National Insurance Act


Published: 1974-10-07

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National Insurance Act
NATIONAL INSURANCE [CH.350 – 1




LRO 1/2010 STATUTE LAW OF THE BAHAMAS

NATIONAL INSURANCE

CHAPTER 350

NATIONAL INSURANCE

LIST OF AUTHORISED PAGES

1 – 2 LRO 1/2010
3 – 4 LRO 1/2006
5 – 6 LRO 1/2010
7 – 12 Original
13 – 14 LRO 1/2010
15 – 22 Original
23 – 24 LRO 1/2006
25 – 28 Original
29 – 30 LRO 1/2006
31 – 32 Original
33 – 34 LRO 1/2006
35 – 42 Original
43 – 48 LRO 1/2006


ARRANGEMENT OF SECTIONS


PART I

PRELIMINARY
SECTION

1. Short title.
2. Interpretation.


PART II
THE NATIONAL INSURANCE BOARD


3. Establishment and constitution of the National Insurance Board.
4. Incorporation.
5. Affixing of seal and authentication of documents.
6. Meetings of the Board and procedure.
7. Minister may give general and specific directions to Board.
8. Power to appoint committees.
9. Power to delegate.
10. Remuneration of members, co-opted persons and committee members.
11. Protection of Board and its members.


PART III
INSURED PERSONS AND CONTRIBUTIONS


12. Description of classes of insured persons.
13. Insurance of persons.

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14. Duty of register
15. Source of funds.
16. Exceptions from liability for, and crediting of, contributions.
17. Voluntary contributions.
18. Contributions of employed persons and employers.
19. General provisions as the payment and collection of contributions.
20. Persons to be treated as employers.


PART IV
BENEFITS


21. Description of benefits.
22. Integration of statutory benefits with contractual benefits.
23. Rates of benefits.
24. Regulations with regard to payment of benefits and as respects persons

abroad, or in prison, persons unable to act and deceased persons.
25. Presumptions and general provisions relating to accidents.
26. Prescription of diseases.
27. Regulations relating to diseases and medical officers and boards.
28. Payment of medical officers, medical referees and boards.
29. Accidents and diseases in course of illegal employment.
30. Benefit where disease is personal injury by accident.
31. Repayment of benefit improperly received.
32. Benefits to be inalienable.


PART V
ASSISTANCE


33. Description of assistance and persons entitled.
34. Assistance payments to persons ordinarily resident.
35. Absence from The Bahamas.
36. Rates of assistance.
37. Regulations with regard to payments of assistance.
38. Repayment of assistance improperly received.
39. Assistance to be inalienable.


PART VI
ADMINISTRATION, FINANCE AND LEGAL PROCEEDINGS


40. Officers and employees of the Board.
41. Designation and powers of inspectors.
42. Maintenance of records.
43. Proceedings against officers and employees of the Board under this

Act.
44. Establishment of National Insurance Fund.
45. Temporary insufficiency of Fund.
46. Expenses of Post Office.
47. Report and accounts to be submitted to Minister.
48. Review of operation of Act.
49. Determination of claims and questions.
50. Interim payments, arrears and repayments.
51. Payment of persons and tribunals appointed or constituted under

section 49.

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52. Offences and penalties.
53. General provisions as to prosecutions under Act.
54. Recovery of contributions on prosecutions under Act.
55. Civil proceedings to recover sums due to the Fund.
56. Proceedings against employer for benefit lost by employer’s default.


PART VII
MISCELLANEOUS


57. Application of Act to certain categories of persons.
58. Persons employed on board ships, vessels or aircraft.
59. Insured persons outside The Bahamas.
60. Reciprocal agreements with other parts of the Commonwealth or with

foreign countries.
61. Exemption from stamp duty.
62. Power to make regulations, etc.
63. Regulations and orders to be approved.
64. Measure of damages where industrial benefit applies.
65. Amendment or repeal of other enactments.

FIRST SCHEDULE — Employment as an Employed Person.
SECOND SCHEDULE — Constitution of National Insurance Board.
THIRD SCHEDULE — Powers of Board to Invest.








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CHAPTER 350

NATIONAL INSURANCE
An Act to establish a system of national insurance

providing pecuniary payments in respect of sickness,
invalidity, maternity, retirement, death, industrial
injury and disablement and death from industrial
injury, medical care, and of social assistance for
insured and other persons not qualifying for such
payments as of right and for purposes connected with
or incidental to the matters aforesaid.

[Assent 12th December, 1972]
[Commencement:1 7th October, 1974]

PART I
PRELIMINARY

1. This Act may be cited as the National Insurance
Act.

2. In this Act, unless the context otherwise requires —
“this Act” includes any regulations;
“actuary” means a Fellow of the Institute of

Actuaries or of the Faculty of Actuaries of
Great Britain or a Fellow of the Society of
Actuaries of the United States of America or a
person who in the opinion of the Minister is
qualified as an actuary;

“appointed day”, in relation to any provision of this
Act or to any class of insured person, means the
day appointed under section 1 in respect of that
provision or class;

“assistance” means assistance payable under Part V;
“award” means an award of benefit or assistance;
“beneficiary” means a person entitled to benefit or,

as the case may be, assistance;


1 Provisions other than provisions relating to self employed persons: 7th October, 1974;
provisions relating to self employed persons: 5th April, 1976

21 of 1972
12 of 1974
22 of 1975
7 of 1981
3 of 1984
10 of 1986
36 of 1998
S.I. 36/2005
2 of 2009

Short title.

Interpretation.

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“benefit” means benefit which is payable under Part
IV;

“the Board” means the National Insurance Board
established by section 3;

“claimant” means a person claiming benefit or, as the
case may be, assistance or whose right to be
excepted from liability to pay, or to be credited
with, a contribution is in question;

“compulsory school age” has the same meaning as in
subsection (1) of section 23 of the Education
Act;

“contract of service” means any contract of service or
apprenticeship, whether written or oral, and
whether expressed or implied;

“contribution” means a contribution payable to the
Fund pursuant to this Act;

“contribution period” means the prescribed period in
respect of which a contribution is payable;

“declared day”1 means the day declared under
subsection (3) of section 21 for the purpose of
bringing subsection (2) of that section into
operation;

“Director” means the Director appointed by the
Board pursuant to section 40 and any person
appointed to act in his place;

“disease” includes personal injury not caused by
accident and any condition which has resulted
from a disease or personal injury;

“employed person” means, subject to subsection (2)
of section 12, any person in an employment
specified in the First Schedule;

“employer” includes
(a) any managing agent of an employer;
(b) the personal representative of a deceased

employer;
(c) in relation to a person engaged in plying for

hire with any vehicle or vessel the use of
which is obtained from the owner thereof
under a contract of bailment (other than a
hire-purchase agreement), the said owner;


1 1st November 1980, declared by S.I. 58/1980.

First Schedule.

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(d) in relation to a person employed for the
purposes of any game or recreation and
engaged or paid through a club, the
manager, or, where the club is managed by
a committee, the members of the managing
committee, of the club;

“the Fund” means the National Insurance Fund
established by section 44;

“incapable of work” means incapable of engaging in
gainful occupation by reason of some specific
disease or bodily or mental disablement or
deemed, in accordance with regulations, to be
so incapable;

“industrial benefit” means any benefit provided for in
subsection (2) of section 21;

“insured person” means a person insured under this
Act for the benefits set out in subsection (1) of
section 21;

“loss of faculty” means the partial or total loss of the
normal use of an organ or part of the body or
the destruction or impairment of any bodily or
mental function (including disfigurement
whether or not accompanied by actual loss of
function);

“managing agent” means any person appointed or
acting as the representative of another person
for the purpose of carrying on such other
person’s trade or business, but does not include
an individual manager subordinate to an
employer;

“mariner” means —
(a) a master or member of the crew of a vessel;

or
(b) a person employed in any other capacity on

board a vessel whose employment on such
vessel is that of an employed person under
paragraph 2 of the First Schedule;

“master”, when used in relation to a vessel, means
any person except a pilot having charge or
command of the vessel;

“member of the crew”, in relation to a vessel or
aircraft, means every person (except a master or
pilot) employed or engaged in any capacity on
board the vessel or aircraft;

First Schedule.

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STATUTE LAW OF THE BAHAMAS [Original Service 2001]

“Minister” means the Minister responsible for
National Insurance;

“Part” means a Part of this Act;
“prescribed” means prescribed by regulations made

under this Act;
“prime rate” means —

(a) the rate of interest set by commercial banks
in conjunction with the Central Bank of
The Bahamas for lending to its prime
customers;

(b) where there is no such rate set, the rate
charged by the Royal Bank of Canada for
lending to its prime customers;

“regulations” means regulations made under this Act;
“resources” means all property, whether of a capital

nature or not, available to a claimant for
assistance except such disregarded resources as
may be prescribed;

“self-employed person” means a person gainfully
occupied in an occupation in The Bahamas who
is not in respect of that occupation, an
employed person;

“voluntarily insured person” means an insured person
whose insurance under this Act is continued
voluntarily pursuant to section 13;

“wages” includes salary or any other pecuniary
remuneration as may be prescribed.

PART II
THE NATIONAL INSURANCE BOARD

3. (1) There shall be established for the purposes of
this Act a body to be called “the National Insurance Board”
(in this Act referred to as “the Board”).

(2) The provisions of the Second Schedule shall
have effect as to the constitution of the Board and
otherwise in relation thereto.

4. (1) The Board shall be a body corporate having
perpetual succession and a common seal and, subject to the
approval of the Minister, capacity to acquire, lease and
hold property and to make any disposal thereof.

