Insurance Act

Part 2 of 2 · provisions 201–254

This Act may be cited as the Insurance Act.

Jurisdiction: Kenya
Instrument: Act or statute
Citation: Cap. 487
Version: 11 Dec 2023
Language: en
Official source: View official record ↗
Complete work: View statute overview

Source attribution: Source: Kenya Law

Statute overview

About this statute

This Act may be cited as the Insurance Act. An insurer is treated as carrying on a particular class of insurance business while any liability for that class remains unsatisfied. The Commissioner may, with Board approval, direct an insurer who has not issued a new long-term policy for twelve months to propose transfer or amalgamation; the Commissioner may frame transfer schemes, order investigations, or apply to the High Court; disposing or misappropriating closed fund assets is an offence with fines or imprisonment and refund obligations. An investigator may investigate affairs of associated persons for a section 9 investigation with the Board's written consent; before starting, the investigator must, if requested, serve a copy of that consent on the associated person. Investigators may require persons (including companies, bodies, associations, funds and natural persons) to assist, appear for examination and produce books; investigators may take and copy produced documents; refusing, giving false information, or obstructing is an offence punishable by a fine up to two thousand shillings; those examined must answer questions and, if they claim self-incrimination before answering, the question and answer are inadmissible in criminal proceedings except for the subsection (4) offence.

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Legal text

Provisions of Insurance Act

Showing 54 of 254

Part XVII

ADVERTISEMENTS AND STATEMENTS

167
ADVERTISEMENTS AND STATEMENTS - 167. Publication of returns
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Persons required to deposit accounts with the Commissioner must not publish those documents in a form different from that furnished to the Commissioner; a true and accurate summary may be published for publicity, and contravention is an offence liable to a fine not exceeding two thousand shillings.

Section 167. Publication of returns Section 167(1) No person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") shall publish an account, abstract, report or other document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") deposited with or required to be deposited with the Commissioner ("the officer appointed under;") by or under this Act in a form other than that in which it has been furnished to the Commissioner ("the officer appointed under;") : Provided that nothing in this subsection shall prevent a person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") from publishing a true and accurate summary from any such account, abstract, report or other document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") for the purpose of publicity. Section 167(2) A person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") who contravenes the provisions of subsection (1) shall be guilty of an offence and liable to a fine not exceeding two thousand shillings.

Part XVIII

LEGAL PROCEEDINGS AND APPEALS

168
LEGAL PROCEEDINGS AND APPEALS - 168. Protection for officials acts
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Officials (the Cabinet Secretary, the Board, and persons authorized by them) are protected from legal proceedings for acts done or intended to be done in good faith under this Act, and those officials are exempt from payment of compensation for loss or harm caused by such acts.

Section 168. Protection for officials acts Section 168(1) No legal proceedings shall be instituted in any court ("the High Court;") against the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the National Treasury;") or the Board ("the Board of Directors of the Authority constituted under;") or any person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") authorized by the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the National Treasury;") or the Board ("the Board of Directors of the Authority constituted under;") for anything done or intended to be done in good faith under this Act. Section 168(2) No compensation shall be payable to any person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") for any loss, damage or harm directly or indirectly caused by anything done or intended to be done in good faith by the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the National Treasury;") or the Board ("the Board of Directors of the Authority constituted under;") or any person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") authorized by the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the National Treasury;") or the Board ("the Board of Directors of the Authority constituted under;") under this Act. [Act No. 11 of 2006 , s. 19, Act No. 19 of 2015 , s. 65.]
169
LEGAL PROCEEDINGS AND APPEALS - 169. TheTribunal
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The Cabinet Secretary may establish a Tribunal by Gazette notice; the Tribunal composition, quorum, allowances, liability protection, and procedural details for appeals are specified or delegated to the Cabinet Secretary and the Tribunal.

Section 169. TheTribunal Section 169(1) The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the National Treasury;") may, by notice in the Gazette , establish a Tribunal ("the tribunal established under;") for the purpose of hearing appeals under this Act. Section 169(2) The Tribunal ("the tribunal established under;") shall consist of a chairperson and vice-chairperson and not less than two and not more than four other members who shall be appointed by the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the National Treasury;") and shall hold office for such period and upon such terms and conditions as the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the National Treasury;") may determine. Section 169(3) The quorum for a meeting of the Tribunal ("the tribunal established under;") shall be the chairperson or vice-chairperson and two other members. Section 169(4) The members of the Tribunal ("the tribunal established under;") shall be entitled to receive such allowances as the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the National Treasury;") may determine. Section 169(5) The members of the Tribunal ("the tribunal established under;") shall not be personally liable for any act or default of the Tribunal ("the tribunal established under;") done or committed in good faith in the course of exercising the powers conferred by this Act. Section 169(6)(a) prescribing the manner in which an appeal shall be made to the Tribunal ("the tribunal established under;") and the fees to be paid in respect of an appeal; Section 169(6)(b) prescribing the procedure to be adopted by the Tribunal ("the tribunal established under;") in hearing an appeal and the records to be kept by the Tribunal ("the tribunal established under;") ; Section 169(6)(c) prescribing the manner in which the Tribunal ("the tribunal established under;") shall be convened and the places where and the time at which sittings shall be held; Section 169(6)(d) prescribing a scale of costs which may be awarded by the Tribunal ("the tribunal established under;") ; and Section 169(6)(e) generally for the better carrying out of the provisions of this Act relating to the Tribunal ("the tribunal established under;") and appeals thereto.
170
LEGAL PROCEEDINGS AND APPEALS - 170. Powers ofTribunal
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Section 170 grants the Tribunal the powers of a Resident Magistrate's Court (summon witnesses, take evidence on oath, call for production), allows it to receive affidavit evidence and administer interrogatories, permits considering otherwise inadmissible evidence, authorises awarding and taxing costs, deems documents signed by the chairperson as issued by the Tribunal, and permits representation by advocates or persons the Tribunal admits.

Section 170. Powers ofTribunal Section 170(1) On the hearing of an appeal the Tribunal ("the tribunal established under;") shall have all the powers of a Resident Magistrate's Court of the first class to summon witnesses, to take evidence upon oath or affirmation and to call for the production of books and other documents. Section 170(2) Where the Tribunal ("the tribunal established under;") considers it desirable for the purpose of avoiding expense or delay or any other special reason so to do, it may receive evidence by affidavit and administer interrogatories and require the person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") to whom interrogatories are administered to make a full and true reply to the interrogatories within the time specified by the Tribunal ("the tribunal established under;") . Section 170(3) In its determination of any matter the Tribunal ("the tribunal established under;") may take into consideration any evidence which it considers relevant to the subject of an appeal before it, notwithstanding that such evidence would not otherwise be admissible under the law relating to evidence. Section 170(4) The Tribunal ("the tribunal established under;") shall have power to award the costs of any proceedings before it and to direct that costs shall be taxed in accordance with any scale prescribed. Section 170(5) All summonses, notices or other documents issued under the hand of the chairperson of the Tribunal ("the tribunal established under;") shall be deemed to be issued by the Tribunal ("the tribunal established under;") . Section 170(6) Any interested party may be represented before the Tribunal ("the tribunal established under;") by an advocate or by any other person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") whom the Tribunal ("the tribunal established under;") may admit to be heard on behalf of the party. [Act No. 1 of 2014 , s. 16.]
171
LEGAL PROCEEDINGS AND APPEALS - 171. Enforcement of orders for costs
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The Tribunal must issue a certificate stating the amount of costs to the person awarded costs on that person's application; that certificate may be filed in the High Court and, when filed, is deemed a decree and may be executed as such; orders for costs against the Government are enforceable only as provided by the Government Proceedings Act.

