofdirectorsofaninsuranceoperatorshallreportontheeffectiveness

oftheoperator’sinternalcontrolsystemsinitsannualreport.

(3)Inthissection,“internalcontrol”meanspolicies,proceduresandpracticesputin

place by management to ensure safety of assets, accuracy of financial records and

reports,achievementofcorporateobjectivesandcompliancewithlawsandregulations.

191._ (1) Every insurance operator shall be bound by the code of conduct on

corporategovernanceissued,fromtimetotime,bytheCommission.

(2) An operator who neglects or fails to comply with the code of conduct and

regulationsoncorporategovernanceissuedpursuanttosubsection(1)ofthissectionis

liable to suchpenalties asmaybeprescribed in regulationsmadeby theCommission,

Contractsofgeneralinsurance–entitlementsofthirdpartybenefit.

Internalcontrolsystemofinsuranceoperators.

Codeofconductandcorporategovernance.

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fromtimetotime.

192._(1)Whereaninsurerreasonablybelievesthatafraudulentinsuranceconduct

isbeing,orhasbeencommitted,theinsurershallfurnishtheCommission,onaformto

be prescribed by the Commission, all information relating to such conduct as the

Commissionmayrequire.

(2)Theprovisionsofsubsection(1)of thissectiondoesnotpreventorprohibita

person fromvoluntarilydisclosing any information concerning insurance fraud to any

lawenforcementagencyotherthantheCommission.

193._(1)TheCommissionshallhavepowertomakeregulationsastotheformand

contentsofinsuranceadvertisement.

(2)Noinsuranceoperatorshallissue,publishorcausetobeissuedorpublishedon

its behalf, any form of insurance advertisement without the prior approval of the

Commission.

(3)Subjecttotheprovisionsofsubsections(1)and(2)ofthissection–

(a) an insuranceoperatorwho issues an insurance advertisement contrary to the

provisionsofthissectionisliabletoapenaltyofsuchsumasmaybeprescribedif

regulationsissuedbytheCommission;and

(b) any person, other than an insurance operator, who issues an insurance

advertisementincontraventionoftheprovisionsofthissectioncommitsanoffence

andisliableonconvictiontoafineofasumofnotlessthanN500,000.00.

(4)Forthepurposeof–

(a)thissection,anadvertisementissuedbyanypersononbehalfoforbytheorder

ofanotherperson,shallbetreatedasanadvertisementissuedbythatperson;and

(b)anyproceedingsunderthissection,anadvertisementinvitingpersonstoenter

into contracts of insurancewith a person specified in the advertisement shall be

presumed,

unlessthecontraryisproved,tohavebeenissuedbythatperson.

(5)Inthissection–

(a) “advertisement” includes every formof advertising,whether in apublication,

display of notice, circulars, other documents, an exhibition of photographs or

cinematography- films, electronic media, sound broadcasting or television, and

referencestotheissueofanadvertisementshallbeconstruedaccordingly;and

(b) “insurance advertisement” means an advertisement inviting persons to enter

into or offer to enter into contracts of insurance, and an advertisement which

Dutyofinsurerstoreportfraudulentinsuranceconduct.

Advertisement

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containsinformationcalculatedtoleaddirectlytopersonsenteringintooroffering

suchcontractsshallbetreatedasanadvertisementinvitingthemtodoso.

194._ A person who, by any statement, promise or forecast which he knows or

reasonably believes to be misleading, false or deceptive, or by any dishonest

concealmentofmaterialfacts,orbytherecklessmakingeitherdishonestlyorotherwise,

ofanystatementinducesanotherpersontoenterintooroffertoenterintoanycontract

ofinsurancewithaninsurancecompanycommitsanoffenceandisliableonconviction

toafinenotlessthanN500,000.00orimprisonmentforatermof2yearsortobothfine

andimprisonment.

195._ (1) Subject to the provisions of Parts XI and XII of this Bill, in every case

where a claim ismade inwriting by the insured or any other party entitled to claim

underan insurancepolicy, the insurershall,whereheaccepts liability,settletheclaim

notlaterthan30daysaftertheissuanceofadischargevoucherorsuchperiodoftimeas

maybeprescribedinregulationsmadebytheCommissionfromtimetotime.

