Insurance laws Sierra Leone
Sierra Leone's insurance sector is governed by the Insurance Act of 2016, which established the Sierra Leone Insurance Commission (SLICOM) as the primary regulatory authority. This legislation provides a comprehensive framework for the operation, supervision, and regulation of insurance businesses within the country.
š Key Legislation: Insurance Act of 2016
The Insurance Act of 2016 (Act No. 12 of 2016) serves as the cornerstone of Sierra Leone's insurance regulationī Key provisions include:
Registration Requirements:Entities must apply for registration with SLICOM, providing necessary documentation and meeting specified criteria
Capital and Deposit Requirements: insurance companies are mandated to maintain a minimum paid-up capital and statutory deposit, which varies based on the type of insurance businessīīFor instance, life insurance companies are required to have a minimum paid-up capital of Le 1 billion, while general insurance companies must maintain at least Le 500 million Additionally, insurers must deposit specified amounts with the Bank of Sierra Leone for each class of insurance business they intend to transact
Solvency Margin: Insurers must maintain a solvency margin to ensure they can meet their long-term obligations to policyholders
Insurance Intermediaries: The Act regulates the registration and conduct of insurance agents, brokers, and adjusters, specifying requirements for licensing, capital, and indemnity coverage
š¢ Regulatory Authority: Sierra Leone Insurance Commission (SLICOM)
SLICOM is tasked with overseeing the insurance industry in Sierra Leon. Its responsibilities include:
Licensing Issuing licenses to insurance companies and intermediarie.
Supervision Monitoring the financial health and compliance of insurer.
Consumer Protection Ensuring that policyholders' interests are safeguarde.
Regulatory EnforcementīImplementing and enforcing insurance laws and regulation.
š¼ Licensing and Compliance
Licensing Proces
To obtain an insurance license in Sierra Leone, companies mut:Register under the *Companies Act of 2009.
Submit an application to SLICOM, includig:
Certified copies of incorporation documens.
Details of directors and shareholdes.
Proof of compliance with capital and deposit requiremens.
Business plan and operational framewok.
Pay the prescribed application and license fes.
Capital and Deposit Requirement
As per the Insurance Act, insurers mut:
*Minimum Paid-Up Capital: Le 500 million for general insurance companies and Le 1 billion for life insurance companis.
*Statutory Deposit:īDeposits with the Bank of Sierra Leone are required for each class of insurance busines.
Compliance Obligation
Post-licensing, insurance companies are obligated o:
Submit quarterly financial and compliance reports to SLICM.
Provide audited annual financial statemens.
Undergo periodic inspections by regulatory authoritis.
š”ļø Compulsory Insurance Classs
Sierra Leone mandates certain types of insurance to protect public and professional interets:
*Motor Third-Party Liability Insurance: Required for all motor vehicles to cover damages to third partes.
*Professional Indemnity Insurance: Obligatory for certain professionals, including brokers and medical practitionrs.
*Employers' Liability Insurance Ensures protection for employees against workplace injures.
š International Insurance Regulaton
Sierra Leone permits 100% foreign direct investment (FDI) in its insurance sector, encouraging international participain. However, non-admitted insurance is not permitted; all insurance policies must be underwritten by insurers registered within the country
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