Section 131B
Continuation of life business
of Malaysia Deposit Insurance Corporation Act 2011
Notwithstanding section 83 of this Act and subparagraph 1(a)
of Part II of the Twelfth Schedule to the Companies Act 2016, the liquidator of an insurance company carrying on life business—
(a)
may carry on the insurance company’s life business with a view to such business being transferred as a going concern
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to another insurance company but shall not effect a new policy; and
(b)
subject to subsection (3), may transfer the insurance company’s assets and liabilities to another insurance company or a bridge institution, including liabilities under life policies and Division 4 of Part VI of the Financial
Services Act 2013 shall apply to the transfer.
(2)
The insurance company’s assets and liabilities referred to in subsection (1) are the assets and liabilities of the insurance fund and of the shareholders’ fund.
(3)
The liquidator may, for the purpose of a transfer under paragraph (1)(b), apply to the High Court for an order to reduce—
(a)
the amount of liabilities under life policies of the insurance company; or
(b)
the amount of its other liabilities, and the High Court may reduce the liabilities to the extent necessary taking into consideration the value of the insurance company’s available assets subject to such conditions as the High Court considers fit.