Cap. 403 Art. 34Effect of approval under article 33.

(1) Subject to sub-article (2), a scheme giving effect to a transfer approved by the competent authority under article 33 shall be effectual in law -

(a) to transfer to the transferee all the transferor’s rights and obligations under the policies included in the transfer scheme; and

(b) if the scheme so provides, to secure the continuation by or against the transferee of any legal proceedings by or against the transferor which relate to those rights or obligations, notwithstanding the absence of any agreements or consents which would otherwise be necessary for it to be effectual in law for those purposes.

(2) A transfer approved by the competent authority shall automatically be valid against policyholders, the insured persons and any other person having rights or obligations arising out of the contracts transferred.

(3) Except in so far as the competent authority may otherwise direct, a policyholder whose policy is included in such a scheme shall be given written notice of its carrying out by the transferee.