Section 17: Separation of fund

17. Separation of fund (1) Subject to subsection (2), an insurer shall, regardless of the category of its insurance business, set up and maintain, for so long as it is under liability in respect of an insurance policy or claim relating to that fund, separate insurance funds for its Mauritian policies and for its non-Mauritian policies. (2) The Commission may, having regard to the small number of insurance policies and their relative value in any one of the insurance fund, allow the insurer to maintain only one insurance fund for both the Mauritian and the non-Mauritian policies. [Issue 1] I15 – 18 Revised Laws of Mauritius (3) An insurer shall— (a) maintain the solvency margin, make such technical provisions and establish such reserve or fund, invest assets and apply the solvency rules in respect of each insurance fund as if they were separate businesses; (b) pay into the corresponding insurance fund all money received by it in respect of policies to which the insurance fund relates; (c) carry to the insurance fund all income and gains arising from the investment of the assets of that insurance fund. (4) Except in a winding up, and subject to any applicable rules, an insurer shall apply the assets of an insurance fund only to meet such liabilities and expenses as are properly attributable to that insurance fund. (5) An insurer shall, within each insurance fund established under subsection (1), establish and maintain, in respect of each category of insurance business, such assets, reserves and designated fund and in such manner as are referred to in this Part and under applicable solvency rules.