Laws and Regulations applicable to Insurance Industry in Sri Lanka

The Regulation of Insurance Industry Act, No. 43 of 2000 is a key piece of legislation that governs the insurance industry in Sri Lanka. It has been amended several times to update and refine the regulatory framework for insurance companies operating within the country. Here are the details of the Act and its amendments based on the provided context:

  • This is the principal enactment that provides the foundation for the regulation of the insurance industry in Sri Lanka.
  • This amendment act made several changes to the principal enactment, including:
    • The amendment of Section 4, which involved changes to the composition of the governing body, specifically the substitution of the Registrar-General of Companies in place of a previously mentioned entity.
    • The introduction of new sections such as 33A to 33E, which relate to the appointment of directors of an insurer and the conditions associated with such appointments.
    • The insertion of Part VIIIA, which deals with the registration of loss adjusters, outlining the prohibition against acting as a loss adjuster without a Certificate of Registration and the qualifications required for registration.
    • The addition of new sections like 94A and 95A, which require the Board to be informed of any alterations in the particulars submitted with an application for registration and may require an increase in paid-up share capital.
  • This amendment act further refined the regulatory framework by:
    • Changing the long title of the principal enactment to reflect the establishment of the Insurance Regulatory Commission of Sri Lanka instead of an Insurance Board.
    • Making consequential amendments to other laws as necessary to align with the updated title and functions of the Insurance Regulatory Commission.
  • This amendment included changes to Section 12 of the principal enactment, which expanded the list of entities that are exempt from certain provisions of the Act to include the National Insurance Trust Fund Board.
  • It also amended Section 31 to introduce new requirements for insurers in relation to reinsurance.

These acts and their amendments provide a comprehensive legal framework for the regulation of the insurance industry in Sri Lanka, ensuring that insurers operate in a manner that is transparent, responsible, and in the best interests of policyholders.

  1. Securities and Exchange Commission of Sri Lanka Act, No. 36 of 1987:
    • Mentioned on the same page, this act is relevant to the insurance industry as it defines entities such as stock exchanges, stock brokers, stock dealers, and market intermediaries.
  2. Finance Business Act, No. 42 of 2011:
    • Although not directly an insurance act, it is related to the insurance industry as it includes rules for the establishment and operation of a scheme of insurance of deposits (Page 441).
  3. National Insurance Trust Fund Act, No. 28 of 2006:
    • Referenced in the “Acts of Parliament 2017.pdf” on page 276, this act establishes the National Insurance Trust Fund and mentions its exemption from being listed on a stock exchange.

LankaLAW Newsletter

We don’t spam! Read our privacy policy for more info.

, ,

Please Login to Comment.