LICENSING AND SUPERVISION OF INSURANCE BUSINESS Statutory Deposit Directive No. SIB/50/2020
Whereas, establishing a fund necessary for the purposes stated and maintaining it with the National Bank of Ethiopia is necessary;
Now, therefore, the National Bank of Ethiopia has issued this directive pursuant to the authority vested in it by Article 20 of Insurance Business Proclamation No. 746/2012 and Article 64(2) of the Insurance Business Proclamation No. 746/2012 as amended by the Insurance Business (Amendment) Proclamation No.1163/2019.
- Short Title
This directive may be cited as “Statutory Deposit Directive No. SIB/50/2020”.
For the purpose of this directive, unless the context provides otherwise:
2.1 “main class of insurance business” means either general insurance business or . long term insurance business as the case may be;
2.2 “National Bank” means the National Bank of Ethiopia; and
2.3 “statutory deposit” means deposit to be maintained, in cash or government securities by an insurance company with the National Bank.
- Scope of Application
This directive shall apply to all insurance and reinsurance companies.
An insurer or a reinsurer shall, in respect of each main class of insurance business it carries on, deposit and keep deposited with the National Bank an amount equal to 1S°/o of its paid-up capital in cash or government securities.
- Effective Date
This directive shall enter into force as of the 4’h day of August 2020.