Section 171. Enforcement of orders for costs Section 171(1) Where the Tribunal ("the tribunal established under;") awards costs in any appeal, the Tribunal ("the tribunal established under;") shall, on application by the person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") to whom the costs are awarded, issue to him a certificate stating the amount of the costs. Section 171(2) Every certificate issued under subsection (1) may be filed in the court ("the High Court;") by the person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") in whose favour the costs have been awarded and, upon being so filed, shall be deemed to be decree of the court ("the High Court;") and may be executed as such; but an order for costs against the Government shall not be enforced except in the manner provided for by the Government Proceedings Act ( Cap. 40 ).
172
LEGAL PROCEEDINGS AND APPEALS - 172. Penalty for disobedience of summons to give evidence etc
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Penalty for disobeying a summons to give evidence when a person refuses or fails to attend at the time and place mentioned in the summons served on him.

Section 172. Penalty for disobedience of summons to give evidence etc Section refuses or fails to attend at the time and place mentioned in the summons served on him;
173
LEGAL PROCEEDINGS AND APPEALS - 173. Appeals fromCommissioner’s decisions
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Persons aggrieved by the Commissioner’s decisions may appeal to the Tribunal within one month; the Tribunal can uphold, reverse, revoke or vary decisions; Tribunal decisions are final except where a question of law is involved, in which case an appeal to the High Court may be filed within one month; the Chief Justice may make rules for appeals to the High Court.

Section 173. Appeals fromCommissioner’s decisions Section 173(1) A person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") aggrieved by a decision of the Commissioner ("the officer appointed under;") under this Act may, within one month from the date on which the decision is intimated to him, appeal to the Tribunal ("the tribunal established under;") which may, subject to such terms and conditions as it may consider necessary, uphold, reverse, revoke or vary that decision. Section 173(2) Except as provided in this section the decision of the Tribunal ("the tribunal established under;") on an appeal made to it under subsection (1) shall be final and conclusive. Section 173(3) A person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") aggrieved by a decision of the Tribunal ("the tribunal established under;") made under subsection (1) may, if it involves a question of law, within one month from the date on which the decision is intimated to him, appeal therefrom to the court ("the High Court;") . Section 173(4) A reference in this section to a question of law does not include a reference to a question whether there is sufficient evidence to justify a finding. Section 173(5) The Chief Justice may make rules for regulating the practice and procedure in connection with an appeal under subsection (3) and for the better carrying into effect the provisions of that subsection.
174
LEGAL PROCEEDINGS AND APPEALS - 174. Cognisance of offences and restrictions on institution of proceedings
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Certain inferior courts must not hear offences under this Act; prosecution proceedings require the written sanction of the Director of Public Prosecutions; proceedings may be taken against corporations or persons where they have a place of business or residence.

Section 174. Cognisance of offences and restrictions on institution of proceedings Section 174(1) No court ("the High Court;") inferior to that of a magistrate’s court ("the High Court;") of the first class shall hear and determine any matter relating to an offence under this Act. Section 174(2) No proceedings for an offence under this Act shall be instituted without the written sanction thereto of the Director of Public Prosecutions. Section 174(3) Proceedings for an offence under this Act may (without prejudice to any jurisdiction apart from this subsection) be taken against a body corporate at any place at which the body corporate has a place of business, and against any other person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") at any place at which he has a place of business or is for the time being resident. [Act No. 1 of 2014 , s. 17.]
175
LEGAL PROCEEDINGS AND APPEALS - 175. Criminal liability of directors, etc
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Directors and similar officers can be held criminally liable for offences by a body corporate unless they prove lack of knowledge or that they took all reasonable steps to prevent the offence; conviction may lead to a fine up to one hundred thousand shillings, imprisonment up to five years for a natural person, or both, and can trigger cancellation of a body corporate's registration and appointment of a manager.

Section 175. Criminal liability of directors, etc Section 175(1) Where an offence under this Act committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director ("a person occupying the position of a director by whatever name he may be called;") , chief executive, principal officer ("an officer appointed under;") , manager, secretary or other similar officer of the body corporate or any person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") who was purporting to act in such capacity, he, as well as the body corporate, shall be guilty of that offence unless he proves that he did not know of the commission of the offence and was not reasonably in a position to know of it, or that he took all reasonable steps to prevent the commission of the offence. Section 175(2) A person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") convicted of an offence under subsection (1) shall be liable to a fine not exceeding one hundred thousand shillings or, in the case of a natural person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") , to imprisonment for a term not exceeding five years, or to both. Section 175(3) Where a person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") convicted under this section is a body corporate, then, notwithstanding any other penalty imposed under subsection (2), the conviction shall constitute sufficient grounds for cancellation of its registration and the appointment of a manager under section 67C . [Act No. 12 of 1994 , s. 33.]
176
LEGAL PROCEEDINGS AND APPEALS - 176. Criminal proceedings against unincorporated bodies
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Proceedings for offences by an unincorporated body are to be brought in the name of that body; court rules treat the body as if it were a corporation for service; fines on conviction must be paid from that body's funds.

Section 176. Criminal proceedings against unincorporated bodies Section 176(1) Proceedings for an offence alleged to have been committed under this Act by an unincorporated body shall be brought in the name of that body (and not in that of any of its members) and, for the purposes of any such proceedings, any rules of court ("the High Court;") relating to the service of documents shall have effect as if that body were a corporation. Section 176(2) A fine imposed on an unincorporated body on its conviction of an offence under this Act shall be paid out of the funds of that body.
177
LEGAL PROCEEDINGS AND APPEALS - 177. Documents to be received in evidence
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Certified documents deposited under the Act (or certified copies) are treated as the original and may be received in evidence unless a variation is proved; the Board may direct deposited documents or certified copies to be open for inspection, and any person may obtain copies on payment of prescribed fees.

Section 177. Documents to be received in evidence Section 177(1) Every document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") purporting to be certified ("certified by a principal officer to be true and correct, a true copy or a correct translation (as the case may be) by endorsement on or attached to the document to be certified;") by the Commissioner ("the officer appointed under;") to be a document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") deposited with him under the provisions of this Act, and every document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") purporting to be similarly certified ("certified by a principal officer to be true and correct, a true copy or a correct translation (as the case may be) by endorsement on or attached to the document to be certified;") to be a copy of that document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") , shall be deemed to be such a document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") or copy, as the case may be, and shall be received in evidence as if it were the original document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") unless some variation between it and the original document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") is proved. Section 177(2) The Board ("the Board of Directors of the Authority constituted under;") may direct any documents deposited with the Commissioner ("the officer appointed under;") under this Act, or certified ("certified by a principal officer to be true and correct, a true copy or a correct translation (as the case may be) by endorsement on or attached to the document to be certified;") copies thereof, to be kept open for inspection, and copies thereof may be procured by any person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") on payment of such fees as may be prescribed. Section 177(3) Every document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") purporting to be certified ("certified by a principal officer to be true and correct, a true copy or a correct translation (as the case may be) by endorsement on or attached to the document to be certified;") by the Registrar of Companies to be a copy of a document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") deposited with him under this Act, shall be deemed to be a copy of that document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") , and shall be received in evidence as if it were the original document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") , unless some variation between it and the original is proved. [Act No. 11 of 2006 , s. 20.]
178
LEGAL PROCEEDINGS AND APPEALS - 178. General penalty
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Persons who contravene any provision of this Act or any regulation made under it for which no specific penalty is provided are guilty of an offence and liable to a fine not exceeding one hundred thousand shillings.

Section 178. General penalty Section A person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") who contravenes any provision of this Act or any regulation made thereunder for which no specific penalty is imposed shall be guilty of an offence and liable to a fine not exceeding one hundred thousand shillings. [Act No. 12 of 1994 , s. 34.]

Part XX

GENERAL PROVISIONS RELATING TO LICENSING AND LICENCES

182
GENERAL PROVISIONS RELATING TO LICENSING AND LICENCES - 182. Interpretation of this Part
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Defines key terms for this Part: "applicant", "licensed person" and "register".

