Schedule 1
(Section 2)
Classes of Insurance Business
1.
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(1) 'Ordinary long-term insurance business' means business of any of the following classes—
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(a) the effecting and carrying out of contracts of insurance on human life or contracts to pay annuities on human life;
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(b) the effecting and carrying out of contracts of insurance against the risks—
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(i) of death or personal injury of the persons insured resulting from an accident or from an accident of a specified class,
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(ii) of the persons insured becoming incapacitated as a result of disease or of a disease of a special class,
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if, in the absence of special circumstances specifically provided for in such contracts, they cannot be terminated before the expiration of 5 years from the date on which they were entered into;
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(c) the effecting and carrying out of contracts of insurance other than contracts referred to in paragraph (b), whether effected by the issue of policies, bonds or endowment certificate or otherwise, under which in return for one or more premiums paid to the insurer, a sum or a series of sums becomes payable to the insured at a future date.
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(2) Where the principal object of a contract of insurance is to insure a person against risks of such kinds that the business of effecting and carrying out contracts of insurance against such risks constitutes marine, aviation and transport insurance business, motor vehicle insurance business or property insurance business, a company shall not for the purpose of this Act be treated as carrying on ordinary long-term insurance business by reason only of the incidental inclusion in such a contract of a provision whereby the company assumes liability against the happening of personal accidents, whether fatal or not.
2. 'Industrial Life Insurance Business' means the business of effecting and carrying out insurance upon human life, premiums in respect of which are contracted to be paid at intervals of less than 2 months and which are received by means of collectors.
3.
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(1) 'Liability insurance business' means the business of effecting and carrying out contracts of insurance, against risks of the persons insured incurring liabilities to third parties, not being risks arising out of, or in connection with the use of motor vehicles or out of, or in connection with the use of vessels or aircraft or risks incidental to the construction, repair or docking of vessels or aircraft.
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(2) Where the principal object of a contract of insurance is to insure a person against risks of such kinds that the business of effecting and carrying out contracts of insurance against such risks constitutes property insurance business, a company shall not for the purpose of this Act be treated as carrying on liability insurance business by reason only of the incidental inclusion in such a contract of a provision whereby the company assumes liability against the risk of the person insured incurring liabilities to third parties.
4.
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(1) 'Marine, aviation and transport business' means the business of effecting and carrying out contracts of insurance—
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(a) upon vessels or aircraft, or upon the machinery, tackle, furniture or equipment of vessels or aircraft;
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(b) upon goods, merchandise or property of any description on board of vessels or aircraft;
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(c) upon the freight of, or any other interest in or relating to vessels or aircraft;
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(d) against damage arising out of, or in connection with, the use of vessels or aircraft, including third-party risks;
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(e) against risks incidental to the construction, repair or docking of vessels including third-party risks;
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(f) against loss of or damage to merchandise, baggage and other goods in transit (whether the transit is by sea, inland water, land or air, or partly one and partly another), including risks incidental to the transit insured from the commencement of the transit to the ultimate destination covered by the insurance; or
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(g) against any other risks insurance against which is customarily undertaken in conjunction with, or as falls within this definition by virtue of any of paragraphs (a) to (f).
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(2) Where the principal object of a contract of insurance is to insure a person against risks of such kinds that the business of effecting and carrying out contracts of insurance against such risks constitutes insurance business of some other class, a company shall not for the purpose of this Act be treated as carrying on marine, aviation and transport insurance business by reason only of the incidental inclusion in such a contract of a provision whereby the company assumes liability of a kind which by itself would constitute liability against any of the risks specified in paragraphs 4(1)(a) – 4(1)(g).
5.
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(1) 'Motor vehicle insurance business' means the business of effecting and carrying out contracts of insurance against loss of, or damage to, or loss or damage arising out of or in connection with the use of, motor vehicles, inclusive of third-party risks but exclusive of transit risks.
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(2) For the purposes of this Act a company shall not be treated as carrying on motor vehicle insurance business by reason only of the fact that goods, merchandise or property upon which a contract of insurance is effected by it (being goods, merchandise or property on board of a vessel or an aircraft) consist of, or include motor vehicles.
6.
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(1) 'Pecuniary loss insurance business' means the business of effecting and carrying out contracts of insurance against any of the following risks—
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(a) of loss to the persons insured arising from the insolvency of their debtors or from the failure (otherwise than through insolvency) of their debtors to pay their debts when due;
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(b) of loss to the persons insured arising from their having to perform contracts of guarantee entered into by them;
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(c) of loss to the persons insured attributable to interruptions of the carrying on of business carried on by them or to reductions of the scope of business so carried on;
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(d) of loss to the persons insured attributable to incurring unforeseen expenses; and
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(e) neither falling within any of paragraphs (a) to (d) nor being a kind such that the carrying on of the business of effecting and carrying out contracts of insurance against them constitutes the carrying on of insurance business of some other class.
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(2) Where the principal object of a contract of insurance is to insure a person against risks of such kinds that the business of effecting and carrying out contracts of insurance against such risks constitutes marine, aviation and transport insurance business, motor vehicle insurance business or property insurance business, a company shall not for the purpose of this Act be treated as carrying on pecuniary loss insurance business by reason only of the incidental inclusion in such a contract of a provision whereby the company assumes liability against the risks specified in paragraph 6(c) and 6(d).
7.
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(1) 'Personal accident insurance business' means the business of effecting and carrying out contracts of insurance against the risks of the persons insured—
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(a) dying or sustaining injury as the result of an accident or of an accident of a specified class; or
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(b) becoming incapacitated as the result of a disease or a disease of a specified class,
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where such contracts do not fall within the classes of contracts specified in paragraph (b) of the definition of Ordinary Long-term insurance business.
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(2) Where the principal object of a contract of insurance is to insure a person against risks of such kinds that the business of effecting and carrying out contracts of insurance against such risks constitutes marine, aviation and transport insurance business, motor vehicle insurance business or property insurance business, a company shall not for the purpose of this Act be treated as carrying on personal accident insurance business by reason only of the incidental inclusion in such a contract of a provision whereby the company assumes liability against the happening of personal accidents, whether fatal or not.
8. 'Property insurance business' means the business of effecting and carrying out contracts of insurance against risks of loss or damage to property, not being risks of such kinds that the business of effecting and carrying out contracts of insurance against them constitutes marine, aviation and transport insurance business or motor vehicle insurance business.