Section 31, The Insurance Act, 2000

(1) The solvency margin of an insurer shall be as follows— (a) in the case of an insurer carrying on life insurance business the liabilities of the insurer shall not exceed the amount of the life insurance fund of the insurer; and (b) in the case of any other class of insurance business, the assets of the insurer shall exceed its liabilities by a minimum of one tenth of the premium income. (2) The Minister may, on the advice of the Commission prescribe— (a) the standard of solvency margin for insurers; (b) the method for calculating the assets and liabilities of an insurer for the purposes of this section. 24 No. 5 Insurance Act 2000 [Margin: Life insurance fund and its control.]