Section 182. Interpretation of this Part Section In this Part— "applicant" means a person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") applying for license, renewal of license or alteration of license under this Act; “licensed person” means a person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") licensed under this Act as an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") , reinsurer ("a person who carries on reinsurance business and includes a retrocessionaire;") , broker ("an intermediary involved with the placing of insurance business with an insurer or reinsurer for or in expectation of payment by way of brokerage commission for or on behalf of an insurer, policyholder or proposer for insurance or reinsurance and includes a medical insurance provider;") , agent ("a person, not being a salaried employee of an insurer who, in consideration of a commission, solicits or procures insurance business for an insurer or broker;") , insurance surveyor, risk manager ("a person, his clients or employer with regard to a programme of minimizing losses arising through unforeseen events, and of minimizing the cost of such protection by physical or financial measures through insurance or any other means;") , loss assessor, loss adjuster or claims settling agent ("a person who engages in the business of settling or negotiating insurance claims under policies issued by insurers whether in Kenya or outside Kenya;") ; "register" means a register required to be kept and maintained under section 183 ; [Act No. 10 of 2023 , Sch.]
183
GENERAL PROVISIONS RELATING TO LICENSING AND LICENCES - 183. Registers of licenced persons to be kept byCommissioner
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The Commissioner must cause one or more registers of persons required to be registered under the Act to be kept and maintained.

Section 183. Registers of licenced persons to be kept byCommissioner Section 183(1) For the purposes of this Act, the Commissioner ("the officer appointed under;") shall cause to be kept and maintained one or more registers in respect of persons required to be registered thereunder. Section 183(2) Subject to this Act and to any regulations made thereunder, a register ("a register required to be kept and maintained under;") shall be kept and maintained in such form and manner as the Commissioner ("the officer appointed under;") directs. [Act No. 10 of 2023 , Sch.]
184
GENERAL PROVISIONS RELATING TO LICENSING AND LICENCES - 184. Notification of licensed persons
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The Commissioner must publish in the Gazette the names of licensed persons and the type of business they are licensed for, within one year of the appointed date (or as soon as practicable) and thereafter at intervals of not more than one year.

Section 184. Notification of licensed persons Section The Commissioner ("the officer appointed under;") shall notify in the Gazette , within one year of the appointed date ("the date specified infor the coming into force of this Act;") or soon as practicable thereafter, and at intervals of not more than one year thereafter, the names of licensed persons and the type of business in respect of which they are licensed. [Act No. 10 of 2023 , Sch.]
185
GENERAL PROVISIONS RELATING TO LICENSING AND LICENCES - 185. Inspection of registers
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Section 185. Inspection of registers Section Any person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and

Section 185. Inspection of registers Section Any person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") may, on application in accordance with the directions of the Commissioner ("the officer appointed under;") and on payment of the prescribed fee (if any), inspect a register ("a register required to be kept and maintained under;") .
186
GENERAL PROVISIONS RELATING TO LICENSING AND LICENCES - 186. Evidence of matters inregister
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All courts must accept a certificate signed by the Commissioner as evidence of matters relating to the contents of a register.

Section 186. Evidence of matters inregister Section A certificate under the hand of the Commissioner ("the officer appointed under;") certifying as to any matter relating to the contents of a register ("a register required to be kept and maintained under;") shall be received in all courts as evidence of the matter certified ("certified by a principal officer to be true and correct, a true copy or a correct translation (as the case may be) by endorsement on or attached to the document to be certified;") .
187
GENERAL PROVISIONS RELATING TO LICENSING AND LICENCES - 187. Alteration of license
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Section 187 mentions alteration of license and states that a person "ceases to carry on business of the type in respect of which he is licensed".

Section 187. Alteration of license Section in accordance with this Act ceases to carry on business of the type in respect of which he is licensed; or
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GENERAL PROVISIONS RELATING TO LICENSING AND LICENCES - 188. Expiry and renewal of license
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Licences issued under the Act expire on 31 December of the year of licensing; renewal applications must be made by 30 September of the preceding year; the Commission may extend the renewal application deadline on payment of a penalty not exceeding the prescribed licensing fee; the section does not apply to licensed persons who are insurers.

Section 188. Expiry and renewal of license Section 188(1) Subject to this Act, a license issued under this Act shall expire on the 31st of December of the year of licensing : Provided that where an application for its renewal is made under this section, the license shall be deemed to continue in force until the application for the renewal is determined. Section 188(2) Subject to subsection (3), an application for the renewal of license for a year shall be made on or before the 30th September of the preceding year in the prescribed form and shall be accompanied by the prescribed fee. Section 188(3) The Commission may extend the time for making an application for renewal of a license on payment of such a penalty, not exceeding the prescribed fee for licensing , as he may require. Section 188(4) This section shall not apply to a licensed person who is an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") . [Act No. 9 of 2007 , s. 62, Act No. 8 of 2009 , s. 49, Act No. 22 of 2017 , s. 19, Act No. 10 of 2023 , Sch.]
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GENERAL PROVISIONS RELATING TO LICENSING AND LICENCES - 189. Issue, display and surrender of licences
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Licensed persons must prominently display their licence at their principal place of business in Kenya and at each branch; they must return the licence on cancellation and must not display it after cancellation or expiry. The Commissioner must issue licences on issuance or renewal and may issue duplicate licences on payment of the prescribed fee. Contravening return or display rules is an offence punishable by a fine not exceeding one thousand shillings.

Section 189. Issue, display and surrender of licences Section 189(1) Upon issuance of a licence or its renewal, the Commissioner ("the officer appointed under;") shall issue a licence which shall be prominently displayed by the licensed person at his principal place of business in Kenya in a part thereof to which the public have access, and a copy thereof shall be similarly displayed at each of the branches of the licensed person in Kenya. Section 189(2) The Commissioner ("the officer appointed under;") may, on payment of the prescribed fee, issue a duplicate license to replace a certificate which has been lost, destroyed or damaged or in any case where he considers it necessary. Section 189(3) Upon the cancellation of a license, the licensed person shall forthwith return his license to the Commissioner ("the officer appointed under;") . Section 189(4) A licensed person shall not display a licence after the cancellation or expiry of the licence. Section 189(5) A person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") who contravenes the provisions of subsection (3) or (4) shall be guilty of an offence and liable to a fine not exceeding one thousand shillings. [Act No. 10 of 2023 , Sch.]
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GENERAL PROVISIONS RELATING TO LICENSING AND LICENCES - 190. Name oflicensed person
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Rules about use of names by licensed persons and related offences and penalties, including direction to change a name if it duplicates or closely resembles another licensed person's name, prohibitions on misleading use of 'insurance' or 'assurance' by certain insurance-related persons after six months from the appointed date, and an offence with a fine up to five thousand shillings plus daily fines for continuing contraventions.

Section 190. Name oflicensed person Section 190(1) (1) If the name of a licensed person is identical to a name by which another licensed person has already been licensed, or so nearly resembles it as to be likely to deceive, the second licensed person shall, if directed in writing to do so by the Commissioner ("the officer appointed under;") and subject to the Companies Act Cap. 486 ), change his name within a time to be specified in the direction. Section 190(2) No insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") shall, after the expiry of six months from the appointed date ("the date specified infor the coming into force of this Act;") , use, or carry on business under, a name which is likely to mislead the public or to give the impression that the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") is carrying on any business other than insurance business . Section 190(3) No broker ("an intermediary involved with the placing of insurance business with an insurer or reinsurer for or in expectation of payment by way of brokerage commission for or on behalf of an insurer, policyholder or proposer for insurance or reinsurance and includes a medical insurance provider;") , agent ("a person, not being a salaried employee of an insurer who, in consideration of a commission, solicits or procures insurance business for an insurer or broker;") , insurance surveyor, loss assessor, loss adjuster , risk manager ("a person, his clients or employer with regard to a programme of minimizing losses arising through unforeseen events, and of minimizing the cost of such protection by physical or financial measures through insurance or any other means;") or claims settling agent ("a person who engages in the business of settling or negotiating insurance claims under policies issued by insurers whether in Kenya or outside Kenya;") shall, after the expiry of six months from the appointed date ("the date specified infor the coming into force of this Act;") , use, or carry on business under, a name which includes the word "insurance" or "assurance" in such a way as to mislead the public or to give the impression that he carries on insurance business . Section 190(4) A person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") who contravenes the provisions of subsection (2) or (3) shall be guilty of an offence and liable to a fine not exceeding five thousand shillings, and where the offence is a continuing one, to a further fine of one hundred shillings for every day during which the offence continues. [Act No. 19 of 2015 , s. 71, Act No. 10 of 2023 , Sch.]
191
GENERAL PROVISIONS RELATING TO LICENSING AND LICENCES - 191. Prohibition of other business
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Persons seeking licensing as insurer, reinsurer or broker must not be licensed if they carry on or intend to carry on in Kenya any business other than that for which they apply; persons already licensed must not carry on other business in Kenya; contravention is an offence with a fine not exceeding five thousand shillings; subsidiary ownership is not automatically treated as carrying on other business, with a proviso restricting long term insurance subsidiaries.

