(These Determinations are updated as at 20th June 2011)

1. Determination 1 – 01/03/2011 and as amended on 20/10/2011 (amendments made to single investment exposure limits in Shares (b), Corporate Debts (c) and Deposits (d) stated in Table A in Determination # 1)
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2. Determination 2 – 23/08/2010
   (Determination No. 2 of 30/10/2002 is repealed and replaced by Determination No. 2 of 23/08/2010)
   Section 33 Proviso
   
   Where an insurer or any such person as is referred to in section 33 of the Act is a shareholder, director or employee of any company registered as a broker under the Act as on the date of registration, such insurer or person shall be required to dispose of such shares, or to relinquish such directorships or employment, as the case may be, either within a period of three months from the date of registration or within such period of time from the date of registration, as may be granted by the Board on a case by case basis.
   
   
3. Determination 3 – 30/10/2002 - Repealed by Section 15 of Act No. 03 of 2011
   Section 35 (b)
   
   The period for settlement of premia to be set at 60 days from the date on which the premium is
   payable.
   
   
4. Determination 4 – 30/10/2002
   Section 40 (3) (b)
   
   For the purpose of Section 40 (3) (b) the paid-up value of the policy shall be Rs. 5000/-.
   
   
5. Determination 5 – 30/10/2002
   Section 47 (2)
   
   Every insurer shall submit a copy of its annual audited accounts to the Board within a period of
   6 months from the close of the financial year.
   
   
6. Determination 6 – 30/10/2002
   Section 48 (1)
   
   Every insurer shall, submit an abstract in terms of Section 48 (1) of the Act to the Board within
   a period of six months after the close of the financial year.
   
   
7. Determination 7 - 30/10/2002
   Section 81 (h)
   
   An applicant desiring to be registered as a general insurance and/or long-term insurance
   broker shall submit professional indemnity insurance policies for a total value of Rs 1.5 million
   from two or more registered insurers.
   
   
8. Determination 8 – 30/10/2002
   

   Section 83 (a)
   Section 85 (3) (b)
   
   The maximum amount of the professional indemnity policy of insurance shall be Rs.5 million for
   the purposes of Sections 83 (a) and 85 (3) (b).

   Determination 8 – 08/02/2008 (With effect from 1st January 2009)

   Section 83 (a) and Section 85 (3) (b)

   (Determination No.8 of 30/10/2002 will be replaced by Determination No.8 of 08/02/2008 with effect from 1st January 2009)

   The maximum limit of the Professional Indemnity Policy of insurance shall be Rs. 10 million for the purposes of Sections 83(a) and 85 (3) (b) of the Regulation of Insurance Industry Act No. 43 of 2000.

9. Determination 9 – 12/07/2011
   (Determination No. 9 of 01/02/2011 is repealed and replaced by Determination No. 9 of 12/07/2011)
   
   Section 83 (c) of the Regulation of Insurance Industry Act, No. 43 of 2000 (RII Act) – Renewal of Registration Fee required to be paid by an insurance broker to the Insurance Board of Sri Lanka (IBSL).
   
   The renewal of registration fee required to be paid by an insurance broker to the IBSL is as follows:
   
   
   
   1. Where the broking commission income of an insurance broker as stated in the Returns submitted to the IBSL under Gazette Extraordinary No. 1642/16 of 25th February 2010, for the four quarters immediately preceding the due date of submission of the renewal of registration application, as stipulated in section 83 of the RII Act is Rs 3 million or less than Rs 3 million, the renewal fee is Rs 30,000/- per class of insurance business
   
   
   2. Where the broking commission income of an insurance broker as stated in the Returns submitted to the IBSL under Gazette Extraordinary No. 1642/16 of 25th February 2010, for the four quarters immediately preceding the due date of submission of the renewal of registration application, as stipulated in section 83 of the RII Act is above Rs 3 million, the renewal fee is Rs 50,000/- per class of insurance business
   
   
   
10. Determination 10 – 30/10/2002 and as amended on 12/07/2011 (Maximum Rate of Commission that may be paid by a broker to an insurance agent)
    Section 88
    
    For Long Term insurance business:-
    
    
    1. The maximum rate of commission that may be paid by an insurer to an insurance agent shall
       not exceed the percentages given below:-
       
       
       1. In respect of a non-single premium business- (that is regular premium business):
          
          

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

          
          
       2. In respect of single premium business, three per centum of the single premium for policies with term equal to or less than three years, increasing by half a per centum of the single premium for each year by which the policy term exceeds three years, subject to a maximum of six per centum of the single premium.
          
