Insurance (Amendment) Act, 2023 (Act 4 of 2023)

Summary

This Act amends the Insurance Act, 2010 to extend criminal liability for offences under that Act beyond corporations to include partnerships, limited liability partnerships (LLPs), exempted limited partnerships, and unincorporated associations, as well as the individuals who manage or control them. It adds definitions for 'partnership', 'limited liability partnership' and 'exempted limited partnership' by cross-reference to the relevant Cayman Islands partnership legislation, and amends section 39 of the Insurance Act, 2010 (offences by corporations) to also cover these other business structures.

• Partnerships, LLPs, exempted limited partnerships: Where an insurance offence is committed by a partnership, LLP or exempted limited partnership with the consent, connivance, or neglect of a partner concerned in its management, control or conduct of business, that partner as well as the entity itself commits the offence and can be prosecuted.
• Unincorporated associations: A parallel rule is inserted for unincorporated associations, making a person concerned in management or control personally liable alongside the association.
• Corporations (section 39(2)): The Act changes existing language in section 39(2) from 'director' to 'senior officer', broadening the class of individuals who can be held liable when an offence is committed by a corporation.

This is a liability-extension amendment rather than a document creating new filing, reporting or licensing duties. It applies to any person or entity conducting insurance business (or otherwise subject to offences under the Insurance Act, 2010) that is structured as a partnership, LLP, exempted limited partnership, or unincorporated association, and to the individuals (partners, senior officers, or persons in management/control) associated with them.

Key obligations

• Partners concerned in the management or control of a partnership or LLP, or partners taking part in the conduct of business of an exempted limited partnership, may be personally liable for an insurance offence committed by that entity if it is proved to have been committed with their consent, connivance, or attributable to their neglect.
• Persons concerned in the management or control of an unincorporated association (other than a partnership, LLP, or exempted limited partnership) may be personally liable for an insurance offence committed by that association under the same consent/connivance/neglect test.
• Senior officers (previously only 'directors') of a corporation may be held liable for offences committed by that corporation under section 39(2) of the Insurance Act, 2010.

Applies to

insurers, partnerships, limited liability partnerships, exempted limited partnerships, unincorporated associations, directors/senior officers, partners

Related documents

• This document amends Insurance Law, 2010 (Law 32 of 2010)