(2)Whereanyclaimremainsunpaidasprovided insubsection(1)of thissection,

the insured may request the Commission to effect the payment from the statutory

depositoftheinsurerandtheCommissionshallhavepowertoeffectsuchpayment.

(3) Where the insurer does not accept liability, he shall deliver a statement in

writingstatingthereasonfordisclaimingsuchliabilitytothepersonmakingtheclaim

or his authorized representative not later than 60 days from the date on which the

persondeliveredhisclaimtotheinsurer,orsuchperiodoftimeasmaybeprescribedin

regulationsmadebytheCommissionfromtimetotime.

(4)Aninsurerwhocontravenestheprovisionsofthissectionisliabletoapenaltyof

N500,000.00.

(5)Notwithstandinganythingcontainedinthecontractofinsurance,inallcasesof

insurancesmadecompulsoryunderthisBill,aninsurershallbeliabletocompensatethe

insured or third party for damages suffered as a result of the insurer’s unreasonable

delayinsettlingaclaimasmaybeawardedbyacourtofcompetentjurisdictionorthe

disputeresolutionpanelsetupunderthisBill.

196._(1)Aninsurershallnotgrantloanstoanon-executivedirectoroftheinsurer

directlyorindirectlyexceptaloan–

(a)onlifepoliciesissuedtosuchpersonbytheinsurer;or

(b)normallyformingpartofthetermsandconditionsofserviceofsuchperson.

Misleadingstatements,etc.

Claimssettlement.

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(2) An insurer who grants, and a non-executive director who receives any loan

otherthanasprovidedforinsubsection(1)ofthissectionisliabletoapenaltyofasum

of2timestheamountofsuchloan.

(3) An employee of the insurance operator shall not engage in any business

transaction or trade in any manner whatsoever with the insurance operator as a

counterpartorwiththesubsidiaryinrelationtoinsurancefundsorassets.

197._ (1) The Security and Insurance Development Fund provided under the

National InsuranceCommissionAct, CapN53Lawsof the Federation ofNigeria, 2004

shallbeused–

(a) for the payment of any claim admitted by or allowed against a licensed

insuranceoperatorwhichremainsunpaidbyreasonofinsolvencyorcancellationof

thelicenceoftheinsuranceoperator;

(b)tocompensateinnocentindividualthirdpartiespermanentlydisabledorkilled

byuninsuredorunidentifiedmotorvehicle.

(2) The proportion of claim to be paid pursuant to subsection (1) of this section

shallbedeterminedbytheCommission.

(3) The Security and Insurance Development Fund shall be used for all such

insurancedevelopmentpurposesastheCommissionmaydetermine.

198._(1)Aperson,otherthananinsuranceoperator,requiredtofurnishreturnsor

information to the Commission under this Bill who fails to furnish such returns or

information,commitsanoffenceandisliable,onconviction,toafineofN500,000.00or

toimprisonmentforatermof6monthsortobothfineandimprisonment.

(2) A person who, in purported compliance with subsection (1) of this section,

knowinglyorrecklessly–

(a)makesastatementinthereturns;or

(b)givesinformation;whichisfalse,commitsanoffenceandisliableonconviction

toafineofnotlessthanN500,000.00ortoimprisonmentforatermof1yearorto

bothfineandimprisonment.

199._(1)WhereanoriginaldocumentistobeproducedtotheCommission,itshall

beaccompaniedbytwodulycertifiedtruecopiesofthedocumentforretentionbythe

Commission,unlesstheCommissiondispenseswiththeirproduction.

(2)Where only a copy of a document is produced, the Commissionmay require

production of further evidence to account for the absence of the original and if it is

satisfied, 2 copies shall be prepared, and shall, when duly certified on behalf of the

RestrictiononloanstoDirectors,

etc.

SecurityandInsurance

DevelopmentFund.

