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Chapter
VII
Capital and Profit Allocation |
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7 |
21. (a) The State
shall be the sole share holder of the Myanma Insurance. The
authorize capital of the
Myanma
Insurance is kyats 300 millions, of which kyats 150 millions
shall be fully paid up by the
State.
The balance of the authorized capital may be subscribed by the
State as and when necessary.
(b) The authorized capital and
paid-up capital of the Myanma Insurance may be increased with
the
permission
of the Government.
22. The Myanma Insurance shall maintain the following funds:-
(a) General Reserve Fund;
(b) Life Assurance Fund;
(c) General Insurance Fund;
23. The following sums shall be paid to the General Reserve
Funds:-
(a) initial subscription by the
State of kyats 50 millions;
(b) a sum equivalent to ten per
cent of the profits allocated after actuarial valuation of the
Life
Assurance
business;
(c) a sum equivalent to ten per
cent of the balance after subscribing to the Insurance fund
from the
annual
operating surplus of each class of General Liability Insurance.
(24) The percentage of subscription to the General Reserve fund
may be increased with the permission of
the Government. The total
amount of the General Reserve Fund may exceed the paid-up capital
of
Myanma Insurance.
(25) The following sums shall be paid to the Life Assurance
Fund:-
(a) initial subscription by the
State of kyats 600 millions;
(b) the surplus after deducting
the expenditure from the annual income of the Life Assurance
business.
(26) A sum equivalent to forty per cent of the annual premium
income of each class of General insurance
from out of the surplus of the
General Insurance business or it such operating surplus falls
short of forty
per cent of the annual premium
income, the whole surplus shall be paid in to the General Insurance
Fund.
(27) The Myanma Insurance shall, after paying ten per cent from
the profits accrued after actuarial valuation
of the Life Assurance business
to the General Reserve Fund allocate the remaining ninety per
cent to the
Life Assurance policy-holders.
(28) The Myanma Insurance shall, after subscribing to the Insurance
Fund subscribe ten per cent to the
General Reserve Fund from the
surplus of each General Insurance business and pay the remaining
ninety per cent to the Government.
(29) In the event a deficit occurs in the operation of the Insurance
business in respect of a class of insurance
business the Myanma Insurance
shall, in the First insurance utilize the Insurance Fund of
that class. If
the Fund is insufficient, it
shall draw upon the Reserve Fund and if the Reserve Fund is
still insufficient,
the State shall be responsible
for settlement of the outstanding claims.
(30) The Myanma Insurance shall open an account and deposit
the working capital required for its business
with the Central Bank of Myanmar
or with any State-owned financial institution.
(31) The Myanma insurance :-
(a) shall open a foreign exchange
account with the relevant bank in order that acceptance of insurance
and settlement of claims may be made in
foreign exchange;
(b) after
deposit in the foreign exchange account foreign exchage equivalent
to kyats 5 millions as an
initial deposit, may deposit the foreign
exchange received for the business and disburse payments
payable for
the business;
(c) when the
balance of the account is insufficient to meet commitments in
foreign exchange, it may be
replenished
with the permission of the Government. |
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