Section 101

property which at the time of the making of the contract is situated in Malaysia or is in transit to or from Malaysia;

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a ship or an aircraft registered in Malaysia and all liabilities arising from the operation of such ship or aircraft;

the life or any contingency related to any person who, at the time of the making of the contract, is a resident;

or

a risk of any nature in respect of any person who, at the time of the making of the contract, is a resident;

“general insurance business” means insurance business which is not life insurance business but which includes accident, medical, surgical and hospital expenses insurances related to any person;

“insurance business” means the business of effecting and carrying out contracts—

protecting persons against loss or liability to loss in respect of risks to which such persons may be exposed; or

to pay a sum of money or other thing of value upon the happening of an event, and includes reinsurance business;

“insurance licence” means a licence granted under this Part;

“insured” means a person who is covered by an insurance policy;

“insurer” means a person who carries on insurance business;

“Labuan captive insurance business” means Labuan insurance business where the insured is a related corporation or associate corporation of the Labuan insurer or where the insured is any other person in respect of whom the Labuan insurer is authorized by the Authority to provide insurance or reinsurance;

“Labuan insurance broker” means a person who is licensed to—

arrange Labuan insurance business on behalf of prospective or existing policy owners;

Act 704

arrange Labuan reinsurance business on behalf of any insurer seeking reinsurance; or

analyze the financial circumstances of another person and provides a plan to meet that other person’s financial needs and objectives, whether or not a fee is charged in relation thereto;

“Labuan insurance business” means insurance and reinsurance business which includes takaful and retakaful business, Labuan captive insurance business and such other insurance business approved by the Authority but does not include any insurance business that is regulated or prohibited under other written law in Malaysia;

“Labuan insurance manager” means a person who is licensed to provide management or administration services related to Labuan insurance business but does not include a Labuan underwriting manager;

“Labuan insurer” means a person who is licensed to carry on

Labuan insurance business;

“Labuan underwriting manager” means a person, not being a bona fide employee, who is licensed to provide underwriting services, including the administration of the business, to one or more Labuan insurers;

“life insurance business” means insurance business connected with any policy by which payment of policy monies is insured on death or on the happening of any contingency dependent on the termination or continuation of human life and includes any incidental extension of cover and reinsurances of such business;

“Malaysian insurer” means an insurer which is licensed under the *Insurance Act 1996 [Act 553] or the **Takaful Act 1984 [Act 312];

“net premium income”, in relation to a financial year, means the premiums receivable under contracts of insurance or reinsurance after deducting any premiums payable for reinsurances arranged in respect of such contracts of insurance or reinsurance;

*NOTE—The Insurance Act 1996 [Act 553] has since been repealed by the Financial Services Act 2013

[Act 758] which comes into operation on 30 June 2013—see sections 271 and 272 of Act 758.

**NOTE—The Takaful Act 1984 [Act 312] has since been repealed by the Islamic Financial Services

Act 2013 [Act 759] which comes into operation on 30 June 2013—see sections 282 and 283 of Act 759.

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“policy” means an insurance policy and includes a cover note or any written contract of insurance whether or not embodied in or evidenced by an instrument in the form of an insurance policy; and any reference to a policy of an insurer includes a reference to any policy in respect of which the insurer is under any liability, whether the policy was issued by the insurer or the liability was transferred to the insurer from another insurer;

“policy owner” means any person who effects a policy;

“reinsurance business” means a business whereby the reinsurer assumes a part of the liability under an original contract of insurance of another insurer or reinsurer;

“reinsurer” means a person who carries on or transacts or holds himself out as carrying on or transacting reinsurance business;

“working funds” means—

in relation to a Labuan company, the paid-up capital unimpaired by losses; and

in relation to a foreign Labuan company or a branch of a Malaysian insurer, the surplus of assets over liabilities to be maintained in the books of its office in Labuan.

Where fifteen per centum or more of the voting shares of a corporation are held by another corporation, the first-mentioned corporation shall be deemed to be an associate corporation of the other corporation, and any reference in this Act to an “associate corporation” shall be construed as a reference to that first-mentioned corporation or that other corporation, as the case may be.