3 of 1984, s. 3.

12 of 1974, s. 2.

Establishment
and constitution
of the National
Insurance Board.

Second Schedule.

Incorporation.
7 of 1981, s. 2

3 of 1984, s. 4.

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(2) The Board may sue and be sued in its corporate
name and may for all purposes be described by that name,
and service upon the Board of any notice, order or other
document of whatever kind shall be executed by delivering
the same to, or sending it by registered post addressed to,
the Director at the principal office of the Board.

5. (1) The seal of the Board shall be kept in the
custody of the chairman or deputy chairman or such officer
of the Board as the Board may approve, and may be
affixed to instruments pursuant to a resolution of the Board
and in the presence of the chairman or deputy chairman
and one other member.

(2) The seal of the Board shall be authenticated by
the signature of the chairman or deputy chairman and one
other member, and such seal shall be officially and
judicially noticed.

6. (1) The Board shall meet at such times as may
be necessary or expedient for the transaction of business,
and such meetings shall be held at such places and times
and on such days as the Board may determine.

(2) The chairman or, in the event of his being absent
from The Bahamas or for any reason whatsoever unable to
act, the deputy chairman may at any time call a special
meeting of the Board and shall call a special meeting
within seven days of a requisition for that purpose
addressed to him in writing by any four members.

(3) The chairman or, in his absence, the deputy
chairman shall preside at all meetings of the Board.

(4) The chairman or, in his absence, the deputy
chairman shall form a quorum together with six other
members.

(5) The decision of the Board shall be by a majority
of votes and in addition to an original vote in any case in
which the voting is equal the chairman or deputy chairman
presiding at any meeting shall have a casting vote.

(6) Minutes in proper form of each meeting shall be
kept by such officer of the Board as the Board may appoint
for the purpose and shall be confirmed by the Board at the
next meeting and signed by the chairman or deputy
chairman, as the case may be.

Affixing of seal
and
authentication of
documents.

Meetings of the
Board and
procedure.

22 of 1975, s. 2.

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STATUTE LAW OF THE BAHAMAS [Original Service 2001]

(7) The Board may co-opt any one or more persons
to attend any particular meeting of the Board for the
purpose of assisting or advising the Board in any matter
with which the Board is dealing, but no co-opted person
shall have the right to vote.

7. The Minister, after consultation with the Board,
may give to the Board such directions whether of a general
or a specific character regarding the discharge of the
Board’s functions under this Act or any regulations as
appear to the Minister to be requisite in the public interest,
and the Board shall give effect to any such directions.

8. (1) Subject to the provisions of this Act, the
Board may appoint such committees of the Board as it
thinks fit:

Provided that any committee so appointed shall
include not less than two members of the Board, and may
include persons who are not members of the Board.

(2) Subject to the provisions of this Act, the
constitution of a committee of the Board shall be
determined by the Board.

9. (1) Subject to the provisions of this Act, the
Board may in writing delegate to any member or
committee or officer or employee of the Board the power
to carry out on its behalf such functions as the Board may
determine.

(2) Every delegation under this section shall be
revocable by the Board and no delegation shall prevent the
exercise by the Board of any function.

10. There shall be paid out of the Fund —
(a) to each member, in respect of his office as such,

such remuneration and allowances (if any) as the
Minister may determine and to the chairman and
to the deputy chairman in respect of their offices
as such, such remuneration and allowances (if
any), in addition to any remuneration or
allowances to which they may be entitled in
respect of their offices as members, as may be so
determined;

(b) to any person co-opted under subsection (7) of
section 6 and to any person not being a member
of the Board serving on a committee appointed
under section 8 such remuneration and
allowances (if any) as the Board may by
resolution declare.

Minister may
give general and
specific
directions to
Board.

Power to appoint
committees.

12 of 1974, s. 3.

Power to
delegate.

Remuneration of
members, co-
opted persons
and committee
members.

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11. No act done or proceedings taken under this Act
shall be questioned on the ground of any omission, defect
or irregularity not affecting the merits of the case.

PART III
INSURED PERSONS AND CONTRIBUTIONS

12. (1) For the purposes of this Act, insured persons
shall consist of the following three classes, namely —

(a) employed persons;
(b) self employed persons;
(c) voluntarily insured persons.
(2) Regulations may modify the class of any insured

person or may exclude any person from any class where it
appears to the Minister desirable to make a regulation for
that purpose by reason of the nature of that person’s
employment or occupation or otherwise.

13. Subject to the provisions of this Act —
(a) every person who on or after the appointed day

is above the upper limit of compulsory school
age and is either —

(i) an employed person; or
(ii) a self employed person,
shall be insured under this Act; and

(b) every person who on or after the appointed day,
having been insured under this Act by virtue of
paragraph (a) of this subsection, ceases to be so
insured, may become insured as a voluntarily
insured person under this Act.

14. (1) Every person who operates a business shall —
(a) register that business with the Board within ten

working days of commencing operations; and
(b) insure all persons employed in that business.
(2) For the purposes of this section, “business”

includes a profession, calling, vocation, occupation, trade,
manufacture or undertaking of any kind whatever, an
adventure or concern in the nature of trade.

15. (1) For the purposes of this Act, contributions
shall, subject to the provisions of this Act, be payable by
insured persons and by employers.

Protection of
Board and its
members.

Description of
classes of insured
persons.

Insurance of
persons.

Duty of register
36 of 1998, s. 3.

Source of funds.

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STATUTE LAW OF THE BAHAMAS [Original Service 2001]

(2) Regulations shall provide for fixing, from time
to time, the rates of contribution to be paid by such
different categories of insured persons and employers as
may be prescribed.

(3) For the purposes of Part V of this Act, there
shall be an annual grant to the Fund out of the
Consolidated Fund as provided in subsection (3) of section
45.

16. Regulations may provide for —
(a) excepting insured persons from liability to pay

contributions for such periods as may be
prescribed or, without prejudice to the generality
of the foregoing, for periods —

(i) of incapacity for work; of
(ii) of full-time unpaid apprenticeship;

(b) crediting contributions to insured persons for
periods for which such persons are excepted
from liability to pay contributions under
paragraph (a) of this section.

17. A voluntarily insured person may pay within
such time and in such manner as may be prescribed, a
prescribed rate of contribution for any period in which he
is not liable to pay a contribution as an employed or a self
employed person.

18. (1) Except where regulations otherwise provide,
an employer liable to pay a contribution in respect of a
person employed by him shall in the first instance be liable
to pay also on behalf of and to the exclusion of such person
any contribution payable by such person for the same
contribution period, and, for the purposes of this Act,
contributions so paid by an employer on behalf of such
person shall be deemed to be contributions paid by such
person.

(2) Notwithstanding any contract to the contrary, an
employer shall not be entitled to deduct from the wages of
a person employed by him or otherwise to recover from
such person the contribution of the employer in respect of
such person.

(3) An employer shall be entitled, subject to and in
accordance with regulations, to recover from a person
employed by him the amount of any contribution paid or

Exceptions from
liability for, and
crediting of,
contributions.

Voluntary
contributions.

Contributions of
employed
persons and
employers.

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to be paid by him on behalf of such person, and,
notwithstanding anything in any enactment, such
regulations may authorise such recovery to be made by
deductions from the wages of such person.

19. Regulations may provide —
(a) for the payment and collection of contributions;
(b) for treating, for the purposes of any right to

benefit, contributions paid after the due dates as
paid on such dates or on such later dates as may
be prescribed, or as not having been paid;

(c) for treating, for the purposes of any right to
benefit, contributions payable by an employer
on behalf of an employed person but not paid as
paid where the failure to pay is shown not to
have been with the consent or connivance of, or
attributable to any negligence on the part of,
such person;

(d) for treating contributions of the wrong class or at
the wrong rate as paid on account of the
contributions properly payable;

(e) for the return of contributions paid in error.
20. In relation to any person who —
(a) is employed by more than one employer in any

contribution period; or
(b) works under the general control or management

of some person other than his immediate
employer,

and in relation to any other cases for which it appears to
the Minister that special provision is needed, regulations
may provide that for the purposes of this Act the prescribed
person shall be treated as the employer of the person in
question, and such regulations may further provide for
adjusting the rights between themselves of the person
prescribed as the employer, the immediate employer and
the person employed.

PART IV
BENEFITS

21. (1) Subject to subsections (2) and (3), benefits
shall be of the following kinds only —

(a) retirement benefit, that is to say, periodical
payments to an insured person who has reached
sixty-five years of age and retired from gainful

General
provisions as to
the payment and
collection of
contributions.
3 of 1984, s. 5.

Persons to be
treated as
employers.

Description of
benefits.

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occupation in such circumstances as may be
prescribed;

(b) invalidity benefit, that is to say, periodical
payments to an insured person who is rendered
permanently incapable of work otherwise than
as a result of employment injury;

(c) survivor’s benefit, that is to say, a payment or
periodical payments made to a survivor in
respect of the death of an insured person who
immediately before his death was receiving
retirement benefit or invalidity benefit, or in
respect of the death of an insured person who
dies otherwise than as a result of employment
injury;

(d) sickness benefit, that is to say, periodical
payments to an insured person who is rendered
temporarily incapable of work otherwise than as
a result of employment injury;

(e) maternity benefit, that is to say, periodical
payments to an insured woman in the case of her
pregnancy or confinement;

(f) funeral benefit, that is to say, a payment on the
death of an insured person or of a person in such
a relationship to an insured person as may be
prescribed;

(g) medical benefit, that is to say, medical care and
attention to an insured person and his dependants
in such circumstances, manner and subject to
such conditions as may be prescribed;

(h) unemployment benefit, that is to say, periodical
payments to an employed person who has lost
his job or is working on reduced time during a
designated period;

In this subsection and in subsection (1) of section 33,
the expression “employment injury” means such injury as
before the declared day attracts compensation under the
Workmen’s Compensation Act3 or on or after that day
attracts industrial benefit under this Act.

