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26 August 1961

Nigeria Government Gazette supplement dated 1961-08-26 number 62 part C

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                                                                                         C 435
  Supplement to Official Gazette Extraordinary No. 62, Vol. 48; 26th August,
                                                                        1261—Part C
      Thefollowing Bills, which will in due course be presented to Parliament
 -for enactment, are published for general information.

                          INSURANCE COMPANIES BILL

                                EXPLANATORY MemMorRANDUM

     This Bill seeks to give effect to recommendations made from time to time
.. for the better investigation and control of the activities of insurance companies
      both corporate and unincorporate in Nigeria by registration of insurers.
      The main feature ofthebill is that there shall be a margin of solvency as the
      test for registration, since any other control by way of deposit, for example,
      would tie upcapital unduly.
        In general terms, the Bill envisages that there should be no discrimination
      between Nigerian or United Kingdom insurers and foreign insurers ; and
      while insurers are required to meet obligations undertaken, the requirements ~
      of the law should not be so onerous as to create hardship in complying with
      them. °                                               .

        Governmentintends also ‘to introduce a bill setting out a code of marine
      insurance basedonthat of the United Kingdom,since this presentbill relates
      to insurance in general terms.
         Insurance business undertaken by.the Government of a Region and not
      extending beyond that-Region is excluded by clause 3 (a), and provision is
      made for exemptionof insurers or insurance business by clauses 3 (c) and 24.
      _ Both companies and associations of underwriters may be registered since
      different principles will apply, and provision is also made in clauses 7,8 and 9
      for the review ofregistration and for persons aggrieved by refusal of registra-
      tion or cancellation of registration to appeal to the Governor-General.
        The use of the word “insurance” or its grammatical variations will, after a
      lapse of time, be an offence in special cases, and clause 36 seeks to provide
      accordingly.
         Certain Acts of the Parliamentof the United Kingdom,being statutesof .
      general application and inforce in Nigeria are to be repealed, and clause 45
nee




: will give effect to the repeal.         .            .
                                                       ZANA BUKAR DircHaRma,
                                                  Minister of Commerce and Industry

                          INSURANCE COMPANIES BILL

                                _ ARRANGEMENT OF CLAUSES ~
      Clause                                  _
       ' 4, Short title, etc.
                                      .                wo
                                  ~ Part I—PReLIMinary
         2. Interpretation.                           cet
         3. Application of Act.

                              Parr II—RzcisTRATION
         4, Margin of solvency.                       .
       _ 5. Registrar of Insurance.                 ws
       6, Insurance business prohibited in certain.cases.
                     fe


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