Section 191. Prohibition of other business Section 191(1) No person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") shall be licensed under this Act as an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") , reinsurer ("a person who carries on reinsurance business and includes a retrocessionaire;") or broker ("an intermediary involved with the placing of insurance business with an insurer or reinsurer for or in expectation of payment by way of brokerage commission for or on behalf of an insurer, policyholder or proposer for insurance or reinsurance and includes a medical insurance provider;") if he carries on or intends to carries on or intends to carry on in Kenya any business other than the business in respect of which he applies for licensing . Section 191(2) No person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") licensed under this Act as an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") , reinsurer ("a person who carries on reinsurance business and includes a retrocessionaire;") or broker ("an intermediary involved with the placing of insurance business with an insurer or reinsurer for or in expectation of payment by way of brokerage commission for or on behalf of an insurer, policyholder or proposer for insurance or reinsurance and includes a medical insurance provider;") shall carry on in Kenya any business other than the business in respect of which he is licensed. Section 191(3) For the purposes of this section, an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") shall not be deemed to be carrying on a business other than that in respect of which he is licensed merely by reason of his having a subsidiary ("a subsidiary company as defined by section 4 of the Companies Act ();") which is licensed for a class of insurance business for which the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") is not licensed: Provided that nothing in this subsection shall allow an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") not licensed for long term insurance business to own a subsidiary ("a subsidiary company as defined by section 4 of the Companies Act ();") licensed for any class of long term insurance business . Section 191(4) A person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") who contravenes the provisions of this section shall be guilty of an offence and liable to a fine not exceeding five thousand shillings. [Act No. 10 of 2023 , Sch.]
192
GENERAL PROVISIONS RELATING TO LICENSING AND LICENCES - 192. Further information
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The Commissioner may require an applicant to furnish written information, and the Commissioner must not proceed with an application until that information is furnished.

Section 192. Further information Section The Commissioner ("the officer appointed under;") may in writing require an applicant ("a person applying for license, renewal of license or alteration of license under this Act;") for license or renewal of a licence under this Act to furnish him with such written information as he may require relating to the applicant ("a person applying for license, renewal of license or alteration of license under this Act;") or his business in respect of which registration or renewal thereof is sought, and the Commissioner ("the officer appointed under;") shall not proceed with an application until that information has been furnished. [Act No. 10 of 2023 , Sch.]
193
GENERAL PROVISIONS RELATING TO LICENSING AND LICENCES - 193. Alteration in particulars furnished
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Applicants or licensed persons must notify the Commissioner in writing of any circumstances affecting submitted documents, within seven days; failure is an offence punishable by a fine not exceeding five thousand shillings.

Section 193. Alteration in particulars furnished Section 193(1) Whenever any circumstances arise which affect the application or the contents of a document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") furnished under this Act to the Commissioner ("the officer appointed under;") with or in support of or in connection with an application for licensing , the applicant ("a person applying for license, renewal of license or alteration of license under this Act;") or licensed person , as the case may be, shall in writing, within seven days of those circumstances arising, furnish full details of the circumstances to the Commissioner ("the officer appointed under;") . Section 193(2) A person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") who contravenes the provisions of subsection (1) shall be guilty of an offence and liable to a fine not exceeding five thousand shillings. [Act No. 10 of 2023 , Sch.]
194
GENERAL PROVISIONS RELATING TO LICENSING AND LICENCES - 194. False or misleading statements
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Persons who make false or misleading statements in licence applications or related documents commit an offence and may be fined up to five thousand shillings.

Section 194. False or misleading statements Section A person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") who makes a false or misleading statement in an application for a licence or renewal of license or alteration of licence, or in any document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") furnished under this Act to the Commissioner ("the officer appointed under;") with or in support of or in connection with an application for a licence or renewal of a licence, commits an offence and is liable to a fine not exceeding five thousand shillings. [Act No. 10 of 2023 , Sch.]
195
GENERAL PROVISIONS RELATING TO LICENSING AND LICENCES - 195. 195. Refusal to license
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When the Board refuses to grant, renew or alter a licence, the Board must record its reasons and furnish copies of those reasons to the applicant and to the Minister.

Section 195. 195. Refusal to license Section Where the Board ("the Board of Directors of the Authority constituted under;") refuses to license an application or renewal or alteration of a license, the Board ("the Board of Directors of the Authority constituted under;") shall record the reasons for its decision and shall furnish copies thereof to the applicant ("a person applying for license, renewal of license or alteration of license under this Act;") and the Minister. [Act No. 12 of 1987 , s. 8, Act No. 11 of 2006 , s. 23, Act No. 10 of 2023 , Sch.]
196
GENERAL PROVISIONS RELATING TO LICENSING AND LICENCES - 196. Cancellation of license
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The Commissioner may cancel a licence (in whole or for part) on several grounds and subject to terms; cancelled licences generally take effect after 30 days, insurers with cancelled licences may not enter new insurance contracts after that time, the Commissioner may revive licences with Cabinet Secretary approval within six months, and after six months may apply for liquidation.