(2) Subject to subsection (3), there shall be, in
addition to the benefits specified in subsection (1),
industrial benefit, which shall comprise —


3 See Fourth Schedule.

3 of 1984, s. 6.

2 of 2009, s. 2.

25 of 1943

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(a) injury benefit, that is to say, in addition to such
free medical care and attention as may be
prescribed, periodical payments to an employed
person or such self employed person as may be
prescribed, who suffers personal injury which is
caused by an accident arising out of and in the
course of his employment as an employed
person or a self employed person as aforesaid, or
develops any disease due to the nature of such
employment;

(b) disablement benefit, that is to say, in addition to
such free medical care and attention as may be
prescribed, a payment or periodical payments to
an employed person or such self-employed
person as may be prescribed, who, as a result of
an injury or disease such as is referred to in
paragraph (a) of this subsection, suffers loss of
faculty;

(c) death benefit, that is to say, a payment or
periodical payments in respect of an employed
or such self employed person as may be
prescribed, who dies as a result of such injury or
disease as is referred to in paragraph (a)
aforesaid:

Provided that, subject to the provisions of sections 58
and 59, industrial benefit shall not be payable in respect of
an accident happening or a prescribed disease developing
while the employed person or such self-employed person
as aforesaid is outside The Bahamas.

(3) The provisions of subsection (2) shall come into
operation on such date3 not being earlier than three months
after the first appointed day for the purposes of the Act, as
may be declared by the Minister by notice in the Gazette.

22. (1) Subject to subsection (6) and notwithstanding
anything to the contrary contained in any other law or
contract of service, or any agreement with the employees,
every employer is entitled to —

(a) modify in such manner as may be prescribed, the
rate of contributions and benefits payable under
any pension scheme instituted by him for the
benefit of his employees (hereinafter called the



3 1st November 1980, declared by S.I. 58/1980.

3 of 1984, s. 6.

Integration of
statutory benefits
with contractual
benefits.
10 of 1986, s. 2.

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“Occupational Pension Scheme”) for the
purpose of eliminating overlapping benefits and
contributions and for ensuring that the aggregate
of the pension receivable under that scheme by
an employee upon his retirement from the
service of the employer or upon attainment of
the prescribed retirement age or by reason of his
invalidity and the amount of the retirement or
invalidity benefit receivable by the employee
under this Act does not exceed the salary
payable to him immediately prior to such
retirement or invalidity:

Provided that no such modification shall
have effect of reducing the amount of pension
payable under the Occupational Pension Scheme
below the level of the accrued occupational
pension as may be actuarially determined under
the scheme on the date on which the
modification takes effect.

(b) modify the terms and conditions of the contract
of service relating to the payment of wages to an
employee during sick leave or maternity leave
by withholding the payment of any wages or any
part thereof for the purpose of ensuring that the
aggregate of the wages and any sickness, injury
or maternity benefit payable or paid to the
employee during such leave or any part thereof
does not exceed the amount of wages which
would normally be payable during the same
period by the employer to the employee but for
such sick leave or maternity leave.

(2) For the avoidance of doubt any modification as
that mentioned in subsection (1)(b) and taken pursuant to
regulations made under this Act prior to the enactment of
that subsection shall be deemed to have been taken as if
that subsection had been in force.

(3) No employer shall make any modification
pursuant to subsection (1)(a) without obtaining the prior
written approval of the Minister and for which purpose he
shall submit a copy of the relevant Occupational Pension
Scheme together with such particulars and information as
may be required by the Minister.

(4) Any person who is in breach of subsection (3) or
fails to comply with any lawful request thereunder shall be


36 of 1998, s. 4.

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guilty of an offence and liable on summary conviction to a
fine not exceeding ten thousand dollars or to imprisonment
for a term not exceeding five years or to both such fine and
imprisonment.

(5) The National Insurance Board shall comply with
reasonable requests from an employer to be furnished with
information of the benefits payable to any of his employees
under the National Insurance Act for the purpose of giving
effect to subsections (1) and (2).

(6) Nothing in subsections (1) and (2) shall affect —
(a) the grant and payment under any law to a person

of an award to which Article 122 of the
Constitution applies;

(b) the continuity of existing payments of a sum to
any person who is at the coming into force of
this section in receipt of that sum or to whom the
right to such payments has accrued.

23. Regulations shall provide for —
(a) the rates or amounts of benefit and the variation

of such rates or amounts in different or special
circumstances;

(b) the conditions subject to which and the periods
for which benefit may be granted; and

(c) the date as from which benefit is provided.
24. Regulations may provide —
(a) for the time and manner of paying benefit and as

to the information and evidence to be furnished by
persons when applying for payment and, without
prejudice to the generality of the foregoing and
notwithstanding anything in this Act, for adjusting
the commencement and termination of benefit so
that payments may be made in respect of periods
less than a contribution period or at different rates
for different parts of a contribution period, and for
extinguishing the right to any sum payable by way
of benefit where payment thereof is not obtained
within six months or such shorter period as may be
prescribed from the time at which such sum is
receivable in accordance with the regulations;

Rates of benefits.

Regulations with
regard to
payment of
benefits and as
respects persons
abroad, or in
prison, persons
unable to act and
deceased persons.

3 of 1984, s. 7.

CH.350 – 18] NATIONAL INSURANCE





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

(b) for the prevention of the receipt for the same
period of two amounts of benefit or assistance and
the adjustment of benefit or assistance in the case
of any special circumstances;

(c) for the circumstances in which and the time for
which a person shall be disqualified for or
disentitled to receipt of benefit, or benefit may
be forfeited or suspended and, without prejudice
to the generality of the foregoing, for the
suspension of payment of benefit to or in respect
of any person during any period when he is —

(i) absent from The Bahamas; or
(ii) undergoing imprisonment or detention in

legal custody,
and for the circumstances in which and the
manner in which payment of the whole or any
part of any benefit may, instead of being so
suspended, be made during any such period to or
for the maintenance of such persons as may be
specified in the regulations, being persons
nominated by the person entitled to the benefit
or who in the opinion of the Director are
dependants of that person;

(d) for enabling a person to be appointed to
exercise, on behalf of a claimant or beneficiary
who is a minor or who may be or become unable
for the time being to act, any right or power
which the claimant or beneficiary may be
entitled to exercise under this Act, and for
authorising a person so appointed to receive and
deal with any sum payable by way of benefit on
behalf of the claimant or beneficiary;

(e) in connection with the death of any person, for
enabling a claim for benefit to be made or
proceeded with in his name, for authorising
payment or distribution of benefit to or amongst
persons claiming as his personal representatives,
legatees, next-of-kin or creditors (or, in a case
where the deceased person was illegitimate, to
or amongst others) and for dispensing with strict
proof of the title of persons so claiming; and

(f) for such other matters as may be necessary for
the proper administration of benefits, including
the obligations of persons claiming any benefit,
beneficiaries and employers.

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25. For the purposes of this Act an accident —
(a) arising out of employment of an employed

person shall be presumed, unless the contrary is
shown, to have occurred in the course of the
employment and, where the accident occurred in
the course of the employment, it shall be
presumed, unless the contrary is shown, to have
arisen out of the employment;

(b) shall be deemed to arise out of and in the course
of the employment of an employed person,
notwithstanding that he is at the time of the
accident acting in contravention of any statutory
or other regulations applicable to his
employment, or of any orders given by or on
behalf of his employer, or that he is acting
without instructions from his employer, if the act
is done for the purpose of and in connection
with the trade or business of the employer;

(c) happening while an employed person is, with the
express or implied permission of his employer,
travelling as a passenger by any vehicle, ship,
vessel or aircraft to or from his place of work
shall, notwithstanding that he is under no
obligation to his employer to travel by such
vehicle, ship, vessel or aircraft, be deemed to
arise out of and in the course of his employment,
if —

(i) the accident would have been deemed so
to have arisen had he been under such an
obligation; and

(ii) at the time of the accident, the vehicle,
ship, vessel or aircraft is being operated by
or on behalf of his employer or some other
person by whom it is provided in
pursuance of arrangements made with his
employer and is not being operated in the
ordinary course of a public transport
service;

(d) happening to an employed person in or about any
premises at which he is for the time employed for
the purposes of the trade or business of his
employer shall be deemed to arise out of and in
the course of his employment if it happens while
he is taking steps, in an actual or supposed
emergency at those premises, to rescue,


Presumptions
and general
provisions
relating to
accidents.

CH.350 – 20] NATIONAL INSURANCE





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

succour or protect persons who are, or are
thought to be or possibly to be, injured or
imperilled, or to avert or minimise serious
damage to property.

26. A disease may be prescribed for the purposes of
this Act in relation to any employed person if the Minister
is satisfied that —

(a) it ought to be so prescribed having regard to its
causes and incidence and any other relevant
considerations, as a risk of their occupations and
not as a risk common to all persons; and

(b) it is such that, in the absence of special
circumstances, the attribution of particular cases
to the nature of the employment can be
established or presumed with reasonable
certainty,

and regulations prescribing any such disease may provide
that a person who developed the disease on or at any time
after a date specified in the regulations, being a date before
the regulations come into force but not before the declared
day, shall be treated for the purposes of this Act, subject to
any prescribed modifications, as if the regulations had been
in force when he developed the disease.