OffencesastoReturns

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insurance operator be retained by the Commission, unless the Commission dispenses

withtheirproduction.

(3)Forthepurposeofthissection,adocumentshallbedeemedtobedulysignedor

certifiedwhereitissigned–

(a) on behalf of the insurance operator by the chief executive officer of such

insuranceoperatorinNigeria,issuedunderthesealoftheinsuranceoperator;or

(b)bysomepersonsapprovedbytheCommission.

200._(1)Serviceofprocessinanylegalproceedingagainstaninsuranceoperator,

registered or licensed under this Bill, may be effected at the principal office of such

insuranceoperator.

(2)Where the principal office of the insurance operator in Nigeria has ceased to

exist,processinanylegalproceedingagainstsuchinsuranceoperator,maybeservedat

the office of the Commissioner of insurance and such service shall be deemed to be

serviceontheinsuranceoperator.

201._ (1)NotwithstandinganyotherprovisionofthisBill, theCommissionmayin

writing, suspend an insurance operator from conducting a new or further insurance

businessforaperiodofnotexceeding12months,wheretheinsuranceoperatorfailsto

payanypenaltyor fine imposedunder thisBillorregulationsmade theretowithin30

daysfromthedateofimpositionthereof.

(2)Wheretheinsuranceoperatorfailstopaythepenaltyorfinereferredtounder

subsection (1) of this section within the period of suspension mentioned in that

subsection, the Commissionmay cancel the certificate of registration of the insurance

operator.

(3)AnypersonwhoisfoundguiltyofanoffenceunderthisBillforwhichnospecific

penaltyisprovidedshall,onconviction,beliableinthecaseofa–

(a) first conviction, to a fine of N50,00000 or to a maximum term of 6 months’

imprisonmentortobothfineandimprisonment;and

(b) secondor subsequent conviction toa fineofN100,000.00or to imprisonment

foramaximumtermof12monthsortobothfineandimprisonment.

202._WherefeesaretobeprescribedunderthisBillorarespecifiedherein,such

fees shall be prescribed, or as the case may be, varied, from time to time, by the

Commission.

203._(1)TheProvisionsofthisBillarewithoutprejudicetotheapplicationofthe

CompaniesandAlliedMattersAct,CapN20LawsoftheFederationofNigeria,2004and

Productionofdocuments.

Serviceofprocess.

Penaltyfornon-compliance.

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any other enactment applicable to insurance institutions under this Bill which are

companiesregisteredunderthatAct,sohoweverthatwhereanyoftheprovisionsofthe

CompaniesandAlliedMattersAct,CapN20LawsoftheFederationofNigeria,2004and

otherenactmentisinconsistentwithanyprovisionofthisBill,theprovisionofthisBill

shallprevailtotheextentofthatinconsistency.

(2)Anyprovisioninanywrittenlawthathastheeffectoflimitingorsubjectingto

any other entity the powers of the Commission to register, deregister or licence or

withdraw the licence of any insurance operator shall be of no effect from the date of

comingintoforceofthisBill.

204._Without prejudice to the power of the Attorney General of the Federation,

under the Constitution of the Federal Republic of Nigeria, 1999 to continue or

discontinue criminal proceedings against any person in any court of law, the

Commissionmay compound any offence punishable under this Bill by accepting such

sumsofmoneyasitdeemsfit,notexceedingtheamountofthemaximumfinetowhich

thatpersonwouldhavebeenliableifhehadbeenconvictedoftheoffence.

205._ (1)Where an insurance operator or any other person commits an offence

under this Bill, the Commission shall, in addition to the imposition of the penalty

specifiedfortheoffence,makeanorderforthepaymentoftheamountinvolvedinthe

commissionoftheoffence.

(2)WheretheCommissionmakesanorderundersubsection(1)ofthissectionand

thepersonfailstocomplywithinthetimespecifiedintheorder, theCommissionshall

makeanordertolevyexecutiononsuchofthepropertyofthepersonasissufficientto

covertheamountinvolved.

