Valuation of assets and liabilities
10.—(1)  In any document which a Protection and Indemnity Club is required to prepare in accordance with these Regulations or the Insurance (Accounts and Statements) Regulations 2004 (G.N. No. S 494/2004), the value or amount given for an asset or a liability of the Protection and Indemnity Club shall be the value or amount of that asset or liability, as the case may be, as determined in accordance with paragraph (3), any applicable regulation under the Insurance (Valuation and Capital) Regulations 2004 (G.N. No. S 498/2004) and any direction issued under the Act.
(2)  A Protection and Indemnity Club shall be exempt from regulation 19(1) of the Insurance (Valuation and Capital) Regulations 2004.
(3)  A Protection and Indemnity Club shall calculate the liabilities in respect of policies of an insurance fund established and maintained under section 17 of the Act for the general business of the Protection and Indemnity Club as the sum of —
(a)premium liabilities, which shall be an amount of not less than —
(i)the unearned premium reserves of the fund calculated as the aggregate of unearned premium reserves for each policy of the fund determined in the manner provided in regulation 19(5) of the Insurance (Valuation and Capital) Regulations 2004; or
(ii)the unexpired risk reserves, calculated as the sum of —
(A)the value of the expected future payments arising from future events insured under policies in force as at the valuation date, including any expense expected to be incurred in administering the policies and settling relevant claims; and
(B)any provision for any adverse deviation from the expected experience,
whichever is the higher; and
(b)claim liabilities, which shall be an amount not less than the sum of —
(i)the value of the expected future payments in relation to all claims incurred prior to the valuation date (other than payments which have fallen due for payment on or before the valuation date), whether or not they have been reported to the insurer, including any expense expected to be incurred in settling those claims; and
(ii)any provision for any adverse deviation from the expected experience.
(4)  Any reference to regulation 19(1), (1)(a)(ii) or (1)(b) in regulation 19(2) and (4) of the Insurance (Valuation and Capital) Regulations 2004 (G.N. No. S 498/2004), in relation to any Protection and Indemnity Club, shall be construed as a reference to paragraph (3), (3)(a)(ii) or (3)(b), respectively.