Section 196. Cancellation of license Section 196(1) (1) Where a licensed person requests, by notice in writing given to the Commissioner ("the officer appointed under;") , that his license be cancelled either totally or in respect of any particular part of his business, the Commissioner ("the officer appointed under;") may, subject to such terms and conditions as he considers necessary, by notice in writing, cancel the license of the person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") , either totally or respect of any particular part of his business. Section 196(2)(a) if the person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") fails to comply with or acts in contravention of this Act, or any regulation or direction made or issued under this Act; Section 196(2)(b) in the case of an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") , if the Commissioner ("the officer appointed under;") has reason to believe that an amount due by the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") under a judgment entered in an action in Kenya arising out of a policy of insurance issued by the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") has remained unpaid for three months after the date of the final adjudication in that action; Section 196(2)(c) if the Commissioner ("the officer appointed under;") is satisfied that the business of the person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") licenced is not being conducted in accordance with sound insurance or business principles; Section 196(2)(d) where, having regard to the financial circumstances of the person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") licenced, the Commissioner ("the officer appointed under;") is satisfied that the person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") cannot carry on the business, or a part of the business, for which he is licenced, as the case may be, in a satisfactory and efficient manner; Section 196(2)(e) where, having regard to the nature and quality of the staff of the licenced person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") , including the professional qualifications, knowledge and experience of the staff, the Commissioner ("the officer appointed under;") is satisfied that the person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") cannot carry on the business, or a part of the business, for which he is licenced, as the case may be, in a satisfactory and efficient manner; Section 196(2)(f) if the person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") is in liquidation; Section 196(2)(g) if the business of the licenced person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") has been transferred to or amalgamated with the business of another person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") without the approval of the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the National Treasury;") ; Section 196(2)(h) in the case of an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") , if the business of the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") is wholly or to an unreasonable extent re-insured with another person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") ; Section 196(2)(i) where the Commissioner ("the officer appointed under;") has reason to believe that the person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") licenced has not commenced to carry on insurance business or any class of business in Kenya within the period of twelve months after he was licenced; Section 196(2)(j) where the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the National Treasury;") considers it is otherwise in the public interest and so directs the Commissioner ("the officer appointed under;") in writing. Section 196(3) A cancellation of licence made by the Commissioner ("the officer appointed under;") under subsection (2), other than paragraph (f), (g) or (i) thereof, shall take effect thirty days after the date of the notice, and after that time no insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") whose licence has been cancelled shall enter into a new contract of insurance ("a contract of reinsurance;") ; but all rights and liabilities in respect of contracts of insurance entered into by him before the cancellation takes effect shall, subject to subsection (5), continue as if the cancellation had not taken place. Section 196(4) The Commissioner ("the officer appointed under;") may, with the prior approval of the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the National Treasury;") , revive a licence which has been cancelled under the provisions of subsection (2), other than paragraph (f), (g) or (i) thereof, if within six months from the date on which cancellation took place the registered person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") concerned satisfies the Commissioner ("the officer appointed under;") that he has complied with any requirement of this Act or any subsidiary ("a subsidiary company as defined by section 4 of the Companies Act ();") legislation made thereunder and complies with any further directions given to him by the Commissioner ("the officer appointed under;") . Section 196(5) After the expiry of six months from the date on which the cancellation of licence of an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") has taken effect under this section, the Commissioner ("the officer appointed under;") may, with the prior approval of the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the National Treasury;") , apply to the court ("the High Court;") for a liquidation order in respect of the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") . Section 196(5A)(a) the licence of the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") has been revived under subsection (4); or Section 196(5A)(b) an application for a liquidation order has already been made to the court ("the High Court;") in respect of the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") . Section 196(6) (6) Where in any case referred to in subsection (1) the default or circumstances relates to one or more, but not all, of the parts of business carried on by the licensed person , the Commissioner ("the officer appointed under;") may, with the prior approval of the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the National Treasury;") , upon the cancellation of the license of the person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") , subject to such terms and conditions as he considers necessary, license the person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") in respect of any part of the business and issue a new license in respect of that class of business. [Act No. 12 of 1987 , s. 9, Act No. 11 of 2006 , s. 24, Act No. 19 of 2015 , s. 72, Act No. 10 of 2023 , Sch.]
196A
GENERAL PROVISIONS RELATING TO LICENSING AND LICENCES - 196A. Notification of cancellation of licence
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The Commissioner must each year publish in the Gazette and at least two national daily newspapers the names of persons whose licence is cancelled and the type of business; the Insurance Regulatory Authority must keep beneficial ownership records of such persons for at least five years after cancellation.

Section 196A. Notification of cancellation of licence Section 196A(1) The Commissioner ("the officer appointed under;") shall, at the beginning of each calendar year, notify in the Gazette and in at least two daily newspapers of national circulation, names of persons whose licence is cancelled under this Act and the type of business in respect of which the cancellation of licence is done. Section 196A(2) The Authority ("the Insurance Regulatory Authority established by;") shall maintain information and records on the beneficial ownership of the persons whose license is cancelled for at least five years after the date on which the license is cancelled. [Act No. 9 of 2003 , s. 17, Act No. 10 of 2023 , Sch.]
196B
GENERAL PROVISIONS RELATING TO LICENSING AND LICENCES - 196B. Powers on anti-money laundering, combating the financing of terrorism and countering proliferation financing matters
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The Insurance Regulatory Authority shall regulate, supervise and enforce anti‑money laundering, counter‑terrorist financing and counter‑proliferation financing obligations for reporting institutions and has powers including vetting officers, inspections, requiring documents, imposing sanctions, issuing guidance, sharing information and taking necessary supervisory action.

Section 196B. Powers on anti-money laundering, combating the financing of terrorism and countering proliferation financing matters Section 196B(1) Pursuant to sections 2A, 36A, 36B and 36C of the Proceeds of Crime and Anti-Money Laundering Act, 2009, the Authority ("the Insurance Regulatory Authority established by;") shall regulate, supervise and enforce compliance for anti-money laundering combating the financing of terrorism countering proliferation financing purposes by all reporting institutions regulated and supervised by Authority ("the Insurance Regulatory Authority established by;") and to whom the provisions of the Proceeds of Crime and Anti-Money Laundering Act, 2009 apply. Section 196B(2)(a) vet proposed significant shareholders, proposed beneficial owners, proposed directors and senior officers of a reporting institution; Section 196B(2)(b) conduct onsite inspection; Section 196B(2)(c) conduct offsite surveillance; Section 196B(2)(d) undertake consolidated supervision of a reporting institution and its group; Section 196B(2)(e) compel the production of any document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") information the Authority ("the Insurance Regulatory Authority established by;") may require for the purpose of discharging its supervisory mandate under the Proceeds of Crime and Anti-Money Laundering Act, 2009; Section 196B(2)(f) impose monetary, civil or administrative sanctions for violations related to anti-money laundering, combating the financing of terrorism and countering proliferation financing purposes; or Section 196B(2)(g) issue guidelines, directions, rules or instructions for anti-money laundering, regulations , combating the financing of terrorism and countering proliferation financing purposes; Section 196B(2)(h) co-operate and share information for anti-money laundering, combating the financing of terrorism and countering proliferation financing purposes; and Section 196B(2)(i) take such action as is necessary to supervise and enforce compliance by reporting institutions in line with the provisions of the Proceeds of Crime and Anti-Money Laundering Act, 2009 and any regulations , guidelines, rules, instruction or direction made or issued thereunder. Section 196B(3) For purposes of this section, “reporting institution" has the meaning assigned to it under section 2 of the Proceeds of Crime and Anti-Money Laundering Act, 2009. [Act No. 10 of 2023 , Sch.]
196C
GENERAL PROVISIONS RELATING TO LICENSING AND LICENCES - 196C. Penalties for violations relating to money laundering, terrorism financing
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Penalties are prescribed for institutions and persons who violate or fail to comply with the Proceeds of Crime and Anti-Money Laundering Act, 2009 and instruments made under it.

Section 196C. Penalties for violations relating to money laundering, terrorism financing Section 196C(1) No institution, (1), directors, officer, employer, agent ("a person, not being a salaried employee of an insurer who, in consideration of a commission, solicits or procures insurance business for an insurer or broker;") or any other person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") shall violate or fail to comply with any provision of the Proceeds of Crime and Anti-Money Laundering Act, 2009, or any regulation, guideline, rule, direction or instruction issued under the said Act or under this section. Section 196C(2)(a) in case of a legal person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") , to a penalty not exceeding twenty million shillings; Section 196C(2)(b) in the case of a natural person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") , to a penalty not exceeding one million shillings; and Section 196C(2)(c) to additional penalties not exceeding one hundred thousand shillings in each case for each day or part thereof during which such violation or non-compliance continues.
196D
GENERAL PROVISIONS RELATING TO LICENSING AND LICENCES - 196D. Rights and fundamental freedoms
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All persons subject to the Act are entitled to enjoy the rights and fundamental freedoms in the Constitution, except where limited by Article 24, this Act, or another Act.

Section 196D. Rights and fundamental freedoms Section All persons subject to this Act shall enjoy all rights and fundamental freedoms enshrined in the Constitution unless limited to the extent specified in Article 24 of the Constitution, this Act or any other Act. [Act No. 10 of 2023 , Sch.]
196E
GENERAL PROVISIONS RELATING TO LICENSING AND LICENCES - 196E. Limitation of right to privacy
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Section limits the constitutional right to privacy to the specific measures listed in subsection (2).