(3)Anyamountpaidorrecoveredunder thissectionshallbeusedtocompensate

any person who, the Commission is satisfied, suffered in any way as a result of the

insurancetransactionconnectedwiththeoffence.

(4) Where the amount referred to in subsection (3) of this section is not fully

utilized for thepurposespecified in that subsection, thebalanceshallbepaid into the

Security and Insurance Development Fund established under the National Insurance

CommissionAct,CapN53LawsoftheFederationofNigeria,2004.

206._(1)WhereanoffenceunderthisBillhasbeencommittedbyabodycorporate,

firmorotherassociationofindividuals,apersonwhoatthetimeofthecommissionof

theoffencewasanofficerorwaspurporting toact insuchcapacityseverallycommits

thatoffenceandliabletobeprosecutedandpunishedfortheoffenceinlikemannerasif

Fees.

ApplicationoftheprovisionsoftheCompaniesand

AlliedMattersAct,CapN20LFN,

2004.

Compoundingofoffences.

Recoveryofsumsinvolvedinthecommissionof

offences.

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he had himself committed the offence, unless he proves that the act or omission

constitutingtheoffencetookplacewithouthisknowledge,consentorconnivance.

(2)InthissectionandintheotherprovisionsofthisBill,officer–

(a)inrelationtoabodycorporate,meansadirector,chiefexecutive,managerand

CompanySecretary;and

(b)inrelationtothefirm,includesapartnerandotherofficersofthefirm.

207._(1)AnoffenceunderthisBillshall,subjecttotheRulesoftheCourt,betried

in the Federal High Court and references in this Bill to “Court” shall be construed

accordingly.

(2) Without prejudice to powers of the Attorney-General of the Federation in

criminal proceedings, the Commission may with the prior approval of the Board,

prosecuteoffendersunderthisBill.

208._ Any person who willfully obstructs, interferes with, assaults or resists a

publicofficer in theperformanceofhis lawfuldutiesunder thisBilloraids, invites,or

abets any other person to obstruct, interfere with, assault or resist any such officer,

commits an offence and is liable on conviction to a fine not less thanN500,000.00 or

imprisonmentforatermof1yearortobothfineandimprisonment.

209._(1)Apublicofficercommitsanoffenceif,inthedischargeofhislawfulduties

underthisAct,heknowinglyorrecklesslypresentstoanotherpublicofficer,whoisto

takeadecisionthereonordoanyotheractinrelationthereto,informationwhichisfalse

inanymaterialparticular,unlessheprovesthatsuchinformationwassuppliedtohim

byanotherpersonandthatheexercisedallduediligencetopreventthecommissionof

theoffenceasheoughttohaveexercised,havingregardtothenatureofhisfunctionsin

thatcapacityandinallthecircumstances.

(2)Apublicofficerwhocommitsanoffenceundersubsection(1)ofthissectionis

liable on conviction to a fine not exceeding N500,000.00 or imprisonment for a

maximumtermof12monthsortobothfineandimprisonment.

210._ (1) The Federal Government, the Commission or any officer of the

GovernmentorCommission shall notbe subject to anyaction, claimordemandbyor

liabilitytoanypersoninrespectofanythingdoneoromittedtobedoneingoodfaithin

pursuanceorinexecutionof,orinconnectionwiththeexecutionorintendedexecution

ofanypowerconferredupon theGovernment, theCommissionorsuchofficer,by this

Bill or the National Insurance Commission Act, Cap N53 Laws of the Federation of

Nigeria,2004.

Offencesbybodycorporate.

Jurisdictionandprosecution.

Obstructionofpublicofficers.

Misrepresentationbypublicofficers.

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(2) For the purpose of this section, theMinister or any officer duly acting on his

behalf shall be deemed to be an officer of the Federal Government and the

Commissioner, and the Deputy Commissioners of the Commission or other employee

shallbedeemedtobeanofficeroftheCommission.

211._ The Commission may make regulations generally for the purpose of

implementingandenforcingtheprovisionsofthisBill.

