Section 2: Interpretation

2. Interpretation In this Act— “Act” includes regulations made under this Act; “actuary” means a person— (a) holding such actuarial qualifications as may be prescribed; and (b) appointed as actuary of an insurer with the approval of the Commission in terms of section 40; “advertisement” includes every form of advertising, whether in a publication or by the display of notices or by means of circulars or other documents or by an exhibition of photographs or cinematograph films or by way of sound broadcasting, television or any other electronic media; “affiliated company” means a company which— (a) stands in relation to another body corporate as a parent or subsidiary company of that body corporate; or I15 – 3 [Issue 8] Insurance Act (b) is a body corporate that is a parent or subsidiary of a body corporate referred to in paragraph (a); or (c) is, in relation to another body corporate, a member of the same group of companies by virtue of common ownership or control; “assigned capital”, in relation to a foreign company incorporated outside Mauritius and having a branch in Mauritius, means capital consisting of funds transferred from abroad and such other funds as may be determined by the Commission; “associate” has the meaning assigned to it in the Second Schedule; “auditor” means a person— (a) qualified to act as auditor under the Financial Reporting Act; and (b) appointed as auditor of an insurer with the approval of the Commission in terms of section 40; “authorised agent” has the same meaning as in the Companies Act; “balance sheet date” has the same meaning as in the Companies Act; “bank” has the same meaning as in the Banking Act; “captive insurance business” means a captive insurance business of a category specified in the Schedule to the Captive Insurance Act; “category”, in relation to an insurance business, means general insurance business and long term insurance business; “Chief Executive” has the same meaning as in the Financial Services Act; “claims professional” means a person referred to in section 78; “class”, with reference to insurance policies, means a class of policies of such description as may be specified in the First Schedule within the long term insurance business or general insurance business, as the case may be, and includes part of a class; “Commission” means the Financial Services Commission established under the Financial Services Act; “company” and “public company” have the same meaning as in the Companies Act; “Compensation Fund” means the Insurance Industry Compensation Fund established under section 88; “conservator” means a conservator appointed under section 106; [Issue 8] I15 – 4 Revised Laws of Mauritius “controller” has the same meaning as in the Financial Services Act; “corporation” has the same meaning as in the Financial Services Act; “Court” means the Bankruptcy Division of the Supreme Court; “derivative” has the same meaning as in the Securities Act; “designated fund”, in relation to section 18, means a fund established by a long term insurer in respect of a class of its long term insurance business or part of a class of such business; “director” has the meaning assigned to it by section 128 of the Companies Act, and includes, in the case of— (a) a foreign company, an authorised agent; (b) a partnership, the manager or a partner entitled to manage the partnership; (c) any other body, whether corporate or unincorporated, a person exercising alone or with other persons, the direction and control of d established by a long term insurer in respect of a class of its long term insurance business or part of a class of such business; “director” has the meaning assigned to it by section 128 of the Companies Act, and includes, in the case of— (a) a foreign company, an authorised agent; (b) a partnership, the manager or a partner entitled to manage the partnership; (c) any other body, whether corporate or unincorporated, a person exercising alone or with other persons, the direction and control of the management of its business or affairs; and (d) a sole proprietorship, the individual proprietor; “Enforcement Committee” means the Enforcement Committee established under section 52 of the Financial Services Act; “established surplus” and “established deficit”, in relation to section 18, mean any amount shown by an actuarial investigation to be an amount by which the assets representing a designated fund, or representing any part of such fund, exceed or, as the case may be, are less than the liabilities of the insurer attributable to that fund or that part of the fund; “external insurance business”, subject to such other restrictions or limitations as may be prescribed, means insurance business which is restricted by a licence issued under section 11 to only non-Mauritian policies; “external insurer” means a corporation licensed under section 11 to carry on external insurance business; “financial crime” has the same meaning as in the Financial Services Act; “financial statements” has the same meaning as in the Companies Act; “foreign company” has the same meaning as in the Companies