Section 20: Provisions for unexpired risks and claims.

(1) An insurer shall in respect of its general business, establish and maintain the following provisions applicable in respect of each class of insurance business-
(a) provisions for unexpired risks which shall be calculated on a time apportionment basis of the risks accepted in the year;
(b) provision for outstanding claims which shall be credited with an amount equal to the total estimated amount of all outstanding claims with a further amount representing 10 per centum of the estimated figure for outstanding claims in respect of claims incurred but not reported at the end of the year under review; and
(c) provision for outstanding claims.