Section 196E. Limitation of right to privacy Section 196E(1) The right to privacy guaranteed under Article 31 of the Constitution is hereby limited under Article 24 of the Constitution only to the nature and extent contemplated under subsection (2). Section 196E(2)(a) the person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") ’s home or property may, with a warrant, be searched; Section 196E(2)(b) the person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") ’s possessions may be seized; Section 196E(2)(c) information relating to that person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") ’s financial, family or private affairs where required may be revealed; or Section 196E(2)(d) the privacy of a person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") ’s communications may be investigated or otherwise interfered with. Section 196E(3) A limitation of a right under subsection (1) shall apply only for the purpose of the prevention, detection, investigation and prosecution of proceeds of crime, money laundering and financing of terrorism. [Act No. 10 of 2023 , Sch.]
197
GENERAL PROVISIONS RELATING TO LICENSING AND LICENCES - 197. Records to be maintained by licensed persons
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Licensed brokers, agents, insurers and other licensed persons must keep and maintain specified records (client/policy details, premiums, claim details and related particulars); insurers carrying on long-term business must also record assignees and nominees; all licensed persons must keep additional records as prescribed.

Section 197. Records to be maintained by licensed persons Section 197(1) A broker ("an intermediary involved with the placing of insurance business with an insurer or reinsurer for or in expectation of payment by way of brokerage commission for or on behalf of an insurer, policyholder or proposer for insurance or reinsurance and includes a medical insurance provider;") or agent ("a person, not being a salaried employee of an insurer who, in consideration of a commission, solicits or procures insurance business for an insurer or broker;") licensed under this Act shall keep and maintain at his principal place of business in Kenya a record of the name of every client, policy number, premium ("the consideration for the granting of an annuity;") paid, subject-matter of insurance, the date of the inception of the policy , date of renewal, sum insured and, in respect of claims settled by the broker ("an intermediary involved with the placing of insurance business with an insurer or reinsurer for or in expectation of payment by way of brokerage commission for or on behalf of an insurer, policyholder or proposer for insurance or reinsurance and includes a medical insurance provider;") on behalf of an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") , the amount and date of claim made, the date on which the claim was paid, the amount paid, and, in the event of a claim being repudiated, the date and reasons for repudiation, and, in the event of partial settlement, the reasons therefor. Section 197(2) An insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") licensed under this Act for carrying on general insurance business ("insurance business of any class or classes not being long term insurance business;") shall keep record of the name of every policy-holder , policy number, premium ("the consideration for the granting of an annuity;") paid, subject-matter of insurance, the date of the inception of the policy , date of renewal, sum insured, the amount and date of claim made, the date on which the claim was paid, the amount paid, and, in the event of a claim being repudiated, the date and reasons for repudiation, and, in the event of partial settlement, the reasons therefor. Section 197(3) An insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") licensed under this Act for carrying on long term insurance business shall keep and maintain the particulars referred to in subsection (2) and in addition a record of the name of any assignee or other person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") having an interest in a policy , and the name of every nominee and the dates of assignment or nomination, as the case may be. Section 197(4) A person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") licensed under this Act other than an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") , broker ("an intermediary involved with the placing of insurance business with an insurer or reinsurer for or in expectation of payment by way of brokerage commission for or on behalf of an insurer, policyholder or proposer for insurance or reinsurance and includes a medical insurance provider;") or agent ("a person, not being a salaried employee of an insurer who, in consideration of a commission, solicits or procures insurance business for an insurer or broker;") shall keep and maintain a full record of all services undertaken by him in pursuance of his licence. Section 197(5) Every person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") licensed under the Act shall also keep and maintain such further records of information as may be prescribed. [Act No. 10 of 2023 , Sch.]

Part XXA

THE INSURANCE PREMIUM LEVY

197A
THE INSURANCE PREMIUM LEVY - 197A. Imposition ofInsurance Premium Levy
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The section imposes an insurance premium levy payable by every insurer licensed to carry on insurance business in Kenya, computed as a percentage of gross direct premiums, with prescribed rates and procedures and specified penalties for late or non-submission of returns.

Section 197A. Imposition ofInsurance Premium Levy Section 197A(1) Subject to this Act, there shall be charged and collected a levy to be known as the insurance premium ("the consideration for the granting of an annuity;") levy, which shall be paid by every insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") licenced under this Act to carry on insurance business in Kenya, at such rate and in such manner as the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the National Treasury;") may prescribe. Section 197A(2)(a) gross direct premiums written by all insurers licensed under this Act to carry on insurance business in Kenya; and Section 197A(2)(b) deleted by ActNo. 1 of 2014, s. 20 , Section 197A(3) The levy shall be computed as a percentage of the gross direct premiums written by an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") or reinsurer ("a person who carries on reinsurance business and includes a retrocessionaire;") under subsection (2)(a). Section 197A(4) An order under this section may contain provisions as to the time at which any amount payable by way of the levy shall become due. Section 197A(5) All moneys received in respect of the levy shall be paid into the Insurance Regulatory Authority ("the Insurance Regulatory Authority established by;") Fund. Section 197A(6) If a person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") fails to pay any amount payable by him by way of the levy on or before the date prescribed by the order, a sum equal to five per cent of the amount shall be added to the amount due for each month or part thereof during which it remains unpaid. Section 197A(7) Any amounts of money which are outstanding on the date prescribed by the order issued under this section shall be a civil debt recoverable summarily by the Authority ("the Insurance Regulatory Authority established by;") . Section 197A(8) An insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") shall prepare and submit to the Authority ("the Insurance Regulatory Authority established by;") premium ("the consideration for the granting of an annuity;") levy returns as prescribed. Section 197A(9) Where an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") fails to submit returns as prescribed, the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") shall pay a penalty of two hundred thousand shillings and a further penalty of ten thousand shillings for every day after the expiry of the prescribed period during which the document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") remains un-submitted and the penalty shall be payable to the Policyholders' Compensation Fund. [Act No. 12 of 1987 , s. 10, Act No. 9 of 1992 , s. 59, Act No. 4 of 1993 , s. 63, Act No. 8 of 1997 , s. 57, Act No. 4 of 1999 , s. 75, Act No. 11 of 2006 , s. 25, Act No. 1 of 2014 , s. 20, Act No. 22 of 2017 , s. 20, Act No. 28 of 2019 , s. 8, Act No. 10 of 2023 , Sch.]

Part XXB

INSURANCE TRAINING LEVY

197B
INSURANCE TRAINING LEVY - 197B. Imposition ofInsurance Training Levy
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Imposes an insurance training levy charged on policy-holders and collected by insurers; insurers must submit monthly returns and pay the levy monthly; Cabinet Secretary may set levy rates; unpaid levies incur a 5% penalty; funds are used by the Insurance Training and Educational Trust for the College of Insurance.

Section 197B. Imposition ofInsurance Training Levy Section 197B(1) Subject to this Act, there is imposed a levy to be known as the insurance training levy which shall be charged on policy -holders and collected by the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") , and which shall be paid in accordance with this section. Section 197B(2) The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the National Treasury;") may, in consultation with the Board ("the Board of Directors of the Authority constituted under;") , by Order published in the Gazette , prescribe the rates of levy, which shall be calculated as a per centage of the gross direct premiums written by the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") in respect of general insurance business ("insurance business of any class or classes not being long term insurance business;") . Section 197B(3) The levy shall be paid by every insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") who shall, after the end of each calendar month, submit to the Authority ("the Insurance Regulatory Authority established by;") a monthly return thereof in the prescribed form, showing the total levy due to him from policy holders for that particular month. Section 197B(4) The levy shall become payable at the end of each month in which the premium ("the consideration for the granting of an annuity;") was received by the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") and shall be paid not later than the last day of the month immediately succeeding that in which the levy became due. Section 197B(5) Where any amount of the levy remains unpaid as specified in subsection (4), a penalty equal to five per cent of the unpaid levy or part thereof shall become due and payable by the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") concerned. Section 197B(6) Any penalty payable under this subsection shall be deemed to be a levy for the purpose of this Part. Section 197B(7) All monies realized under this section shall be charged on the gross direct premiums written by every insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") and shall be used by the Insurance Training and Educational Trust which is responsible for the management of the College of Insurance for the purpose of running the affairs of that College. [Act No. 20 of 1989 , Act No. 4 of 1993 , s. 63, Act No. 13 of 1995 , s. 94, Act No. 11 of 2006 , s. 26.]
197C
INSURANCE TRAINING LEVY - 197C. Offences and penalties
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Insurers who do not pay levies or penalties when due commit an offence and face fines up to 500,000 shillings, plus 1,000 shillings per day for continuing offences; the Commissioner may apply to wind up such an insurer.