27. Regulations may provide for —
(a) determining the time at which a person is to be

treated for the purposes of this Act as having
developed any prescribed disease and the
circumstances in which any such disease is,
where the person in question has previously
suffered therefrom, to be treated as having
recrudesced or having been developed afresh;

(b) presuming any prescribed disease —
(i) to be due, unless the contrary is proved, to

the nature of the employment of any
person where he was employed in any
prescribed occupation at the time when, or
within a prescribed length of time
(whether continuous or not) before, he
developed the disease;

(ii) not to be due to the nature of the employment
of any person unless he was employed in
some prescribed occupation at the time when,
or within a prescribed length of time


Prescription of
diseases.

Regulations
relating to
diseases and
medical officers
and boards.

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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

(whether continuous or not) before, he
developed the disease;

(c) the appointment of medical officers and medical
referees and the establishment of medical boards
for the purposes of this Act; and

(d) such matters as appear to the Minister to be
incidental to or consequential on provisions
included in regulations by virtue of the
foregoing provisions of this section.

28. There shall be paid out of the Fund to a medical
officer or a medical referee appointed under regulations
made under paragraph (c) of section 27 and to a member of
a medical board established in accordance with such
regulations, such remuneration and allowances, if any, and
any such officer, referee or member shall be reimbursed
out of the Fund such amounts in respect of expenses
incurred in connection with his work as such, as the Board
with the prior approval of the Minister may determine.

29. (1) Regulations may prescribe the circumstances
in which a relevant employment shall, in relation to any
claim for industrial benefit in respect of any accident or
prescribed disease, be treated as employment as an
employed person notwithstanding that by reason of a
contravention of or non-compliance with some provision
contained in or having effect under the Immigration Act, or
any enactment passed for the protection of persons in
employment or any class of such persons, the contract
purporting to govern the employment was void or the
person employed was not lawfully employed therein at the
time when or in the place where the accident happened or
the disease developed.

(2) In this section the expression “relevant employ-
ment” means, in relation to an accident, the employment out
of and in the course of which the accident arises and, in
relation to a prescribed disease, the employment to the nature
of which the disease is due.

30. Nothing in section 26, 27 or 29 shall affect the
right of any person to benefit in respect of a disease which
is not a prescribed disease, except that a person shall not be
entitled to benefit in respect of a disease as being an injury
by accident arising out of and in the course of any
employment if at the time of the accident the disease is in
relation to him a prescribed disease by virtue of the
occupation in which he is engaged in that employment.

Payment of
medical officers,
medical referees
and boards.

Accidents and
diseases in
course of illegal
employment.

Ch. 191.

Benefit where
disease is
personal injury
by accident.

CH.350 – 22] NATIONAL INSURANCE





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

31. (1) If it is found that any person by reason of the
non-disclosure or misrepresentation by him of a material
fact (whether the non-disclosure or misrepresentation was
or was not fraudulent) has received any sum by way of
benefit while he was not entitled to that benefit, he shall be
liable to repay the sum so received by him.

(2) Where any person is liable to repay any sum
received by him by way of benefit, that sum may be
recovered, without prejudice to any other remedy, by
means of deductions from any benefit or assistance to
which he thereafter becomes entitled.

32. Every assignment of or charge on benefit and
every agreement to assign or charge benefit shall be void
and on the bankruptcy of a beneficiary the benefit shall not
pass to any trustee or other person acting on behalf of the
creditors.

PART V
ASSISTANCE

33. (1) Subject to the provisions of subsection (2),
assistance to be awarded under this Act shall be of the
following kinds only —

(a) old age non-contributory pension, that is to say,
periodical payments to a person who has
reached the age of sixty-five years and retired
from gainful occupation in such circumstances
as may be prescribed;

(b) invalidity assistance, that is to say, periodical
payments to a person who is rendered
permanently incapable of work otherwise than
as a result of employment injury;

(c) survivor’s assistance, that is to say, periodical
payments made to a survivor in respect of the
death of a person who immediately before his
death was receiving old age non-contributory
pension or invalidity assistance, or in respect of
the death of a person who dies otherwise than as
a result of employment injury;

(d) sickness assistance, that is to say, periodical
payments to a person who is rendered tempora-
rily incapable of work otherwise than as a result
of employment injury.

Repayment of
benefit
improperly
received.

Benefits to be
inalienable.

Description of
assistance and
persons entitled.

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(2) Assistance of the kinds set out in subsection (1)
may be awarded subject to a prescribed test of resources
and only to such persons as may be prescribed who are
within the following classes of persons —

(a) a person who immediately before the date
determined by the Minister under subsection (3)
of this section was in receipt of an old age
pension under the Old Age Pension Act;

(b) a person who immediately before that date was
in receipt of pecuniary assistance from the
Social Welfare Department of the Ministry of
Labour and Welfare either as an invalid
permanently incapable of work or as a survivor
of a deceased person or persons;

(c) an insured person, or, in the case of survivor’s
assistance, the survivor of an insured person,
who on account of insufficient contributions
fails to qualify for benefit;

(d) a person over the age of sixteen years who is
resident in The Bahamas at the date of his claim
for assistance whether an insured person or not,
and who —

(i) is a citizen of The Bahamas or had been
ordinarily resident therein as an employed
or self-employed person for a period of not
less than twelve months without
interruption within the fifteen years
immediately preceding that date; and

(ii) fails to qualify for benefit;
(e) a person who, in the case of survivor’s

assistance, is the survivor of a person who at the
date of his death was a person such as is referred
to in paragraph (d);

(f) a person over the age of sixteen years, whether
an insured person or not, who —

(i) is the dependant of an insured person or of
a person such as is referred to in
subparagraph (i) of paragraph (d) of this
subsection; and

(ii) is permanently incapable of work; and
(iii) fails to qualify for benefit.

51 of 1957.

22 of 1975, s. 3.

22 of 1975, s. 3.

CH.350 – 24] NATIONAL INSURANCE





STATUTE LAW OF THE BAHAMAS LRO 1/2006

(3) Assistance under the provisions of this section
shall be payable out of the Fund from such date as the
Minister with the concurrence of the Minister of Finance
may determine.

34. Assistance payments shall only be payable in
respect of persons who are ordinarily resident in The
Bahamas.

35. (1) Where a person who is in receipt of
assistance under the Act is desirous of leaving The
Bahamas for a period in excess of three months, he shall
advise the Director in writing before leaving The Bahamas.

(2) The Director may in exceptional circumstances
authorise the payments of an assistance to a person who is
absent from The Bahamas in excess of 3 months.

36. Regulations shall provide for —
(a) the rates or amounts of assistance and the

variation of such rates in different or special
circumstances;

(b) the conditions subject to which and the periods
for which assistance may be granted; and

(c) the date as from which assistance may be
provided.

37. Regulations may provide for any of the matters
set out in section 24 as if, except where the context
otherwise requires, references to benefit therein other than
to injury benefit were references to assistance.

38. (1) If it is found that any person by reason of
non-disclosure or misrepresentation by him of a material
fact (whether the non-disclosure or misrepresentation was
or was not fraudulent) has received any sum by way of
assistance while he was not entitled to that assistance, he
shall be liable to repay the sum so received by him.

(2) Where any person is liable to repay any sum
received by him by way of assistance, that sum may be
recovered without prejudice to any other remedy by means
of deductions from any benefit or assistance to which he
thereafter becomes entitled.

Assistance
payments to
persons
ordinarily
resident.
36 of 1998, s. 5.
Absence from
The Bahamas.
36 of 1998, s. 5.

Rates of
assistance.

Regulations with
regard to
payments of
assistance.

Repayment of
assistance
improperly
received.

NATIONAL INSURANCE [CH.350 – 25


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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

39. Every assignment of or charge on assistance and
every agreement to assign or charge assistance shall be
void and on the bankruptcy of the beneficiary the
assistance shall not pass to any trustee or other person
acting on behalf of the creditors.

PART VI
ADMINISTRATION, FINANCE AND LEGAL

PROCEEDINGS
40. (1) The Board shall employ a Director (who

shall be the chief executive officer of the Board) and may
employ such other officers and employees at such
remuneration and on such terms and conditions as it
considers necessary or appropriate for the proper conduct
of its business:

Provided that the Board shall not without the prior
approval of the Minister —

(a) assign to any post a salary, which is above the
highest level of that governed by any industrial
agreement to which the Board is a party;

(b) make an appointment to any post to which a
salary mentioned in paragraph (a) of this proviso
is attached;

(c) make any appointment of a legal adviser to, or
medical officer of, the Board;

(d) terminate the employment of any person who
holds such a post; or

(e) make any provision for the payment of any
pensions or gratuities or other like benefits to
any officers or other employees of the Board by
reference to their service.

(2) Subject to the provisions of this Act, the
Director may delegate to any committee or officer or
employee of the Board any such function as the Director
may determine:

Provided that every delegation under this subsection
shall be revocable by the Director and no delegation shall
prevent the exercise by the Director of any function so
delegated.

Assistance to be
inalienable.

Officers and
employees of the
Board.

36 of 1998, s. 6.

12 of 1974, s. 4.

36 of 1998, s. 6.

CH.350 – 26] NATIONAL INSURANCE





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

41. (1) The Board may designate such officers in its
service as it thinks fit to be inspectors for the purpose of
giving effect to the provisions of this Act.

