(1) An insurer shall ensure that its capital is maintained m an amount which is not less than

(a) The minimum capital applicable to the insurer as stated in the second Schedule, or

(b) The amount that the commission may by notice direct under subsection(2)

(2) Where having regard to the nature and extent of the insurance business Carried on by the insurer the Commission considers it appropriate, the commission may by notice direct an insurer to increase its capital to an amount greater than the c prescribed minimum capital applicable tome-insurer.

(3) A direction issued under subsection (2) shall specify a reasonable time period for compliance with the direction

(4) Where the capital of an insurer falls below the amount that it is required To maintain under subsection(l),it shall immediately notify the Commissioner

(5) An insurer is liable to pay to the Commission the pecuniary penalty Stated in the First Schedule, where

(a) that it is required to maintain, or

(b) it does not inform the Commissioner immediately of the fall in its capital.