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Long Term Insurance Act, 1998 (Act No. 52 of 1998)

Regulations

Regulations under the Long-term Insurance Act, 1998

Part 3 : Remuneration

Part 3A : Limitation on Remuneration for Rendering Services as Intermediary - Policies other than Policies to which Part B Applies

Annexure 1

Table 1 : Registered insurers

 

TABLE 1 : REGISTERED INSURERS

 

Item

Kind of policy or  benefit component

Maximum percentage

Notes

 

 

Single premium policy

Multiple premium policy

Up-front payment reg 3.3(1)(b)(i) applicable

Secondary commission: reg 3.2(4)(b) applicable

 

 

 

Basic percentage

Limit per proviso to reg 3.4(1)(b)

 

Column 2

Column 3

Column 4

Column 5

Column 6

Column 7

 

 

%

%

%

 

 

1

Individual policy, not elsewhere specified




1.1

not immediate annuity

3.0

3.25

85.0

yes*

yes*

1.2

immediate annuity

 

 

 

 

 

1.2.1

not compulsory

1.5

not applicable

not applicable

no

no

1.2.2

compulsory, not tied

1.5

not applicable

not applicable

no

no

1.2.3

compulsory, tied

Nil

not applicable

not applicable

no

no

2

Fund member policy

 

 

 

 

 

2.1

funding a retirement annuity fund

 

 

 

 

 

2.1.1

upon entry, not a transfer

2.5

3.0

75.0

yes*

yes*

2.1.2

upon entry, a transfer from a fund other than retirement annuity fund to

 

 

 

 

 

2.1.2.1

a fund chosen by the member

1.5

not applicable

not applicable

no

no

2.1.2.2

a fund not chosen by the member

nil

not applicable

not applicable

no

no

2.1.3

upon entry, a transfer from another retirement annuity fund

nil

not applicable

not applicable

no

no

2.2

not funding a retirement annuity fund

 

 

 

 

 

2.2.1

upon entry, not a transfer

2.5

3.0

75.0

yes*

yes*

2.2.2

upon entry, a transfer from another fund

1.5

not applicable

not applicable

no

no

3

Life policy

 

 

 

 

 

3.1

Other than term cover only

 

 

 

 

 

3.1.1

incorporated in a group scheme

 

 

 

 

 

3.1.1.1

which is a credit scheme

7.5

7.5

not applicable

no

no

3.1.1.2

which is not a credit scheme

Scale A

Scale A

not applicable

no

no

3.2

Term cover only

 

 

 

 

 

3.2.1

individual

7.5

3.25

85.0

yes

yes

3.2.2

incorporated in a group scheme

 

 

 

 

 

3.2.2.1

which is a credit scheme

7.5

7.5

not applicable

no

no

3.2.2.2

which is not a credit scheme

Scale A

Scale A

not applicable

no

no

4

Fund Policy

Scale A

Scale A

not applicable

no

no

5

Health policy and disability policy

 

 

 

 

 

5.1

Other than term cover only

 

 

 

 

 

5.1.1

individual

3.0

3.25

85.0

yes

yes

5.1.2

incorporated in a group scheme

 

 

 

 

 

5.1.2.1

which is a credit scheme

7.5

7.5

not applicable

no

no

5.1.2.2

which is not a credit scheme

Scale A

Scale A

not applicable

no

no

5.2.

Term cover only

 

 

 

 

 

5.2.1

Individual

7.5

3.25

nil

no

no

5.2.2

incorporated in a group scheme

 

 

 

 

 

5.2.2.1

which is a credit scheme

7.5

7.5

not applicable

no

no

5.2.2.2

which is not a credit scheme

Scale A

Scale A

not applicable

no

no

6

Sinking fund policy

3.0

3.0

nil

no

no

7

Assistance policy

-

-

-

no

no

Notes to Table 1 of Annexure 1:

• An asterisk (*) denotes "excluding a replacement policy"
• A dash (-) denotes that there is no limit.
• "nil" denotes that no commission may be paid.
• A policy, other than one that provides an immediate annuity, that is a fund member policy or a fund policy falls under item 2 or 4, as the case may be, irrespective whether it can fall also under another item. A policy that provides an immediate annuity that is a fund member policy of a fund policy attracts the commission referred to in item 1.2.
• Item 2.1.2.1 applies with effect from 1 March 2007.
• A health policy under item 5 refers to a health policy other than a contract identified as a health policy in category 1 and 3 in the table under regulation 7.2(1) of the Regulations.

 

[Last note to "Notes to Annexure 1" inserted by regulation 1(c) of Notice No. 1582 of 2016]

 

[Annexure 1(Table 1) substituted by regulation 5(o)(i) of Notice No. 1015, GG 41942, dated 28 September 2018]