(2) An inspector shall, for the purposes of the
execution of this Act, have power to do all or any of the
following things, that is to say —

(a) to enter at all reasonable times any premises or
place liable to inspection under this section;

(b) to make such examination and enquiry as may
be necessary for ascertaining whether the
provisions of this Act are being or have been
complied with in any such premises or place;

(c) to examine either alone or in the presence of any
other person as he thinks fit; with respect to any
matters under this Act on which he may
reasonably require information, every person
whom he finds in any such premises or place, or
whom he has reasonable cause to believe to be
or to have been an insured person, and to require
every such person to be so examined;

(d) to take possession of such documents and
records which are, in the opinion of the
Inspector, necessary for the purpose of
ascertaining whether the provisions of this Act
are being or have been complied with in any
such premises or place;

(e) to exercise such other powers as may be
necessary for the administration of this Act.

(3) Subject to subsection (4), the occupier of any
premises or place liable to inspection under this section and
any person who is or has been employing any person, and
the servants and agents of any such occupier or other
person, and any insured person, shall furnish to an
inspector all such information and produce for inspection
all such documents as the inspector may reasonably require
for the purpose of ascertaining whether contributions are or
have been payable, or have been duly paid, by or in respect
of any person, or whether benefit or assistance is or was
payable to or in respect of any person.

(4) Every inspector shall be furnished with a
certificate of his appointment and on applying for
admission to any premises or place for the purposes of this
Act shall, if so required, produce the said certificate.

Designation and
powers of
inspectors.

3 of 1984, s. 8.

3 of 1984, s. 8.

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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

(5) The premises and places liable to inspection
under this section are any premises or places where an
inspector has reasonable grounds for supposing that any
persons are employed except that they do not include any
private dwelling house not used by or by permission of the
occupier for the purposes of a trade or business.

(6) No person shall be required under this section to
answer any questions or to give any evidence tending to
incriminate himself.

42. Every employer and self-employed person shall
at all times keep and maintain in his business premises or
place the following records —

(a) evidence of registration pursuant to section 14;
(b) payroll and other records connected therewith

which would serve to prove the correctness of
the entries on the contributions made; and

(c) the records relating to the payment of such
contributions to the Board.

43. Subject to the provisions of any other enactment,
in any action or other legal proceedings brought against
any officer or employee of the Board in respect of any act
done in pursuance or execution or intended execution of
this Act, the plaintiff shall not recover unless he alleges in
his pleading and proves at the trial that such act was done
either maliciously or without reasonable and probable
cause.

44. (1) For the purposes of this Act, there shall be
established under the control and management of the Board
a fund called “the National Insurance Fund”.

(2) There shall be paid into the Fund —
(a) all contributions;
(b) any grant out of the Consolidated Fund under

subsection (3) of section 45;
(c) all rent, interest on investments or other income

derived from the assets of the Fund;
(d) all sums recovered for the Fund under this Act;
(e) all sums properly accruing to the Fund under

this Act including, without prejudice to the
generality of the foregoing, the repayment of
benefit or assistance; and

Maintenance of
records.
3 of 1984, s. 9.

36 of 1998, s. 7.

36 of 1998, s. 7.

Proceedings
against officers
and employees of
the Board under
this Act.

Establishment of
National
Insurance Fund.

CH.350 – 28] NATIONAL INSURANCE





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

(f) such other sums as may from time to time be
provided by the Legislature for any of the
purposes of this Act or as may from time to time
be received and accepted by the Board on behalf
of the Fund.

(3) There shall be paid or met out of the Fund —
(a) all claims for benefits or assistance;
(b) all refunds of contributions paid in error;
(c) all expenses properly incurred in the administration of

this Act, including disbursements by way of
remuneration, allowances and expenses payable under
sections 10, 28, 40 and 51.

(4) Regulations shall provide for the form and
conduct of the accounts of the Fund and, in particular,
for —

(a) the establishment and maintenance of different
branches of such accounts; and

(b) the establishment and maintenance within the
Fund of different reserves,

for different purposes; and an auditor appointed by the
Minister shall examine and certify every such account.

(5) Any moneys forming part of the Fund may from
time to time be invested by the Board in accordance with
the provisions of the Third Schedule and, subject to those
provisions, of any regulations made pursuant to paragraph
(b) of subsection (4) establishing criteria for the investment
of reserves.

(6) Notwithstanding the provisions of subsection (5)
the Board may from time to time invest any moneys
forming part of the Fund in such manner and in such
investments as the Minister acting after consultation with
the Minister responsible for Finance may direct.

(7) Without prejudice to the provisions of
subsection (6) the Board may, with the approval of the
Minister —

(a) utilise any moneys of the Fund standing to the
credit of the Medical Benefit Branch by way of
investment in or the promotion of the develop-
ment of health infrastructure facilities, including
any facilities ancillary thereto, in The Bahamas
having regard to the needs of the insured
persons;

Third Schedule.

7 of 1981, s. 3.

10 of 1986, s. 2.

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(b) enter into arrangements (including leases) on
such terms as are agreed with persons for the
operation of those health facilities acquired on
ownership or on lease for a period of ninety-nine
years by the Board pursuant to paragraph (a).

45. (1) Any temporary insufficiency in the Fund to
meet the liabilities of the Fund under this Act shall be met
from moneys provided by Parliament.

(2) Any moneys provided by Parliament pursuant to
subsection (1) shall be repaid to the Consolidated Fund out
of the Fund as soon as may be practicable.

(3) There shall be paid annually into the Fund out of
the Consolidated Fund such round sum as the Minister of
Finance may certify as the approximate expenditure for the
year ended on the thirty-first day of December 1971, on the
public assistance services (including administration) —

(a) in respect of non-contributory pensioners under
the Old Age Pension Act6; and

(b) in respect of other persons granted public
assistance administratively.

46. There shall be paid out of the Fund into the
Consolidated Fund at such times and in such manner as the
Minister of Finance may direct, such sums as he, after
consultation with the Minister and the Board, may estimate
to be the amount of the expenses of the Post Office in the
administration of this Act.

47. (1) The Board shall —
(a) after the end of each year prepare a report on its

activities during the last preceding year and shall
furnish such report to the Minister not later than
the thirtieth day of June;

(b) submit to the Minister every account certified by
the auditor pursuant to subsection (4) of section
44, together with the report of the auditor
thereon within one month of such certification;
and

(c) submit annually to the Minister an account of
the securities in which moneys forming part of
the Fund are for the time being invested in
accordance with the Third Schedule.


6 See Fourth Schedule.

Temporary
insufficiency of
Fund.

51 of 1957.

Expenses of Post
Office.

Report and
accounts to be
submitted to
Minister.

Third Schedule.

CH.350 – 30] NATIONAL INSURANCE





STATUTE LAW OF THE BAHAMAS LRO 1/2006

(2) The Minister shall cause a copy of every report
or account submitted to him pursuant to this section to be
laid before both chambers of Parliament.

48. (1) The Board shall, with the assistance of an
actuary approved by the Minister, review the operation of
this Act forthwith upon the expiration of the period ending
on the thirty-first day of December 1977, and of the period
ending on that date in every fifth year thereafter, and on
such review make a report to the Minister on the financial
condition of the Fund and the adequacy or otherwise of
contributions to support benefits and assistance having
regard to the other liabilities of the Fund under this Act:

Provided that the Minister may at any time direct that
the period to be covered by a review and report under this
subsection shall be reduced and that, while the direction is
in force, the making of that review and the consequent
report and subsequent reviews and reports under this
subsection shall be accelerated accordingly.

(2) The Minister shall cause a copy of every report
made to him under this section to be laid before both
chambers of Parliament.

49. (1) Regulations may provide for the determination
by the Board or by a person or tribunal appointed or
constituted in accordance with the regulations of any question
arising under or in connection with this Act including any
claim to benefit or assistance and, subject to the provisions of
the regulations, the decision in accordance therewith on any
such question except a question of law shall be final.

(2) Without prejudice to the generality of subsection
(1), regulations made thereunder may in relation to the
determination of questions in accordance with the
regulations, include provision —

(a) as to the procedure which is to be followed, the
form which is to be used for any document, the
evidence which is to be required and the
circumstances in which any official record or
certificate is to be sufficient or conclusive
evidence;

(b) as to the time to be allowed for making any claim
or appeal, for raising any question with a view to
the review of any decision or for producing any
evidence;

Review of
operation of Act.

Determination of
claims and
questions.

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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

(c) for summoning persons to attend and give
evidence or produce documents and for
authorising the administration of oaths to
witnesses;

(d) as to the representation of one person at any
hearing of a case by another person whether
having professional qualifications or not, and,
except so far as it may be applied by regulations
under this section, the Arbitration Act shall not
apply to any proceedings under those
regulations.

(3) Regulations under subsection (1) may provide
for the reference to the Supreme Court for decision of any
question of law arising in connection with the
determination of any question under the regulations and for
appeals to the Supreme Court from the decision of the
Board or of a person or tribunal on any such question.

(4) Provision shall be made by rules of court made
under section 76 of the Supreme Court Act for regulating
references and appeals to the Supreme Court under this
subsection and for limiting the time within which appeals
may be brought thereunder.

(5) Notwithstanding anything in any enactment, the
decision of the Supreme Court on a reference or appeal
under this subsection shall be final, and on any such
reference or appeal the Court may order the Board to pay
the costs of any other person, whether or not the decision is
in favour of the Board and whether or not the Board
appears on the reference or appeal.

50. (1) Regulations may make provision for matters
arising —

(a) pending the determination under this Act
(whether in the first instance or on appeal or
reference, and whether originally or on review)
of any claim for benefit or assistance or of any
question affecting the right of any person to
benefit or assistance or to the receipt thereof or
of the liability of any person for contributions;
or

(b) out of the revision on appeal or review of any
decision under this Act on any claim or
question.

(2) Without prejudice to the generality of subsection
(1), regulations thereunder may include provision —

Ch. 181.

