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The Insurance Act, 1938

( ACT NO. IV Of 1938 )

Actuarial report and abstract
13. (1) Every insurer carrying on life insurance business shall, in respect of the life insurance business transacted by him in Bangladesh, and also in the case of an insurer specified in sub-clause (a) (ii) or sub-clause (b) of clause (9) of section 2 in respect of all life insurance business transacted by him, once at least in every 1[two] years cause an investigation to be made by an actuary into the financial condition of the life insurance business carried on by him, including a violation of his liabilities in respect thereto and shall cause an abstract of the report of such actuary to be made in accordance with the regulations contained in Part I of the Fourth Schedule and in conformity with the requirements of Part II of that Schedule.
 
 
 
 
(1A) and (1B) [Omitted by section 7 of the Insurance (Amendment) Ordinance, 1984 (Ordinance No. L of 1984).]
 
 
 
 
(2) The provisions of sub-section (1) regarding the making of an abstract shall apply whenever at any other time an investigation into the financial condition of the insurer is made with a view to the distribution of profits or an investigation is made of which the results are made public.
 
 
 
 
(3) There shall be appended to every such abstract as is referred to in sub-section (1) or sub-section (2) a certificate
 
 
signed by the principal officer of the insurer that full and accurate particulars of every policy under which there is a liability either actual or contingent have been furnished to the actuary for the purpose of the investigation.
 
 
 
 
(4) There shall be appended to every such abstract a statement, in conformity with the requirements of Part II of the Fifth Schedule and prepared in accordance with the regulations contained in Part I of that Schedule, of the life insurance business in force at the date which the accounts of the insurer are made up for the purposes of such abstract:
 
 
 
 
Provided that, if the investigation, referred to in sub-sections (1) and (2) is made annually by any insurer, the statement need not be appended every year but shall be appended at least once in every three years.
 
 
 
 
 
 
(5) Where an investigation into the financial condition of an insurer is made as at a date other than the expiration of the year of account, the accounts for the period since the expiration of the last year of account and the balance-sheet as at the date at which the investigation is made shall be prepared and audited in the manner provided by this Act.
 
 
 
 
 
 
 
 
(6) The provisions of this section relating to life insurance business shall apply also to any such sub-class of miscellaneous insurance business as may be prescribed in this behalf:
 
 
 
 
 
 
 
 
Provided that no sub-class of miscellaneous insurance business shall be prescribed under this sub-section if the insurance business comprised in the sub-class consists of insurance contracts which are terminable by the insurer at intervals not exceeding twelve months and under which if a claim arises, the insurer's liability to pay benefit ceases within one year of the date on which the claim arose:
 
 
 
 
 
 
 
 
Provided further that the Chief Controller of Insurance may authorise such modifications and variations of the regulations contained in Part I of the Fourth and Fifth Schedules and of the requirements of Part II of those Schedules as may be necessary to facilitate their application to any such sub-class of miscellaneous insurance business:
 
 
Provided also that if the Chief Controller of Insurance is satisfied that the number and amount of the transactions carried out by an insurer in any such sub-class of miscellaneous insurance business is so small as to render periodical valuation unnecessary, he may exempt that insurer from the operation of this sub-section in respect of that sub-class.
 
 
 
 
(7) The valuation of liabilities under sub-section (1) shall be carried out in such a manner and on such basis that the actuarial reserves calculated in that manner and on that basis are not less than the actuarial reserves calculated in the manner and on the basis laid down by the Chief Controller of Insurance in this behalf.

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    Sub-sections 9, (9A) and (9B) were substituted for the original sub-section (9), by section 4 of the Insurance (Amendment) Act, 1940 (Act No. XX of 1940)
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