212._(1)TheActs–

(a) InsuranceAct,Cap.I17,LawsoftheFederationofNigeria,2004;

(b) MarineInsuranceAct,Cap.M3,LawsoftheFederationofNigeria,2004;

(c) MotorVehicles(ThirdPartyInsurance)Act,Cap.M22,LawsoftheFederationof

Nigeria,2004;

(d) NationalInsuranceCorporationofNigeriaAct,Cap.N54,LawsoftheFederation

ofNigeria,2004;and

(e) Nigeria Reinsurance Corporation Act, Cap. N131, Laws of the Federation of

Nigeria,2004,

areherebyrepealed.

(2)Without prejudice to section 6 of the Interpretation Act, Cap I23 Laws of the

Federation of Nigeria, 2004, the repeal of the Acts specified in subsection (1) of this

section,shallnotaffectanythingdoneunderorpursuanttotheActs.

(3)Everyorder, requirement, certificate,notice,direction,decision, authorization,

consent,application,requestorthingmade,issued,givenordoneunderanyoftheActs

repealedbythisBillshall,ifinforceatthecommencementofthisBill,continuetobein

force and have effect as if made, issued, given or done under the corresponding

provisionsofthisBill.

213._InthisBill,unlessthecontextotherwiserequires–

“afirm”includesapartnerandotherofficerofafirm;

“a person” means any individual, corporation, association, and other legal entity

engaged in the business of insurance, including agents, insurance operators,

brokersandlossadjusters;

“any other association of individuals” includes a person concerned in the

managementoftheaffairsofsuchassociation;

“Board” means the governing board of the National Insurance Commission of

Nigeria;

Protectionagainstadverseclaims.

Powertomakeregulations.

Repealandsavingsprovision.

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“BrownCard”meanstheECOWASBrownCardwithinthemeaningoftheProtocol;

“Civil Aviation Act” means the Civil Aviation Act, 2006 or any re-enactment or

modificationthereofforthetimebeinginforce;

“Commission”meanstheNationalInsuranceCommission;

“Commissioner”meanstheCommissionerofInsurance;

“intermediaries”includelossadjusters;

“Insurance operator” means an insurer, reinsurer, insurance broker, insurance

agent,lossadjusterandinsurancepool,asthecasemaybe;

“Insurer”includesre-insurer;

“Institute”meanstheCharteredInsuranceInstituteofNigeria;

“Minister”means theMinister chargedwith responsibility formatters relating to

financeoranyMinisterchargedwithinsurancematters;

“Protocol”means theProtocol onEstablishmentofECOWASBrownCardScheme

RelatingtoThirdPartyLiabilityInsurance;

“property”meansrealorpersonalpropertyofeverydescription,includingmoney,

whethertangibleorintangible,andincludesaninterestinanysuchrealorpersonal

property;and

“regulations” means regulations, orders, guidelines, code of conduct, circular or

anyotherdirectivemadebytheCommissionandapprovedbytheBoardpursuant

tothisBill.

214._ThisBillmaybecitedastheInsuranceBill,2020.

Interpretation.

Shorttitle.

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SCHEDULES

FIRSTSCHEDULE[Section128(1)]