Ch. 53.

Interim
payments,
arrears and
repayments.

CH.350 – 32] NATIONAL INSURANCE





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

(a) for the suspension of benefit or assistance where
it appears to the Director that there is or may be
a question whether the conditions for receipt
thereof in accordance with an award are or were
fulfilled or whether the award ought to be
reviewed;

(b) as to the date from which any decision on a
review is to have effect or be deemed to have
had effect;

(c) for treating any benefit or assistance paid to any
person under an award or by virtue of any
provision of the regulations which it is
subsequently decided was not payable, as
properly paid or as paid on account of any other
benefit or assistance which it is decided was
payable to him, or for the repayment of any such
benefit or assistance and the recovery thereof by
deduction from other benefit or assistance or
otherwise;

(d) for treating benefit or assistance paid to one
person in respect of another as being a child of
the family, or the wife or husband or an adult
dependant, of the first mentioned person, as
having been properly paid for any period,
notwithstanding that under regulations relating
to benefits or assistance it is not payable for that
period by reason of a subsequent decision
either —

(i) that such other person is himself entitled
to benefit or assistance for that period; or

(ii) that a third person is entitled to benefit or
assistance for that period in respect of such
other person in priority to the first
mentioned person, and for reducing or
withholding accordingly any arrears
payable for that period by virtue of the
subsequent decision.

51. There shall be paid out of the Fund to a person
appointed under regulations made under subsection (1) of
section 49 and to a member of a tribunal constituted in
accordance with such regulations, such remuneration and
allowances, if any, and any such amounts in respect of
expenses incurred in connection with his work as such, as
the Board with the prior approval of the Minister may
determine.

Payment of
persons and
tribunals
appointed or
constituted under
section 49.

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52. (1) Any insured person or any employer who
fails to pay at or within the time prescribed for the purpose,
any contribution which he is liable to pay pursuant to this
Act, shall for each such failure be liable on summary
conviction to a fine not exceeding five hundred dollars.

(2) Any person who wilfully delays or obstructs an
inspector in the exercise of any power under section 41,
shall be liable on summary conviction to a fine not
exceeding five hundred dollars in the case of a first offence
and not exceeding one thousand dollars in the case of a
second or subsequent offence.

(3) Any person who —
(a) refuses or neglects without reasonable cause to

answer any question or to furnish any informa-
tion or to produce any documents when required
so to do under section 41;

(b) fails to keep or maintain the records in accord-
ance with section 42;

(c) fails to register with the Board in accordance
with section 14,

shall be liable on summary conviction to a fine not
exceeding five hundred dollars and if the offence of which
he is convicted is continued after the conviction he shall be
guilty of a further offence and liable in respect thereof to a
fine not exceeding two hundred dollars for each day on
which the offence is so continued.

(4) Any employer who deducts or attempts to
deduct or otherwise recovers or attempts to recover the
whole or any part of the contribution of the employer in
respect of any person from the wages of such person shall
be liable on summary conviction to a fine not exceeding
five hundred dollars.

(5) Any person who —
(a) furnishes information to the Board with respect

to contributions; and
(b) for the purpose of obtaining any benefit or

assistance or other payment under this Act,
whether for himself or some other person, or for
any purpose connected with this Act —

(i) knowingly makes any false statement or
false representation; or

36 of 1998, s. 8.

Offences and
penalties.

36 of 1998, s. 8.

3 of 1984, s. 10.

3 of 1984, s. 10.

36 of 1998, s. 8.

36 of 1998, s. 8.

36 of 1998, s. 8.

36 of 1998, s. 8.

CH.350 – 34] NATIONAL INSURANCE





STATUTE LAW OF THE BAHAMAS LRO 1/2006

(ii) produces or furnishes or causes or
knowingly allows to be produced or
furnished, any document or information
which he knows to be false in a material
particular,

shall be liable on summary conviction to a fine not
exceeding two thousand five hundred dollars or to
imprisonment for a term not exceeding twelve months or
both.

(6) Any employer who —
(a) dismisses an employee;
(b) threatens to dismiss or adversely affect the

employment of a employee; or
(c) alters the position of an employee to his

prejudice, by reason of the circumstances that
the employee —

(i) has co-operated with any officer or inspec-
tor of the Board in furnishing information
required for the administration of this Act;

(ii) has made application for or enquired about
any entitlements or obligations under this
Act pertaining either to the payment of
contributions or the entitlement to a
benefit or assistance payment; or

(iii) has appeared as a witness or has given
evidence in any proceeding under this Act,

shall be liable on summary conviction to a fine not
exceeding one thousand dollars or to imprisonment for a
term not exceeding six months or both.

(7) Notwithstanding anything to the contrary
contained in any other law, the question whether an
offence has been committed under subsection (6) shall —

(a) be decided by the court on a balance of
probabilities; and

(b) require that the burden of proof be placed on the
employer to disprove that the adverse action was
not a consequence of the circumstances referred
to in that subsection.

53. (1) Subject to the provisions of Article 78 of the
Constitution, proceedings for an offence under this Act
shall not be instituted except by or with the consent of the
Board or by an inspector or other officer authorised in that
behalf by special or general directions of the Board.

36 of 1998, s. 8.

36 of 1998, s. 8.

General
provisions as to
prosecutions
under Act.
3 of 1984, s. 11.

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(2) Any such inspector or other officer may,
although not a counsel and attorney, prosecute or conduct
before a court of summary jurisdiction any such
proceedings as aforesaid.

(3) Notwithstanding any provision in any enactment
prescribing the period within which summary proceedings
may be commenced, proceedings for an offence under this
Act may be commenced at any time within the period of
three months from the date on which evidence sufficient, in
the opinion of the Board, to justify a prosecution for the
offence comes to its knowledge or within the period of
twelve months after the commission of the offence,
whichever period last expires; and for the purposes of this
subsection a certificate purporting to be signed on behalf of
the Board as to the date on which such evidence came to
the knowledge of the Board shall be conclusive evidence
thereof.

(4) In any proceedings for an offence under this
Act, the wife or husband of the accused shall be competent
to give evidence, whether for or against the accused:

Provided that the wife or husband shall not be
compellable either to give evidence or in giving evidence
to disclose any communication made to her or him by the
accused during the marriage.

(5) Where an offence under this Act which has been
committed by a body corporate is proved to have been
committed with the consent or connivance of, or to be
attributable to any negligence on the part of, any director,
manager, secretary or other officer of the body corporate,
he, as well as the body corporate, shall be deemed to be
guilty of that offence and shall be liable to be proceeded
against and punished accordingly.

54. (1) In any case where any person has been
convicted of the offence under subsection (1) of section 52
of failing to pay a contribution he shall be liable to pay to
the Fund a sum equal to the amount which he failed to pay.

(2) In any case where any person is convicted of an
offence under subsection (5) of section 52, such person
shall pay to the Fund a sum equal to the amount of the
contributions, benefit or assistance with interest, as
certified by the Director, in respect of which the false
statement or representation was made.

Recovery of
contributions on
prosecutions
under Act.

36 of 1998, s. 9.

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STATUTE LAW OF THE BAHAMAS [Original Service 2001]

(3) On such conviction as is mentioned in subsection
(1) or (2) of this section, if notice of intention to do so has
been served with the summons or warrant, evidence may
be given —

(a) of the failure on the part of the convicted person
to pay at or within the time prescribed for the
purpose on behalf or in respect of the same
insured person other contributions under this Act
during the two years immediately preceding the
date of the offence; and

(b) in the case of any such conviction as is
mentioned in the said subsection (1), of the
failure on the part of the said person so to pay on
behalf or in respect of any other person
employed by him any contributions under this
Act on that date or during those two years,

and, on proof of such failure, the convicted person shall be
liable to pay to the Fund a sum equal to the total of all the
contributions under this Act which he is so proved to have
failed to pay and which remain unpaid at the date of the
conviction.

(4) Where the person charged with such an offence
as is mentioned in subsection (1) or (2) of this section is
convicted of that offence in his absence pursuant to
sections 115 and 196 of the Criminal Procedure Code Act,
then if —

(a) it is proved to the satisfaction of the court, on
oath or in the prescribed manner, that such a
notice as is mentioned in subsection (3) of this
section has been duly served specifying the
other contributions in respect of which the
prosecutor intends to give evidence; and

(b) the clerk of the court has received a statement in
writing purporting to be made by the accused or
by a counsel and attorney acting on his behalf to
the effect that if the accused is convicted in his
absence of the offence charged he desires to
admit failing to pay the other contributions so
specified or any of them,

the said subsection (3) shall have effect as if the evidence
had been given and the failure so admitted had been
proved, and the court shall proceed accordingly.

Ch. 91.

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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

(5) Where any person is charged with any such
offence as is mentioned in subsection (1) or (2) and a
probation order is made under section 124 of the Penal
Code, the foregoing provisions of this section shall apply
as if the making of the order were a conviction.

(6) Any sum ordered to be paid to the Fund under
this section shall be recoverable as a penalty.

(7) Any sum paid by an employer under the
provisions of this section shall be treated as a payment in
satisfaction of the unpaid contributions, and the insured
person’s portion of those contributions shall not be
recoverable by the employer from the insured person.

(8) If an employer, being a body corporate, fails to
pay to the Fund any sum which the employer has been
ordered to pay under this section, such sum or such part
thereof as remains unpaid shall be a debt due to the Fund
jointly and severally from any directors of the body
corporate who knew or could reasonably be expected to
have known of the failure to pay the contribution or
contributions in question.

(9) Nothing in this section shall be construed as
preventing the Board from recovering any sums due to the
Fund by means of civil proceedings.