Act; “FSC Rules” means rules made by the Commission under section 130; “general insurance business” has the meaning assigned to it by section 4; I15 – 5 [Issue 9] Insurance Act “general insurance policy”— (a) means a policy, other than a long term insurance policy, of a class specified in Part II of the First Schedule; and (b) includes a policy which contains related or subsidiary provision within another class, and a reinsurance contract in respect of such policy; “general insurer” means an insurer conducting general insurance business; “general reinsurance treaty” means a reinsurance treaty in respect of a general insurance policy; “guidelines” has the same meaning as in the Financial Services Act; “insurance agent” means a person who, with the authority of an insurer and not being an employee of the insurer, acts on behalf of the insurer in the initiation of the insurance business, the receipt of proposals, the issue of policies, the collection of premiums, the settlement of claims or performs such other activities related to insurance as the Commission may approve; “insurance broker” means a person who arranges insurance business with insurers on behalf of prospective policy holders, or as a representative of a policy holder, and includes a reinsurance broker carrying on reinsurance brokering for an insurer; “insurance business”, subject to section 4, means the business of undertaking liability, by way of insurance or reinsurance, under long term insurance policies or general insurance policies, as the case may be, and includes external insurance business and the business of a professional reinsurer; “insurance manager” means a person who carries on, or holds himself out as carrying on, the business of managing insurance business originating from outside Mauritius or from a captive insurance business, and whose activities consist of accepting an appointment fr of undertaking liability, by way of insurance or reinsurance, under long term insurance policies or general insurance policies, as the case may be, and includes external insurance business and the business of a professional reinsurer; “insurance manager” means a person who carries on, or holds himself out as carrying on, the business of managing insurance business originating from outside Mauritius or from a captive insurance business, and whose activities consist of accepting an appointment from any insurer or captive insurer licensed under the Captive Insurance Act to— (a) manage any part of its business; or (b) exercise managerial functions in the insurer’s business; or (c) be responsible for maintaining accounts or other records of such an insurer; and in this context, “management” includes authority to enter into contracts of insurance on behalf of the insurer under the terms of the appointment; “insurance policy” includes a contract of insurance to provide policy benefits; “insurance salesperson” means a natural person who solicits proposals for and negotiates insurance on behalf and with the authority of an insurer or an insurance agent, not being its employee or officer; “insurer” means a person carrying on a category of insurance business; [Issue 9] I15 – 6 Revised Laws of Mauritius “International Financial Reporting Standards” has the same meaning as in the Financial Reporting Act; “licensee” means any person licensed under this Act; “linked long term policy” means a long term insurance policy of the class described in Part I of the First Schedule; “long term insurance business” has the meaning assigned to it by section 4; “long term insurance policy” means— (a) a policy of a class specified in Part I of the First Schedule ;and (b) includes a policy which contains related or subsidiary provision within another class, and a reinsurance contract in respect of such policy; “long term insurer” means an insurer licensed to carry on long term insurance business; “major contract” has the same meaning as in the Companies Act; “Mauritian policy” means an insurance policy which is issued by an insurer licensed under this Act in relation to risks situated in Mauritius; “Minister” means the Minister to whom responsibility for the subject of financial services is assigned; “non-Mauritian policy” means an insurance policy which is issued by an insurer licensed under this Act in relation to risks situated outside Mauritius; “officer”— (a) means a director, the chief executive officer, the senior manager or the chief internal auditor; and (b) includes a person, by whatever name called, holding similar position and responsibilities; “personal lines business” means general insurance business in respect of which the policy holder is a natural person; “policy benefits”— (a) means one or more sums of money, services or other benefits; and (b) includes, in the case of a long term policy, an annuity; “policy holder” means a person who enters into a contract of insurance, and includes a person entitled to be provided with or enforce the policy benefits under an insurance policy; “premium” means the consideration given or to be given in return for an undertaking to provide policy