Section 63: Application of funds on winding up

63. Application of funds on winding up (1) Notwithstanding any other enactment, this section shall have effect with respect to the application of funds on the winding up of an insurer, and where any provision of this section is inconsistent with the provision of any other enactment, the provision of this section shall, to the extent of the inconsistency, prevail over the other provision. (2) Any debt or other liabilities arising out of contracts of insurance issued or underwritten by an insurer shall rank in priority before any other claim against the assets of the insurer. (3) Subject to the other provisions of this section— (a) the assets representing the insurance fund maintained by the insurer with respect to policy liabilities in Mauritius or with respect to policy liabilities outside Mauritius shall be applied only for meeting the liabilities of the fund to which it relates; (b) where the assets representing an insurance fund exceed the liabilities of that fund, the surplus assets may be applied to meet the liabilities of the other insurance fund which is deficient; and (c) any deficiency subsisting after application of the assets of the insurance funds under paragraphs (a) and (b) shall be met out of the other assets of the insurer, and any unsatisfied liabilities to a policy shall have priority over any other claim or liabilities. (4) Where the insurer is a long term insurer— (a) the assets representing the designated funds maintained by it under section 18 shall be available only for meeting the liabilities of the insurer attributable to that fund; (b) the other assets of the insurer shall be available only for meeting the liabilities of the insurer attributable to its other insurance business; and (c) any surplus asset remaining after application of paragraphs (a) and (b) shall be available for meeting any liabilities not attributable to any insurance policies. Sub-Part B – Voluntary Winding Up