| (1) |
Remuneration for rendering services as intermediary may be paid by or on behalf of an insurer, and received by an independent intermediary— |
| (a) |
only in accordance with this Part; |
| (b) |
only after the policy has started; and |
| (c) |
only as commission in monetary form. |
| (a) |
No remuneration or consideration shall, directly or indirectly, be provided to, or accepted by or on behalf of, a representative for rendering services as intermediary otherwise than in accordance with the principle of "Equivalence of Reward", in terms whereof the remuneration paid, whether in cash or in kind, must substantially be in accordance with this Part. |
| (b) |
The Authority may for purposes of paragraph (a) by notice on the official website determine that particular forms of remuneration or consideration, whether in cash or in kind, comply or do not comply with the principle of "Equivalence of Reward". |
[Regulation 3.11(2) substituted by regulation 4(z) of Notice No. 1437 of 2017]
| (3) |
The total commission per policy may not exceed the maximum prescribed by this Part, irrespective whether more than one independent intermediary or representative renders services in respect of that policy. |
| (4) |
If a policy has two or more components, each component must for the purposes of this Part, and where applicable, for the purposes of Part 3A, be dealt with as if it were a separate policy. |
| (5) |
If a policy (that does not have two or more components) or a component provides more than one type of policy benefit, and one or more of these benefits is a benefit other than a risk benefit, the maximum commission in respect of that policy or component must be determined in accordance with this Part. |
| (6) |
Any agreement, scheme or arrangement to offer, provide, accept, pay, or receive remuneration, otherwise than in accordance with this Part, is void. |
Special Investigating Units and Special Tribunals Act, 1996
