HL Deb 25 July 1930 vol 78 cc848-9

Clause 42, page 37, line 1, leave out ("a") and insert ("an assurance")

Clause 42, page 37, line 1, after ("company") insert ("within the meaning of the Assurance Companies Act, 1909,")

Clause 42, page 37, line 2, leave out ("the Assurance Companies Act, 1909,") and insert ("that Act")

Clause 42, page 37, line 6, leave out paragraph (a) and insert:

  1. "(a) If the company does not also carry on assurance business of some other class the reference in subsection (1) of Section two of that Act to the sum of 849 twenty thousand pounds shall be construed as a reference to the sum of fifteen thousand pounds;
  2. (b) If the company also carries on assurance business of some other class the reference in subsection (4) of the said section two to a sum of twenty thousand pounds shall, as respects the motor vehicle insurance business, be construed as a reference to a sum of fifteen thousand pounds, and, notwithstanding anything in the said Act relieving a company from making a deposit in respect of any class of insurance business where it has made a. deposit in respect of any other class of assurance business, the total sum to be deposited under the said subsection (4) shall in no case be less than thirty-five thousand pounds.")

EARL RUSSELL

My Lords, these Amendments are drafting Amendments in order to make clear the respective obligations of assurance companies and underwriters in respect of deposits. Under the Assurance Companies Act, 1909, the expression "assurance company" includes all persons or bodies of persons corporate or un-incorporate who carry on insurance business in the United Kingdom. The words proposed to be inserted are intended to make it clear that the word "company" has an equally wide significance. The effect of the Amendment is to make it obligatory on every person carrying on motor insurance business to deposit £15,000 in respect of that business in addition to any deposit required to be made in respect of other business. The special provisions of Section 28 (2) of the Act of 1909 in respect of the deposits or securities to be furnished by underwriters will apply in respect of motor insurance business undertaken by such underwriters. The new paragraphs (a) and (b) are also of a drafting character. Their object is to make it clear that a company which carries on motor vehicle insurance business only is to be required to deposit £15,000 only, and that where the company carries on other classes of business an additional deposit of £15,000 is to be made in respect of motor vehicle insurance business.

Moved, That this House doth agree with the Commons in the said Amendments.—(Earl Russell.)

On Question, Motion agreed to.