FORMOFPOLICY

BEITKNOWNTHAT……………………………………………………aswellin…………………………………….ownnameasforandinthenameandnamesofallandeveryotherpersonorpersonstowhomthesamedothmay,orshallappertain,inpartorinalldothmakeassuranceandcause…………………………andthem,andeveryofthem,tobeinsuredlostornotlost,atandfrom………………………………………………………………………………………Uponanykindofgoodsandmerchandise,andalsoupon thebody, tackle,apparel,ordnance,munition,artillery,boat,andotherfurniture,ofandinthegoodshiporvesselcalledthe……………………………whereofismasterunderGod,forthispresentvoyage………………………………………………….orwhosoeverelseshallgoformasterinthesaidship,orbywhatsoeverothernameornamesthesaidship,orthemasterthereof,isor shall be named or called; beginning the adventure upon the said goods andmerchandises from theloadingthereofaboardthesaidship,……………………………………………………………….uponthesaidship,etc.,andsoshallcontinueandendure,duringherabodethere,uponthesaidship,etc.Andfurther,untilthesaid shipwith all her ordnance, tackle, apparel, etc., and goods andmerchandiseswhatsoever shall bearrivedat…………………………………………………..uponthesaidship,etc,untilshehathmooredatanchortwenty-fourhoursingoodsafety;anduponthegoodsandmerchandises,untilthesamebetheredischargedandsafelylanded.Anditshallbelawfulforthe said ship, etc, in this voyage, to proceed and sail to and touch and stay at any ports or placeswhatsoever……………………..withoutprejudicetothisinsurance.The said ship, etc., goods and merchandises, etc., for so much as concerns the assured by agreementbetweentheassuredandassurersinthispolicy,areandshallbevaluedat……………………………………………Touchingtheadventuresandperilswhichwetheassurersarecontentedtobearanddotakeuponusinthis voyage: they areof the seas,menofwar, fire, enemies, pirates, rovers, thieves, jettisons, letters ofmartandcountermart,surprisals,takingsatsea,arrests,restraints,anddetainmentsofallkings,princes,andpeople, ofwhatnation, condition,orquality soever,barratryof themasterandmarines, andof allotherperils,lossesandmisfortunes,thathaveorshallcometothehurt,detriment,ordamageofthesaidgoodsandmerchandises,andship,etc.,oranypartthereof.Andincaseofanylossormisfortuneitshallbe lawfultotheassured, their factors,servantsandassigns,sue, labourandtravel for, inandaboutthedefence,safeguards,andrecoveryofthesaidgoodsandmerchandises,andship,etc.,oranypartthereof,without prejudice to this insurance; to the chargeswhereofwe, the assurers,will contribute each oneaccordingtotherateandquantityofhissumhereinassured.Anditisespeciallydeclaredandagreedthatno acts of the insurer or insured in recovering, saving, or preserving the property insured shall beconsidered as a waiver, or acceptance of abandonment. And it is agreed by us, the insurers, that thiswriting or policy of assurance shall be of as much force and effect as the surest writing or policy ofassuranceheretoforemadeinanyplaceinNigeria.Andsowe,theassurers,arecontended,anddoherebypromiseandbindourselves, eachone forhisownpart, ourheirs, executors, andgoods to theassured,their executors, administrators, and assigns, for the true performance of the premises, confessingourselves paid the consideration due unto us for this assurance by the assured, at and after the rateof…………………………..In Witness whereof we, the assurers, have subscribed our names and sums assuredin…………………………………………………………………………………………………………………

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N.B.–Corn,fish,salt,fruit,flourandseedarewarrantedfreefromaverage,unlessgeneral,ortheshipbestranded; and sugar, tobacco, hemp, flax, hides and skins arewarranted free from average, under tennairapercent,andallothergoods,alsotheshipandfreight,arewarrantedfreefromaverage,undersixnairapercentunlessgeneral,ortheshipbestranded.

SECONDSCHEDULE[Section128(2)]

RULESFORCONSTRUCTIONOFPOLICY

1. Where the subject matter is insured “lost or not lost”, and the loss has occurred before thecontract is concluded, the riskattaches,unlessat such time theassuredwasawareof the loss, and theinsurerwasnot.2. Where thesubjectmatter is insured “from”aparticularplace, theriskdoesnotattachuntil theshipstartsonthevoyageinsured.3. Where–

(a)ashipisinsured“atandfrom”aparticularplace,andsheisatthatplaceingoodsafetywhenthecontactisconcluded,theriskattachesimmediately;(b) the ship isnot at thatplacewhen the contract is concluded, the riskattachesas soonashearrivesthereingoodsafety,and,unlessthepolicyotherwiseprovides,itisimmaterialthatsheiscoveredbyanotherpolicyforaspecifiedtimeafterarrival;(c)chartedfreightisinsured“atandfrom”aparticularplace,andtheshipisatthatplaceingoodsafetywhenthecontractisconcludedtheriskattachesimmediately.Ifshebenottherewhenthecontractisconcluded,theriskattachesassoonasshearrivesthereingoodsafety;and(d) freightother thanchartered freight, ispayablewithout special conditionsand is insured “atandfrom”aparticularplace,theriskattachesprorataasthegoodsormerchandiseareshipped;providedthatiftherebecargoinreadinesswhichbelongstotheshipowner,orwhichsomeotherpersonhascontractedwithhimtoship,