Section 197C. Offences and penalties Section 197C(1) Any insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") who fails to pay any levy or penalty due from him on or before the day upon which the same are payable shall be guilty of an offence and liable to a fine not exceeding five hundred thousand shillings and, if the offence is a continuing one, to a further fine of one thousand shillings for every day during which the offence continues. Section 197C(2) Where an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") is guilty of an offence under this section, then notwithstanding the imposition of any penalty under section 197C , the commission of that offence shall constitute grounds whereby the Commissioner may apply to the Court under section 123 (g) for the winding up of that insurer. Section 197C(3) The amount of any levy or penalty payable under this Act shall not be abated by reason only of the conviction of the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") liable for the payment, or by reason of any payment of a fine imposed by the court ("the High Court;") on the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") for an offence under subsection (1).
197D
INSURANCE TRAINING LEVY - 197D. Examination and production of documents
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The Commissioner may require insurers to produce records and may require persons to attend for examination about levy liability.

Section 197D. Examination and production of documents Section 197D(1) The Commissioner ("the officer appointed under;") may, for the purpose of obtaining full information in respect of the levy liability of any insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") , require the production of such records, books of account, statements and other documents as he may consider necessary for examination and retention for such period as may be reasonable for the purpose. Section 197D(2) The Commissioner ("the officer appointed under;") may require any person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") to attend at such time and place as may be specified for the purpose of being examined in respect of any matter or transaction appearing to be relevant to the levy liability of any insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") . [Act No. 12 of 1987 , s. 10, Act No. 4 of 1993 , s. 63(d), Act No. 13 of 1995 , s. 94(b), Act No. 11 of 2006 , s. 26.]
197E
INSURANCE TRAINING LEVY - 197E. Regulations under Part XXA and Part XXB
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The Cabinet Secretary responsible for the National Treasury may make regulations prescribing matters required or permitted under Part XXA and Part XXB and any matters necessary, desirable or convenient to give full effect to this Part of the Act.

Section 197E. Regulations under Part XXA and Part XXB Section The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the National Treasury;") may make regulations , prescribing all matters which are required or permitted under Part XXA and Part XXB to be prescribed, or which in his opinion are necessary, desirable or convenient to be prescribed, for giving full effect to this Part of the Act.
197F
INSURANCE TRAINING LEVY - 197F.[Repealed by ActNo. 11 of 2006, s. 26.]
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Section 197F was repealed by ActNo. 11 of 2006, s. 26.

Section 197F.[Repealed by ActNo. 11 of 2006, s. 26.]
197G
INSURANCE TRAINING LEVY - 197G.[Repealed by ActNo. 11 of 2006, s. 26.]
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Section 197G was repealed by ActNo. 11 of 2006, s. 26.

Section 197G.[Repealed by ActNo. 11 of 2006, s. 26.]
197H
INSURANCE TRAINING LEVY - 197H.[Repealed by ActNo. 11 of 2006, s. 26.]
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Section 197H was repealed by ActNo. 11 of 2006, s. 26.

Section 197H.[Repealed by ActNo. 11 of 2006, s. 26.]
197I
INSURANCE TRAINING LEVY - 197I.[Repealed by ActNo. 11 of 2006, s. 26.]
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Section 197I was repealed by ActNo. 11 of 2006, s. 26.

Section 197I.[Repealed by ActNo. 11 of 2006, s. 26.]
197J
INSURANCE TRAINING LEVY - 197J.[Repealed by ActNo. 11 of 2006, s. 26.]
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Section 197J has been repealed.

Section 197J.[Repealed by ActNo. 11 of 2006, s. 26.]
197K
INSURANCE TRAINING LEVY - 197K.[Repealed by ActNo. 11 of 2006, s. 26.]
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Section 197K is repealed by Act No. 11 of 2006, s. 26.

Section 197K.[Repealed by ActNo. 11 of 2006, s. 26.]

Part XXI

SUPPLEMENTARY PROVISIONS

198
SUPPLEMENTARY PROVISIONS - 198. Service of notice onlicensed person
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A notice, direction or document issued under this Act may be served by delivery or by sending it by licensed post to the address given in the licence application as the principal place of business, or to a new address if the Commissioner has been notified of a change of address.

Section 198. Service of notice onlicensed person Section 198(1) A notice, direction or document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") issued under this Act may be served by delivering it or by sending it by licensed post to the address mentioned in an application for a licence under this Act as the principal place of business of that person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") or, if the Commissioner ("the officer appointed under;") has been notified of a change of address, to the new address. Section 198(2) A notice, direction or document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") served by post in accordance with the provisions of subsection (1) shall be deemed to have been served on the date on which it would have been delivered in the ordinary course of post. [Act No. 10 of 2023 , Sch.]
199
SUPPLEMENTARY PROVISIONS - 199. Service of notice onpolicy-holder
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If a person claiming an interest has notified the insurer in writing, the insurer must also send a copy of the document to the address given in that notice.

Section 199. Service of notice onpolicy-holder Section A document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") which is by this Act required to be sent to a policy-holder may be addressed and sent by post or email or other electronic mode to the person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") to whom notices in respect of the policy are usually sent, and a document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") so addressed and sent shall be deemed, unless the contrary is proved, to have been received by the policy-holder in the normal course of transit: Provided that where a person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") claiming an interest under a policy has given notice in writing thereof to the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") , a copy of any such document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") shall also be sent to that person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") at the address specified by him in his notice. [Act No. 11 of 2019 , s. 12.]
200
SUPPLEMENTARY PROVISIONS - 200. Conversion of currency
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If an amount or value relating to a person on a particular day is in a currency other than Kenya currency, it must be converted into Kenya currency at the telegraphic transfer buying rate of exchange of the person's principal banker at the close of business on that day (or, if no such rate exists that day, at the rate at the close of business on the last day there was such a rate).

Section 200. Conversion of currency Section Where this Act has effect with respect to an amount or value in relation to a person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") and in relation to a particular day and that amount or value is in a currency other than Kenya currency, the amount or value shall be converted into Kenya currency at the rate of exchange that is, at the close of business on that day, the telegraphic transfer buying rate of exchange of the principal banker of the person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") or, if there is no such rate on that day, at the telegraphic transfer buying rate of exchange of the banker at the close of business on the last day on which there was such a rate.
201
SUPPLEMENTARY PROVISIONS - 201. Consent ofCommissionerrequired for insurance
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Remittances or transfers of money or securities out of Kenya above amounts prescribed by the Central Bank of Kenya require the prior written approval of the Commissioner.

Section 201. Consent ofCommissionerrequired for insurance Section 201(1) Subject to this section and notwithstanding the provisions of any other written law or any agreement, on or after the appointed date ("the date specified infor the coming into force of this Act;") , no remittance or transfer of any sum of money or securities out of Kenya in excess of the amounts from time to time prescribed by the Central Bank of Kenya, in respect of or by way of premium ("the consideration for the granting of an annuity;") , reserve value, claim, management expense, profit surplus, investment income, or other payment or sum of money which directly or indirectly arises out of insurance business , shall be made without the prior written approval of the Commissioner ("the officer appointed under;") . Section 201(2) An application for the approval of the Commissioner ("the officer appointed under;") under this section shall be in the prescribed form and contain the prescribed particulars. Section 201(3) Approval granted by the Commissioner ("the officer appointed under;") under this section shall not exempt a bank or any person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") from compliance with any other law regulating the remittance or transfer of money or securities out of Kenya. [Act No. 12 of 1994 , s. 36.]
202
SUPPLEMENTARY PROVISIONS - 202. Printing of documents
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If a document is required by the Act to be printed, the Commissioner may allow it to be typewritten or reproduced by mechanical means he approves.

