§ Mr. Lyonsasked the President of the Board of Trade whether he will give particulars of the deposits from insurance companies, as required by his Department, at the latest convenient date?
Mr. StanleyUnder the Assurance Companies Act, 1909, a separate deposit of £20,000 is required from insurance companies in respect of each of the following classes of business:—(1) Life, (2) Employers' Liabiltiy, and (3) Bond Investment. A company transacting fire or accident insurance is also required to deposit £20,000, unless it already has a sum of that amount deposited in respect of some other class of insurance business except industrial life assurance business.
Companies which commenced to carry on fire, accident or bond investment business before the date of the passing of the 1909 Act and companies which commenced to carry on employers' liability business before the 28th August, 1907, are exempted from the deposit requirement in respect of those classes of business respectively. The Act makes special provision for mutual indemnity associations which in certain circumstances are exempted from the deposit requirement.
726WThe Industrial Assurance Act, 1923, and the Road Traffic Act, 1930, require separate deposits of £20,000 and £15,000 respectively to be made by companies transacting industrial life assurance business and motor vehicle insurance business respectively.
The effect of the Air Navigation Act, 1936, when it comes into force, will be to require a company transacting aircraft insurance business to deposit £15,000 in respect of such business, unless it already has a sum of that amount deposited in respect of motor vehicle insurance business.