All insurance companies, whether state-owned, private, or joint-venture shall be allowed
to operate in the kingdom of Cambodia only in the form of public liability company (Anonymous company).

a- Life insurance company which is required to have registered capital in riel currency at
least equivalent to 5,000,000,00 (Five Million) SDR based on exchange rate on the date of license granting

b- The general insurance company which is registered to have registered capital in riels
currency at least equivalent 5,000,000,00 (Five Million) SDR based on the exchange rate on the date of license granting.

c- Life insurance and general insurance Company which is required to have registered
capital in riel currency at least equivalent to 10,000,000.00 (Ten Million) SDR based on the exchange rate on the date of license granting

The insurance Company as mentioned below will not be allowed to carry out insurance
business in the kingdom of Cambodia if :
a- Not being authorized by the competent authority.
b- Not being registered for any classes of insurance as provided in the article 46 of this law.

Before starting the insurance business, the licensed insurance Company shall fulfill the
following formalities as required by the Ministry of Economy and Finance:

-Provide document or letter being certified that the deposited of 10 percent of the registered capital has been put at the National Treasury of the Kingdom of Cambodia. This be posit shall be maintained until the Company cease the business operation in the kingdom of Cambodia.

-Provide document or letter being certified that the solvency margin has been maintained at a recognized bank in the Kingdom of Cambodia. This solvency margin shall be defined as per type of each insurance Company, but the minimum limit of solvency shall not be lower than 50 percent of the registered capital.

The state control shall be conducted for an advantage of the insured , the applicant and
the beneficiary and for capitalization as well.
As for the state owned and joint-venture company holding at least 51%(fifty one percent) being the state share, shall have to comply with the law of the general statute of the public enterprise.
The private insurance company shall have comply with the license granted by the
Ministry of Economy and Finance.

An insurance agent is a physical or legal person which receives insurance commissions
from insurance company and manage to handle the insurance business on behalf of the insurance company under the clearly specified mandate.

An insurance broker is a legal person which carries out insurance business for the benefit
to the insured , providing the intermediary services between the insured and the insurance company to conclude an insurance contract and legally collect brokerage commission.

The formalities, terms and conditions for the activities of the insurance agent and broker
shall be defined by the sub-decree.

Those who act against the article 36, article 40 or Article 42 of this Law shall be fined
from Riel150,000.00 (One hundred fifty thousand Riel) to Riel 1,500,000 (One million and five hundred thousand Riel) and imposed to buy insurance as well.

Any country act to the article 44 or Article 48 of this Law shall be fined from Riel
10,000,000(Ten million riel) to Riel 50,000,000 (fifty million riel) and the license must be revoked.

Those who act against article 47 of this Law shall be fined from Riel 50,000,000 (Fifty million riels)In case that these persons still continue committing this illegal act, they will be sentenced to imprisonment from 01 year (one year) to 05 years (five years)

Any Persons that carries out business as specified in article 40 of this law shall be
required to have insurance from an insurance company, the deadline of which is 30 june, 2001after this law comes into force.

Any Persons that carries out business as specified in Article 36 and Article 42 of this Law
shall be required to have insurance from an insurance company and the deadline of which is 31 December 2001 after this Law com into force.

Legal penalty shall be applied as specified in article 52 of this law if the two deadlines as
mentioned above are expired.

Any regulation contradicts this Law shall be deemed null and void.