Section 202. Printing of documents Section Where a document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") is by this Act required to be printed, the Commissioner ("the officer appointed under;") may permit it to be typewritten, or to be reproduced by any mechanical means approved by him.
203
SUPPLEMENTARY PROVISIONS - 203. Settlement claims
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The section requires insurers to prepare and submit claims payment returns as prescribed by the Authority, imposes penalties for unpaid claim amounts (5%) and for failure to submit returns (KSh 200,000 plus KSh 10,000 per day), and deems insurers who fail to pay claims and penalties to be unable to pay debts under section 123 and liable to be wound up.

Section 203. Settlement claims Section 203(1)(a) admit or deny liability; Section 203(1)(b) determine the amount due; Section 203(1)(c) establish the identity of the claimant; and Section 203(1)(d) pay the claim, Section 203(1A) Subsection (1) shall not apply to the settlement of index-based insurance or micro-insurance claims. Section 203(2) Where an assessment of claim has been carried out, a copy of the assessment report ("any report in respect of a claim;") shall be made available to the claimant. Section 203(3) Where the amount of a claim which is due under subsection (1) remains unpaid on expiry of the period prescribed in that subsection, or any extension thereof under subsection (1), a penalty equal to five per cent of the unpaid amount shall forthwith become due and payable. Section 203(4) A penalty due under subsection (3) shall be recoverable as though it were a penalty interest charge payable to the Policy Holders’ Compensation Fund Board ("the Board of Directors of the Authority constituted under;") under section 179 , and shall be recovered by the Board in accordance with that section. Section 203(5) If an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") fails to pay the amount of a claim and any penalty thereon due in accordance with this section, the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") shall be deemed to be unable to pay his debts under section 123 and liable to be wound up in accordance with that section. Section 203(6) An insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") shall prepare claims payment returns and submit them in a manner prescribed by the Authority ("the Insurance Regulatory Authority established by;") . Section 203(7) Where an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") fails to submit returns as required under subsection (6), the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") shall pay a penalty of two hundred thousand shillings and a further penalty of ten thousand shillings for every day after the expiry of the prescribed period during which the returns remains un-submitted and the penalty shall be payable to the Policyholders' Compensation Fund. [Act No. 11 of 2006 , s. 27, Act No. 7 of 2007 , Sch., Act No. 8 of 2008 , s. 64, Act No. 8 of 2009 , s. 50, Act No. 11 of 2019 , s. 13, Act No. 28 of 2019 , s. 9.]
204
SUPPLEMENTARY PROVISIONS - 204. Appointment of public prosecutors
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The Director of Public Prosecutions may appoint public prosecutors for cases arising under this Act, pursuant to the Criminal Procedure Code (Cap. 75).

Section 204. Appointment of public prosecutors Section The Director of Public Prosecutions may, pursuant to the provisions of the Criminal Procedure Code ( Cap. 75 ), appoint public prosecutors for the purposes of cases arising under this Act. [Act No. 8 of 2008 , s. 65, Act No. 1 of 2014 , s. 21.]
204A
SUPPLEMENTARY PROVISIONS - 204A. Power of theAuthorityto settle disputes
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Insurance customers may lodge written complaints with the Commissioner; the Commissioner's determinations are binding on the parties, and dissatisfied parties may appeal to the Tribunal within thirty days.

Section 204A. Power of theAuthorityto settle disputes Section 204A(1) Any insurance customer may lodge a written complaint with the Commissioner ("the officer appointed under;") against a regulated entity in relation to the provision of its services. Section 204A(2) Subject to subsection (3), where the Commissioner ("the officer appointed under;") determines a dispute such determination shall be binding on the parties to the dispute. Section 204A(3) A party that is dissatisfied with the determination of the dispute by the Commissioner ("the officer appointed under;") may within thirty days appeal the determination to the Tribunal ("the tribunal established under;") . [Act No. 11 of 2019 , s. 14, Act No. 8 of 2020 , s. 32.]
204B
SUPPLEMENTARY PROVISIONS - 204B. Offences on Insurance Fraud
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Section 204B creates offences for knowingly making, presenting, assisting with, or conspiring in false or misleading applications, claims, records or statements in relation to insurance business, and for hindering investigations; conviction carries a fine of ten times the amount defrauded or up to five years imprisonment or both.

Section 204B. Offences on Insurance Fraud Section 204B(1)(a) presents, causes to be presented, prepares, assists, abets, solicits, or conspires with another or makes any oral or written statement with knowledge or belief that it will be presented to an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") in connection with, or in support of, any application for issuance of an insurance policy , containing false or misleading information concerning any fact material to the application for issuance of an insurance policy with intent of committing a fraud; Section 204B(1)(b) prepares, presents or causes to be presented to any insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") , any oral or written statement including computer generated documents as part of a claim for payment or other benefit pursuant to an insurance policy , containing false or misleading information concerning any fact material to such claims; Section 204B(1)(c) assists, abets, solicits or conspires with another to prepare or present any oral or written statement, including computer-generated documents, that is intended to be presented to any insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") in connection with, or in support of, any claim for payment or other benefit pursuant to an insurance policy , which contains false or misleading information concerning any fact material to the claim; or Section 204B(1)(d) makes, alters, introduces, signs, affixes any digital signature or transmits any record including computer-generated documents with an intention of fraudulently benefitting from an insurance contract or claim. Section 204B(2) A person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") licensed under this Act or any person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") who offers any service in relation to insurance business or any other professional is guilty of an offence of insurance fraud where that person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") knowingly and willfully assists, conspires with, or urges any person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") to violate any of the provisions of this Act or for any person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") who due to such assistance, conspiracy or urging by the said person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") , knowingly or willfully benefits from the proceeds derived from the use of fraud. Section 204B(3)(a) presents or causes to be presented to an insurance prospect, false or misleading information regarding the nature, extent and terms of insurance coverage which may or might be available to such prospect under any policy of insurance, whether first or third party; or Section 204B(3)(b) presents or causes to be presented in any insurance claim, false or misleading information regarding or affecting in any manner the extent of any claimant's right to benefit under, or to make a claim against, any policy of insurance. Section 204B(4) Any person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") who knowingly or willfully, hinders, prevents or obstructs investigations under this section shall be guilty of an offence. Section 204B(5) A person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") who is guilty of an offence under this section shall on conviction be liable to a fine of ten times the amount defrauded or intended to be defrauded or to imprisonment for a term not exceeding five years or both. Section 204B(6) Notwithstanding subsection (4), any person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") who is responsible for the loss of any moneys, property or assets shall be liable for recovery in a civil suit. [Act No. 11 of 2019 , s. 14, Act No. 10 of 2023 , Sch.]
205
SUPPLEMENTARY PROVISIONS - 205. Transitional and savings provision
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Section 205 provides transitional and savings effects: acts done or omitted by or to the Cabinet Secretary before the 2015 commencement are treated as having had effect immediately before that commencement; those acts may also be done or omitted by or to the Cabinet Secretary after that commencement; and persons registered under section 19 before commencement of the 2023 AML amendment are deemed to have been licensed under this Act.

Section 205. Transitional and savings provision Section 205(1)(a) any act or thing that was done or omitted to be done by or to the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the National Treasury;") under this Act before the commencement of the Companies and Insolvency Legislation (Consequential Amendments) Act, 2015 had effect immediately before that commencement; and Section 205(1)(b) that act or thing could be done or be omitted to be done by or to the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the National Treasury;") under this Act after that commencement, Section 205(2) Where a person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") was registered under section 19 prior to commencement of the Anti-Money Laundering and Combating of Terrorism Financing Law (Amendment) Act, 2023, that person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") shall be deemed to have been licensed under this Act. [Act No. 19 of 2015 , s. 73, Act No. 10 of 2023 , Sch.]

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