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TURKS AND CAICOS ISLANDS NATIONAL INSURANCE BOARD
Notes to Financial Statements, continued Year ended March 31, 2014
21. Capital management
Under the Regulations NIB is required to maintain the following reserves:
(a) The minimum level of the Long-term Benefit Reserve shall be equivalent to the expenditure for benefits under the Long-term Benefit Branch during the three previous financial years.
(b) The minimum level of the Short-term Benefit Reserve shall be equivalent to one- fourth of the expenditure for benefits under the Short-term Benefit Branch during the two previous financial years.
(c) An Employment Injury Benefit Reserve shall be constituted to finance injury benefit, disablement grant, death grant and medical care by transferring thereto annually as much of the excess of income over expenses of the Employment Injury Benefit Branch as is needed to maintain the level of the Employment Injury Benefit Reserve at one-half of the amount paid for the said benefits in the two previous financial years.
The Employment Injury Benefit Reserve at March 31, 2014 and 2013 was determined as follows:
Injury benefit Disablement grant Medical care Death grant
Injury benefit Disablement grant Death grant Medical care
US$ US$
US$
US$
Paid benefits 2014 2013
44,976 8,547,043 – 12,476 – 589 – –
44,976 8,560,108
Paid benefits 2013 2012
8,547,043 110,218 12,476 27,962 589 984 – 2,000
8,560,108 141,164
Required reserve at March 31, 2014
4,296,010 6,238 294 –
4,302,542
Required reserve at March 31, 2013
4,328,631 20,219 786 1,000
4,350,636
The US$340,058 expense for medical care costs (note 12) which was recognised during the year ended March 31, 2014 has not been included in the Employment Injury Benefit Reserve calculation as it had not been paid at March 31, 2014.
146| The National Insurance Board of The Turks and Caicos Islands
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