          
    2. The maximum commission that may be paid by an insurer to an insurance broker shall not
       exceed the percentages given below:-
       
       
       1. In the first year, one hundred and thirty five per centum of the maximum first year commission payable to an insurance agent; and
          
          
       2. In the second and subsequent years, the maximum commission payable to an insurance agent as per the table shown above.
          
          
    For General Insurance Business:-
    
    
    1. No insurer shall pay or contract to pay to an insurance agent and no insurance agent shall
       receive or contract to receive, by way of commission or remuneration in any form on any policy of general insurance and effected through an insurance agent an amount exceeding:
       
       
       1. where the policy relates to fire, motor, miscellaneous and other non-marine classes of insurance, 15 per centum of premium payable on the policy;
          
          
       2. where the policy relates to marine insurance, 10 per centum of premium payable on the policy.
          
          
    2. No insurer shall pay or contract to pay to an insurance broker and no insurance broker shall
       receive or contract to receive, by way of commission or remuneration in any form on any policy of general insurance and effected through the broker an amount exceeding:
       
       
       1. where the policy relates to fire, motor, miscellaneous and other non-marine classes of insurance, 20 per centum of premium payable on the policy;
          
          
       2. where the policy relates to marine insurance, 15 per centum of premium payable on the policy.
          
          

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

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

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

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

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

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

    1. where the policy relates to fire, motor, miscellaneous and other non-marine classes of insurance, 15 per centum of premium payable on the policy;
    2. where the policy relates to marine insurance, 10 per centum of premium payable on the policy.
    
    
11. Determination 11 - 25/05/2009 (with effect from 25.05.2009)
    
    (Determination No. 11 of 30/10/2002 is repealed and replaced by Determination No. 11 of 25.05.2009)
    
    Section 98
    
    For the purpose of Section 98 the sum assured should not exceed Rs 100,000,000/-.
    
    
12. Determination 12 – 31/05/2011
    
    Section 49 (b) of the Regulation of Insurance Industry Act, No. 43 of 2000 – Quarterly Returns of Insurers
    
    Every insurer shall, for every quarter commencing from the first day of April 2011, furnish to the Board, its quarterly returns in accordance with the revised Quarterly Returns Formats ( revised to be in line with the amendments to the Solvency Margin Rules) enclosed herewith.
    
    Such Returns are required to be furnished to the Board within forty-five days after the end of each quarter.
    
    Further, insurers who are required to report on a monthly basis are required to use the revised Quarterly Returns Format enclosed herein from the 01st day of June 2011 and furnish to the Board within such period of time as directed by the Board.
    
    
    
    1. Determination 01 (Formats)
       
       
    2. Solvency - General Insurance (Formats)
       
       
    3. Solvency - Life Insurance (Formats)
       
       
    4. Balance Sheet and Profit & Loss Account (Formats)
       
       


13. Determination 13 – 31/05/2011

Section 33 B (1) of the Regulation of Insurance Industry Act, No. 43 of 2000 – Notice for giving information regarding a person sought to be appointed, elected or nominated as a director of an Insurer

Every insurer seeking to appoint, elect or nominate a director is required to submit to the Insurance Board of Sri Lanka (IBSL) information requested in the attached notice in terms of section 33 B (1) of the Regulation of Insurance Industry Act No. 43 of 2000, along with the Form required to be filed with the Registrar General of Companies, prior to making of such appointment, nomination or election, as the case may be, and obtain the IBSL’s approval for the same.

Click here to download the Form and the Affidavit