benefits under specified circumstances; “prescribed fee” means such processing fee or annual fee as may be prescribed; I15 – 7 [Issue 8] Insurance Act “professional reinsurer” means a corporation licensed under this Act to carry on only reinsurance business; “protected cell of insurance, and includes a person entitled to be provided with or enforce the policy benefits under an insurance policy; “premium” means the consideration given or to be given in return for an undertaking to provide policy benefits under specified circumstances; “prescribed fee” means such processing fee or annual fee as may be prescribed; I15 – 7 [Issue 8] Insurance Act “professional reinsurer” means a corporation licensed under this Act to carry on only reinsurance business; “protected cell company” means a company incorporated as, or converted into, a protected cell company in accordance with the Protected Cell Companies Act; “registered person” means any person registered under this Act; “reinsurance contract” means a contract whereby an insurer reinsures the risk insured by him, or part of that risk, with another insurer or reinsurer; “reinsurance treaty” means a reinsurance arrangement in respect of an insurance policy; “reinsurer” means a person who carries on reinsurance business; “related company”— (a) has the same meaning as in the Companies Act; (b) in relation to an insurer, includes any other entity related to it in any manner provided for in section 2 (2) of the Companies Act; “relevant Acts” has the same meaning as in the Financial Services Act; “repealed Act” means the Insurance Act 1987; “resident” has the same meaning as in the Income Tax Act; “Review Panel” means the Financial Services Review Panel established under section 54 of the Financial Services Act; “risk” means a possibility that a particular event may occur during the period for which an insurance policy is operative; “risk situated in Mauritius” means— (a) in the case where the insurance relates to property and buildings, or to buildings and the contents, in so far as the contents are covered by the same insurance policy, any risk related to property situated in Mauritius; (b) in the case where the insurance relates to vehicles of any type, any risk related to any vehicles registered in Mauritius; (c) in the case where the insurance relates to travel or holiday risks, whatever the class concerned, any risk related to travel or holiday if the policy covering the risk is of a duration not exceeding one year and the policy is issued in Mauritius; (d) in the case where the insurance relates to any risk of any kind, other than a risk specified in paragraphs (a), (b) or (c), any risk of such kind if the policy holder is resident in Mauritius; “rule” means a rule made by the Commission; “share”, in the case of any body corporate or unincorporated other than a company, means an interest in the capital of that body; [Issue 8] I15 – 8 Revised Laws of Mauritius “significant shareholder” has the meaning assigned to it by the Second Schedule; “solvency margin” means the solvency margin required under section 15; “solvency rules” means rules made by the Commission under sections 23 and 130; “special administrator” means a special administrator appointed under section 110A; “specified” means specified in rules made by the Commission; “stated capital”— (a) means such amount required as stated capital and expressed in rupee denomination or, notwithstanding the Companies Act, in any other currency approved by the Commission; and (b) includes, in the case of— (i) a foreign company, its assigned capital; (ii) a partnership, its paid-up capital; (iii) any other body, whether corporate or unincorporated, an amount corresponding to a non-distributable fund or deposit as the Com ified” means specified in rules made by the Commission; “stated capital”— (a) means such amount required as stated capital and expressed in rupee denomination or, notwithstanding the Companies Act, in any other currency approved by the Commission; and (b) includes, in the case of— (i) a foreign company, its assigned capital; (ii) a partnership, its paid-up capital; (iii) any other body, whether corporate or unincorporated, an amount corresponding to a non-distributable fund or deposit as the Commission may specify; (iv) a sole-proprietorship, a deposit or a professional indemnity insurance cover as the Commission may specify; “subsidiary” has the meaning assigned to it by sections 3 and 4 of the Companies Act; “substantial shareholder” has the same meaning as in the Companies Act; “supervisory body” means a regulatory or supervisory body having similar functions as the Commission in relation to the supervision of the insurance business or other financial services; “technical provisions” means provisions based on actuarial principles required to be made in the accounts of an insurer to meet its underwriting liabilities. [S. 2 amended by s. 3 of Act 16 of 2007 w.e.f. 28 September 2007; s. 3 of Act 6 of 2015 w.e.f. 29 April 2015; s. 20 (3) (a) of Act 32 of 2015 w.e.f. 29 January 2016; s. 28 of Act 18 of 2016 w.e.f. 7 September 2016.]