Section 22: Reserve for life insurance business.

(1) An insurer shall in respect of its life insurance business maintain the following reserves-
(a) a general reserve fund which shall be credited with an amount equal to the net liabilities on policies in force at the time of the actuarial valuation and an additional 25 per cent of net premium for every year between valuation date; and
(b) a contingency reserve fund which shall be credited with an amount equal to 1 per cent of the gross premiums or 10 per cent of the profits (whichever is greater) and accumulated until it reached the amount of the minimum paid-up capital.