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Insurance Act, 2017 (Act No. 18 of 2017)

Chapter 10 : Administration of Act

Part 2 : Powers and functions of Prudential Authority

66. Exemptions

 

(1) The Prudential Authority may exempt any insurer or a controlling company from, or in respect of, a provision of this Act for a period and on conditions determined by the Prudential Authority—
(a) if practicalities impede the strict application of a specific provision of this Act;
(b) if a strict application of a specific provision of this Act is not proportional to the nature, scale and complexity of the business of an insurer or an insurance group;
(c) for developmental, financial inclusion and transformation objectives necessary to facilitate the progressive or incremental compliance of this Act by a specific insurer, including meeting the targets envisaged by the Financial Sector Code; and
(d) if the granting of the exemption will not—
(i) conflict with the public interest or prejudice policyholders; or
(ii) undermine the achievement of the objective of this Act.

 

(2) Any exemption may apply to insurers or controlling companies generally or be limited in its application to particular kinds or types of insurers or controlling companies, which may be defined either in relation to a category, kind, size or in any other manner.

 

(3) Any exemption may be granted subject to any conditions specified by the Prudential Authority.

 

(4) Any exemption in respect of which an insurer or controlling company has to comply with conditions, lapses whenever the insurer or controlling company contravenes or fails to comply with any such conditions.

 

(5) The Prudential Authority—
(a) must publish an exemption on the official website;
(b) may, at any time, by notice to the insurer or controlling company and on the official website withdraw any exemption, wholly or in part and on any ground which the Prudential Authority determines sufficient.