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Short-Term Insurance Act, 1998 (Act No. 53 of 1998)

Regulations

Regulations under the Short-term Insurance Act, 1998 (Act No. 53 of 1998)

Part 3 : Limitation on Assets (Section 30)

3.3 Assets of asset-holding intermediary

 

For the purposes of regulation 3.2, the assets of the kinds set out in Schedule 1 of an asset-holding intermediary of a short-term insurer, other than a claim thereof against that short-term insurer, shall be deemed to be assets of the short-term insurer—

(a) in place of the net loans made by it to the asset-holding intermediary, to the extent determined in accordance with the formula—

A/B x C

(b) in place of its shares, other than equity shares, in the asset-holding intermediary, to the extent determined in accordance with the formula—

A/B x D

(c) in place of its equity shares in the asset-holding intermediary, to the extent determined in accordance with the formula—

E x F/G

in which formulae—

A represents the market value of each asset or kind or category of assets specified in column 1 of the Table to this Part of the asset-holding intermediary;
B represents the aggregate market value of all the assets of the asset-holding intermediary;
C represents the amount of any claim arising from any net loans to the asset-holding intermediary;
D represents the value of shares, other than equity shares, held by the short-term insurer in the asset-holding intermediary, plus or minus the amount to be apportioned to those shares by virtue of the excess or shortfall of the assets of the asset-holding intermediary over its liabilities;
E represents A minus the sum of the amounts determined in accordance with the formulae referred to in paragraphs (a) and (b);
F represents the value of the equity shares held by the short-term insurer in the asset-holding intermediary;
G represents the aggregate value of all equity shares of the asset-holding intermediary.