theriskattachesassoonastheshipisreadytoreceivesuchcargo.4. Wheregoodsorothermoveablesareinsured“fromtheloadingthereof”,theriskdoesnotattachuntilsuchgoodsormoveablesareactuallyonboard,andtheinsurerisnotliableforthemwhileintransitfromtheshoretoship.5. Wheretheriskongoodsorothermoveablescontinuesuntiltheyare“safetylanded”,theyshallbelandedinthecustomarymannerandwithinareasonabletimeafterarrivalattheportofdischarge,andwheretheyarenotsolandedtheriskceases.

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6. Intheabsenceofanyfurther licenseorusage, the libertytotouchandsay“atanyportorplacewhatsoever” does not authorize the ship to depart from the course of her voyage from the port ofdeparturetotheportofdestination.7. Theterm“perilsoftheseas”refersonlytofortuitousaccidentsorcasualtiesoftheseasanddoesnotincludetheordinaryactionofthewindsandwaves.8. Theterm“pirates”includespassengerswhomutinyandriotswhoattacktheshipfromtheshore.9. Theterm“thieves”doesnotcoverclandestinetheftora theftcommittedbyanyoneof theshipcompany,whethercreworpassengers.10. Theterm“arrests,etc.,ofkings,princes,andpeople”referstopoliticalorexecutiveacts,anddoesnotincludealosscausedbyriotorbyordinaryjudicialprocess.11. Theterm“barratry”includeseverywrongfulactwillfullycommittedbythemasterorcrewtotheprejudiceoftheowner,or,asthecasemaybe,thecharterer.12. Theterm“allotherperils”includesonlyperilssimilarinkindtotheperilsspecificallymentionedinthepolicy.13. Theterm“averageunlessgeneral”meansapartiallossofthesubjectmatterinsuredotherthanageneralaverageloss,anddoesnotinclude“particularcharges”.14. Wheretheshiphasstranded,theinsurerisliablefortheexceptedlosses,althoughthelossisnotattributabletothestranding,providedthatwhenthestrandingtakesplacetheriskhasattachedand, ifthepolicybeongoods,thatthedamagedgoodsareonboard.15. Theterm“ship”includesthehull,materialsandoutfit,storesandprovisionsfortheofficersandcrew,andinthecaseofvesselsengagedinaspecialtrade,theordinaryfittingsrequisiteforthetrade,andalso, in the case of a steamship, themachinery, boilers, and coals and engine stores, if owned by theassured.16. Theterm“freight”includestheprofitderivablebyashipownerfromtheemploymentofhisshipto carryhis owngoods ormoveables, aswell as freight payable by a thirdparty, but doesnot includepassagemoney.17. The term “goods” means goods in the nature of merchandise, and does not include personaleffectsorprovisionsandstoresforuseonboard.18. In the absence of any usage to the contrary deck cargo and living animals shall be insuredspecifically,andnotunderthegeneraldenominationofgoods.

EXPLANATORYMEMORANDUMThisBillseekstomakecomprehensivelegalframeworkfortheregulationandsupervisionofallmannerofinsurancebusinessesinNigeria.Italsoseekstorepeal–

(a) InsuranceAct,Cap.I17,LawsoftheFederationofNigeria,2004;(b) MarineInsuranceAct,Cap.M3,LawsoftheFederationofNigeria,2004;(c) MotorVehicles(ThirdPartyInsurance)Act,Cap.M22,LawsoftheFederationofNigeria,2004;

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(d) NationalInsuranceCorporationofNigeriaAct,Cap.N54,LawsoftheFederationofNigeria,2004;and

(e) NigeriaReinsuranceCorporationAct,Cap.N131,LawsoftheFederationofNigeria,2004.