Section 4: Classification of insurance business

4. Classification of insurance business (1) For the purposes of this Act— (a) insurance business is divided into either long term insurance business or general insurance business; (b) subject to subsection (2)— (i) “long term insurance business” means insurance business of any of the classes described in Part I of the First Schedule; (ii) “general insurance business” means insurance business, other than long term insurance business, consisting of the classes described in Part II of the First Schedule. (2) In determining the classification of insurance business— (a) the effecting or carrying out of a contract of insurance whose principal object is within any one of the classes described in Part I of the First Schedule, but which contains related and subsidiary provisions which are not within any of those classes in that Part, shall be deemed to constitute long term insurance business; (b) the reinsurance of risks under a contract of insurance shall be treated as insurance business of the class to which the contract would have belonged if it had been entered into by the reinsurer. (3) The Commission may— (a) by rule, amend the First Schedule and, by such amendment, specify new classes of insurance business; [Issue 9] I15 – 10 Revised Laws of Mauritius (b) by a determination, declare that a contract of insurance shall form part of a particular class of insurance business, and where so determined, the contract shall be deemed to form part of, and to be subject to the requirements pertaining to, that class. (4) — [S. 4 amended by s. 57 (3) (a) of Act 15 of 2012 w.e.f. 1 November 2012.]