Section 2: Classification of insurance business.

(1) There shall be for the purpose of this Act two main classes of insurance that is-
(a) life insurance business; and
(b) general insurance business.
(2) In the case of life insurance, there shall be 3 categories-
(a) individual life insurance business;
(b) group life insurance and pension business; and
(c) health insurance business.
(3) In the case of general insurance, there shall be 8 categories-
(a) fire insurance business;
(b) general accident insurance business;
(c) motor vehicle insurance business;
(d) marine and aviation insurance business;
(e) oil and gas insurance business;
(f) engineering insurance business;
(g) bonds credit guarantee and suretyship insurance business; and
(h) miscellaneous insurance business.
(4) For the purposes of this Act-
(a) any part of an insurance business may be treated as part of a particular class of insurance business; and
(b) reinsurance of liabilities under an insurance policy shall be treated as insurance business of the class to which such policy would have belonged if it has been issued by the reinsurer.
(5) Subject to this Act, an insurer may be authorised to transact any new category of miscellaneous insurance business if he shows evidence of adequate reinsurance arrangement in respect of that category of insurance business and requisite capital where necessary and other conditions as may be required from time to time.
(6) If the National Insurance Commission (in this Act referred to as the "Commission") is satisfied that an insurer-
(a) has conducted his business in accordance with sound insurance principles; and
(b) has complied with the provisions of this Act, it shall in writing permit the insurer to conduct any class of insurance business in addition to those covered by his certificate of registration.