55. (1) All sums due to the Fund by way of
contribution, unless regulations otherwise provide, shall
bear interest compounded annually at prime rate per
annum or such other rate and as from such date as may be
prescribed, and shall be recovered as debts due to the Fund
and, without prejudice to any other remedy, may be
recovered as a civil debt on behalf of the Fund up to fifty
thousand dollars, summarily.

(2) Proceedings for summary recovery of any sum
due to the Fund may, notwithstanding anything in any
enactment to the contrary, be brought at any time within
six years from the time when the matter complained of
arose.

(3) Proceedings for the summary recovery as a civil
debt of any sum due to the Fund may be instituted by an
inspector or other officer authorised in that behalf by
special or general directions of the Board, and any such
inspector or officer may, although not a counsel and
attorney, conduct such proceedings.

Ch. 84.

Civil proceedings
to recover sums
due to the Fund.
36 of 1998, s. 10.

36 of 1998, s. 10.

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STATUTE LAW OF THE BAHAMAS [Original Service 2001]

56. (1) Where an employer has failed or neglected —
(a) to pay any contributions which under this Act he

is liable to pay in respect of or on behalf of any
insured person in his employment; or

(b) to comply, in relation to any such person, with
the requirements of this Act relating to the
payment and collection of contributions,

and by reason thereof that person or any other person to
whom benefit or assistance under this Act may have been
payable has lost in whole or in part the benefit or assistance
to which he would have been entitled, that person or that
other person, as the case may be, shall be entitled to
recover summarily in a magistrate’s court from the
employer as a civil debt a sum equal to the amount of the
benefit or assistance so lost, irrespective of the amount.

(2) Proceedings may be taken under this section
notwithstanding that proceedings have been taken under
any other section of this Act in respect of the same failure
or neglect.

(3) Proceedings under this section may, notwithstand-
ing any enactment to the contrary, be brought at any time
within three years after the date on which the employed
person but for the failure or neglect of the employer would
have been entitled to receive the benefit or assistance lost.

PART VII
MISCELLANEOUS

57. (1) This Act shall apply to persons employed by
or under the Crown in right of the Government of The
Bahamas in like manner as if the Crown were a private
person, with such modifications as may be made therein by
regulations for the purpose of adapting the provisions of
this Act to the case of such persons:

Provided that regulations may provide that any such
person or any class of such persons shall be exempted from
the operation of this Act.

(2) Nothing in this Act shall operate to require any
person to pay any contribution under this Act if such
person is entitled to exemption from payment thereof —

(a) under any enactment; or

Proceedings
against employer
for benefit lost by
employer’s
default.

Application of
Act to certain
categories of
persons.

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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

(b) by virtue of any provision in any agreement
entered into by or on behalf of the Government
under authority especially enacted for the
purposes of that agreement by Parliament.

(3) Notwithstanding anything contained in
subsection (2), any person —

(a) falling within that subsection on the appointed
day; or

(b) who after the appointed day becomes entitled to
claim exemption as mentioned in that
subsection,

may by a declaration in the prescribed form waive that
exemption for the purposes of this Act.

(4) Where a person makes a declaration under
subsection (3), the provisions of this Act shall apply to him
mutatis mutandis, and he shall accordingly be liable to pay
contributions under this Act, with effect from the relevant
day.

(5) In subsection (4) the expression “relevant day”
means —

(a) in relation to a person referred to in paragraph
(a) of subsection (3), the appointed day;

(b) in relation to a person referred to in paragraph
(b) of the said subsection (3), the day on which
he becomes entitled to claim the exemption
referred to in that paragraph.

58. (1) Without prejudice to the generality of any
other power to make regulations, the Minister may make
regulations modifying in such manner as he thinks proper
the provisions of this Act in their application in relation to
persons who are or have been employed on board any ship,
vessel or aircraft.

(2) Without prejudice to the generality of subsection
(1), regulations made thereunder may in particular
provide —

(a) for the classification under this Act of persons
who are or have been employed on or after the
appointed day or the declared day on board
ships, vessels or aircraft;

(b) for excepting from insurance under this Act or
from liability to pay contributions as employed
persons any persons employed as aforesaid who
neither are domiciled nor have a place of
residence in The Bahamas;

Persons
employed on
board ships,
vessels or
aircraft.

CH.350 – 40] NATIONAL INSURANCE





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

(c) for the taking of evidence for the purpose of any
claim to benefit or assistance in any place
outside The Bahamas;

(d) for enabling persons employed on board ships,
vessels or aircraft to authorise the payment of
the whole or any part of any benefit or
assistance to which they are or may become
entitled to such of their dependants as may be
prescribed;

(e) for the payment of industrial benefit to or in
respect of mariners and airmen in respect of
accidents happening and prescribed diseases
developed while they are outside The Bahamas;

(f) for treating as accidents arising out of and in the
course of the employment of mariners or airmen,
accidents happening while they are proceeding
to or from their ship, vessel or aircraft or in any
other prescribed circumstances; and

(g) for withholding any benefit or assistance that
may be payable to a mariner for any period
during which the owner of his ship or vessel is
under an obligation to pay him wages.

59. (1) Without prejudice to the generality of any
other power to make regulations, the Minister may, subject
to subsection (2), make regulations modifying in such
manner as he thinks proper the provisions of this Act in
their application in relation to persons who are or have
been outside The Bahamas while insured under this Act.

(2) Regulations under this section shall provide that
where any insured person is throughout any contribution
period outside The Bahamas and is not in that period an
employed person he shall not be liable to pay any
contribution as an insured person for that period.

60. (1) For the purpose of giving effect to any
agreement with the government of any other part of the
Commonwealth or the government of any foreign country,
being an agreement which provides for reciprocity as
respects the making of social provision of a kind afforded
by Parts IV and V, it shall be lawful for the Minister, by
order, to make provision for modifying or adapting this Act
in its application to cases affected by the agreement.

(2) The modifications of this Act which may be
made by virtue of subsection (1) shall include provision —

Insured persons
outside The
Bahamas.

Reciprocal
agreements with
other parts of the
Commonwealth
or with foreign
countries.

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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

(a) for securing that acts, omissions and events
having any effect for the purposes of the law of
the country in respect of which the agreement is
made shall have a corresponding effect for the
purposes of this Act (but not so far as to confer a
right to double benefit or assistance);

(b) for determining in cases where rights accrue
both under this Act and under the law of the said
country which of these rights shall be available
to the person concerned;

(c) for making provision as to administration and
enforcement contained in this Act applicable
also for the law of the said country;

(d) for making any necessary financial adjustments
by payments into or out of the Fund.

61. Stamp duty shall not be chargeable upon any
draft or order or receipt in respect of benefit or assistance
or upon any receipt given in respect of any other payment
out of the Fund pursuant to subsection (3) of section 44 or
upon any receipt given by an officer of the Board for or in
respect of any sum payable into the Fund.

62. (1) The Minister may make regulations required
by this Act to be made or for the purpose of modifying or
affecting the operation of any provision of this Act, or as
the Minister may consider necessary or desirable generally
for the better administration of this Act.

(2) Without prejudice to the generality of subsection
(1), the Minister may by such regulations —

(a) prescribe any matter which may be or is required
to be prescribed under the provisions of this Act;

(b) require any employer —
(i) to submit returns of persons employed by

him at such intervals and in such manner
as may be prescribed;

(ii) to take reasonable steps to investigate the
circumstances of every accident or disease
of which notice is given to him;

(iii) to give the Board such notices or returns
as may be thereby required of any accident
or disease whether fatal or not which has
occurred in his place of employment;

Exemption from
stamp duty.

Power to make
regulations, etc.

CH.350 – 42] NATIONAL INSURANCE





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

(c) except such categories of insured persons as
may be specified therein from liability to pay
contributions for such periods as may be
prescribed;

(d) provide for determining the circumstances in
which a person is or is not to be deemed for the
purposes of this Act to be a dependant of
another person;

(e) provide for different provisions of any
regulations to come into operation on different
days.

(3) Regulations may provide for the recovery on
summary conviction of monetary penalties in respect of
any offence under this Act being a contravention of or
failure to comply with regulations, so, however, that such
penalties shall not exceed one hundred dollars for each
offence or, where the offence consists of continuing any
such contravention or failure after conviction thereof, one
hundred dollars together with a further one hundred dollars
for each day on which it is so continued.

(4) Any power conferred by this Act to make
regulations or orders may be exercised —

(a) either in relation to all cases to which the power
extends or in relation to all such cases subject to
specified exceptions or in relation to any
specified cases or classes of case; and

(b) so as to make, as respects the cases in relation to
which it is exercised —

(i) the full provision to which the power
extends or any less provision (whether by
way of exception or otherwise);

(ii) the same provision for all cases in relation
to which the power is exercised or
different provision for different cases or
classes of case or different provision as
respects the same case or class of case for
different purposes of this Act;

(iii) any such provision either unconditionally
or subject to any specified condition.

(5) Without prejudice to any specific provision in this
Act, any regulations or orders may contain such incidental or
supplementary provisions as appear to the Minister to be
expedient for the purposes of those regulations or
orders.

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63. (1) The provisions of sections 31 and 32 of the
Interpretation and General Clauses Act shall not apply in
relation to any regulations or orders made by the Minister
under this Act, but instead all such regulations or orders
shall be subject to affirmative resolution of both chambers
of Parliament.

(2) In subsection (1) the expression “subject to
affirmative resolution of both chambers of Parliament” in
relation to regulations or orders means that any such
regulations or orders are not to come into operation unless
and until approved by a resolution of each of those
chambers.

64. (1) On and after the declared day, in any action
for damages for personal injuries brought by an employed
person against his employer (including any such action
arising out of a contract) there shall in assessing such
damages be taken into account, against any loss of wages
or profits which has accrued or probably will accrue to the
employed person from the injuries, one-half of the value of
any rights which have accrued or probably will accrue to
him therefrom in respect of injury benefit or disablement
benefit for the five years beginning with the time when the
cause of action accrued; but this subsection shall not be
taken as requiring both the gross amount of the damages
before taking into account such rights and the net amount
after taking them into account to be found separately.

(2) The reference in subsection (1) to assessing the
damages for personal injuries shall, in cases where
damages otherwise recoverable are subject to reduction
under section 3 of the Contributory Negligence Act, or are
limited by or under any other enactment or by contract, be
taken as referring to the total damages which would have
been recoverable apart from the reduction or limitation.

(3) In assessing damages in respect of the death of a
person in any action under the Fatal Accidents Act, or the
Carriage by Air Act, 1961 and the Carriage by Air
(Supplementary Provisions) Act, 1962, of the United
Kingdom as extended to The Bahamas there shall not be
taken into account any right to death benefit under this Act
resulting from the death of such person.

(4) For the purposes of this section —
(a) the expression “personal injury” includes any

disease and any impairment of the physical or



Ch. 2.

Regulations and
orders to be
approved.

Measure of
damages where
industrial benefit
applies.





Ch. 75.

Ch. 71;
9 & 10 Eliz. 2 c
27.; 10 & 11 Eliz.
2 c. 43.

CH.350 – 44] NATIONAL INSURANCE





STATUTE LAW OF THE BAHAMAS LRO 1/2006

mental condition of a person, and the expression
“injured” shall be construed accordingly;

(b) any payment on account of disablement benefit
shall be treated as benefit for the period taken
into account by the assessment of the extent of
the disablement in respect of which it is payable.



FIRST SCHEDULE (Section 2)

EMPLOYMENT AS AN EMPLOYED PERSON
1. Employment in The Bahamas under any contract of

service.
2. Employment whether within or without The Bahamas of

a person domiciled or having a place of residence therein as
master or a member of the crew of any ship or vessel, or as pilot,
commander, navigator or a member of the crew of any aircraft,
being a ship, vessel or aircraft of which the owner (or the
managing owner, if there is more than one owner) or the
manager, resides or has his principal place of business in The
Bahamas, or in any other capacity on board such a ship, vessel
or aircraft:

Provided that the employment in that other capacity is for
the purposes of the ship, vessel or aircraft, or of the crew
thereof, or of any passenger or cargo or mails carried thereby.

3. Employment in plying for hire with any vehicle, the use
of which is obtained from the owner thereof under a contract of
bailment (other than a hire purchase agreement), the owner of
the vehicle being regarded as the employer.

4. Employment outside The Bahamas of a person
domiciled or having a place of residence therein —
(a) as a member of the diplomatic or consular service of The

Bahamas;
(b) as a domestic worker employed by a person specified in

subparagraph (a) of this paragraph.
5. Every employment, service or occupation prescribed by the

Minister.
3 of 1984, s. 14.

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SECOND SCHEDULE (Section 3(2))

CONSTITUTION OF NATIONAL INSURANCE BOARD.
1. The Board shall consist of eleven members, of whom —

(a) five shall be persons appointed by the Minister in his
discretion;

(b) three shall be persons appointed by the Minister in
accordance with paragraph 2 of this Schedule to represent
employers; and

(c) the remaining three shall be persons appointed by the
Minister in accordance with paragraph 3 of this Schedule to
represent insured persons.
2. The members representing employers shall be appointed

only after consultation with a confederation, being, in the
opinion of the Minister, a confederation representative of
employers and associations of employers generally or, in the
absence of such a confederation, only after consultation with
such employers and associations of employers as, in the opinion
of the Minister, are so representative.

3. The members representing insured persons shall be
appointed only after consultation with an association of
registered trade unions, being an association, in the opinion of
the Minister, representative of insured persons generally or, in
the absence of such an association, only after consultation with
such registered trade unions as, in the opinion of the Minister,
are so representative.

4. The Director shall be entitled to attend any meeting of
the Board, to take part in discussion of any matter other than
such as may concern him personally, but shall not be entitled to
vote.

5. A member shall, subject to the provisions of this
Schedule, hold office for such period not exceeding three years
as the Minister may direct in the instrument appointing him.

6. The Minister may grant leave of absence to any member.
7. A member may at any time resign his office as such by

instrument in writing addressed to the chairman, who shall
forthwith cause the same to be forwarded to the Minister, and
upon the date of the receipt by the chairman of such instrument
such member shall cease to be a member.

8. The Minister shall appoint two members to be
respectively chairman and deputy chairman.

9. Subject to the provisions of this Schedule, the chairman
and the deputy chairman shall hold and vacate office as such in
accordance with the terms of the instrument by which they were
respectively appointed.

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STATUTE LAW OF THE BAHAMAS LRO 1/2006

10. Where the chairman or the deputy chairman or any
other member is absent or unable to act, the Minister may
appoint any person to act temporarily in his place.

11. The chairman or the deputy chairman may at any time
resign his office as such by instrument in writing addressed to
the Minister, and such resignation shall take effect upon the date
of the receipt of such instrument by the Minister.

12. If the chairman or the deputy chairman ceases to be a
member, he shall also cease to be chairman or deputy chairman,
as the case may be.

13. The Minister may by instrument in writing at any time
revoke the appointment of the chairman, deputy chairman or any
other member if he thinks it desirable or expedient so to do.

14. A member who ceases to be a member or ceases to be
chairman or deputy chairman shall be eligible for re-
appointment.

15. The appointment, removal, death or resignation of a
chairman, deputy chairman or member shall be notified in the
Gazette.

THIRD SCHEDULE (Section 44(5))

POWERS OF BOARD TO INVEST
1. In this Schedule, unless the context otherwise requires —
“debenture” includes debenture stock and bonds, whether

constituting a charge on assets or not, and loan stock or notes;
“market price” of any securities which are quoted both at

prices at which sellers are willing to sell and buyers are willing
to buy means the price which is mid-way between those prices;
and “market value” and “value”, in relation to securities, shall be
construed accordingly;

“paragraph” means a paragraph of this Schedule;
“recognised stock exchange” means any body of person

conducting a market for securities declared by an order of the
Minister for the time being in force to be a recognised stock
exchange for the purposes of this Schedule;

“securities” has the same meaning as in the Securities
Industry Act;

“share” includes stock.
2. The Board may invest any moneys forming part of the

National Insurance Fund, whether in a state of investment or not,
either temporarily or permanently in accordance with the
provisions of this Schedule:

Provided that the Board shall not invest in property or
securities outside The Bahamas without the general or special

Interpretation.

Ch. 363.

Investment of
property.

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LRO 1/2006 STATUTE LAW OF THE BAHAMAS

directions of the Minister after he has obtained the concurrence
of the Minister of Finance.

3. Subject to paragraph 2, the Board shall have power to
invest, on terms not less favourable than are available to other
investors generally, in any securities which are investments
authorised by the Trustee Act for the investment of trust funds.

4. Subject to paragraph 2, the Board shall have power to
invest in property or securities other than those mentioned in
paragraph 3:

Provided that such securities are not —
(a) securities in which the holder can be required to accept

repayment of the principal, or the payment of any interest,
otherwise than in the currency of The Bahamas or any
other currency declared by the Minister by order to be an
internationally recognised reserve currency for the
purposes of this subparagraph; or

(b) securities the price of which is not quoted on a recognised
stock exchange; or

(c) shares or debenture stock not fully paid up (except shares
or debenture stock which by the terms of issue are required
to be fully paid up within, nine months of the date of
issue); or

(d) shares or debentures of any company of which the total
issued and paid up share capital is less than one million
dollars; or

(e) share or debentures of any company which has not in each
of the five years immediately preceding the year in which
the investment is made paid a dividend on all the shares
issued by the company, excluding any shares issued after
the dividend was declared and any shares which by their
terms of issue did not rank for dividend for that year; and
for the purposes of this subparagraph a company formed —
(i) to take over the business of another company or other

companies; or
(ii) to acquire the securities of, or control of, another

company or companies,
or for either of those purposes and for other purposes, shall
be deemed to have paid a dividend as mentioned in this
subparagraph in any year in which such a dividend has
been paid by the other company or all the other companies,
as the case may be; or

(f) further securities in any one company which, at the market
price ruling at the date of the proposed increase in the
investment, would bring the total investment in that
company to more than five per centum of the total

Investment in
trustee securities.

Ch. 176.

Investment in
other securities.

CH.350 – 48] NATIONAL INSURANCE





STATUTE LAW OF THE BAHAMAS LRO 1/2006

investments of the Fund as valued at the thirty-first day of
December immediately preceding the date of the proposed
investment.
And further provided that such property and securities —

(g) do not bring the investments in property and securities
authorised by this paragraph in excess of such proportion of
the total investments of the Fund as may from time to time
be fixed by the Minister with the concurrence of the
Minister of Finance; and for the purposes of this
subparagraph —
“total investments of the Fund” means the total investments
thereof as valued on the thirty-first day of December
immediately preceding the date of the proposed investment;
and
“investments in property and securities authorised by this
paragraph” means investments in property and securities
authorised as aforesaid (as valued on the thirty-first day of
December immediately preceding the date of the proposed
investment) less any such investment sold since that date
(as valued at its price of sale) plus any such investment
made since that date (as valued at its purchase price)
including the investment proposed to be made.

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