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Table of Contents
Short-Term Insurance Act, 1998 (Act No. 53 of 1998)
Notice No. 1191 of 1998
Act
1. Definitions
1A. Relationship between Act and Financial Sector Regulation Act
1B. Regulatory instruments
Part I : Administration of Act
2. Exercise of powers and performance of duties by Authority
3. General provisions concerning Registrar
4. Special provisions concerning Registrar and his or her powers
5. [Repealed] Annual report
6. [Repealed] Advisory Committee on Short-term Insurance
Part II : Registration of short-term insurers
7. [Repealed] Registration required in order to carry on short-term insurance business
8. Prohibition on performance of certain acts, by certain persons
9. [Repealed] Application for registration
10. [Repealed] Conditions of registration
11. [Repealed] Variation of registration conditions
12. [Repealed] Registrar may under certain circumstances prohibit short-term insurers from carrying on business
13. [Repealed] Termination of registration
14. [Repealed] Deregistration of short-term insurers as companies
[Repealed] Part III : Business and administration of short-term insurers
15. [Repealed] Limitation on business
15A. [Repealed] Reinsurers carrying on reinsurance business only, authorised to enter into certain short-term policies directly
16. [Repealed] Head office and public officer
17. [Repealed] Financial year and name
18. [Repealed] Notification of certain appointments, terminations and resignations
19. [Repealed] Auditor
19A. [Repealed] Statutory actuary
20. [Repealed] Appointment of auditor or statutory actuary by Registrar
21. [Repealed] Removal of appointees who are not fit and proper
22. [Repealed] Audit committee
23. [Repealed] Preference shares, debentures, share capital and share warrants
24. [Repealed] Registration of shares in name of nominee
25. [Repealed] Limitation on control and certain shareholding or other interest in short-term insurers
26. [Repealed] Furnishing of information concerning shareholders
27. [Repealed] Effect of registration of shares contrary to Act
Part IV : Returns to Authority
28. [Repealed] Maintenance of financially sound condition
29. [Repealed] Assets
30. [Repealed] Kinds and spread of assets
31. [Repealed] Deeming provisions concerning assets
32. [Repealed] Liabilities
33. [Repealed] Prohibitions concerning assets and certain liabilities
34. [Repealed] Failure to maintain financially sound condition
35. Returns to Registrar
Part V : Compromise, arrangement, amalgamation and transfer
36. [Repealed] Approval of Registrar required for compromise, arrangement, amalgamation or transfer
37. [Repealed] Application to Registrar
38. [Repealed] Conditions of approval
39. [Repealed] Approved transaction, and certain exemptions
Part VI : Business rescue and winding-up of short-term insurers
40. [Repealed] Business rescue
41. [Repealed] Winding-up
42. [Repealed] Voluntary winding-up
Part VII : Business practice, policies and policyholder protection
Business practice
43. Free choice in certain circumstances
44. Prohibition on inducements
45. Collection of premiums by intermediaries
46. Receipt for premium paid in cash
47. Copy of policy and inspection of policy records
48. Limitation of remuneration
48A. Binder agreements
49. [Repealed] Undesirable business practice
Policies
50. Limitation on policy benefits in the event of death of unborn or of certain minors
51. Voidness of certain provisions of agreements relating to short-term policies
52. Short-term policies entered into by certain minors
53. Misrepresentation and failure to disclose material information
54. Validity of contracts
Policyholder protection
55. Protection of policyholders
Part VIII : Provisions relating to Lloyd’s
56. General
57. Appointment of Lloyd's representative
58. Returns to Registrar
59. Claims against Lloyd's underwriters
60. Security to be furnished by or on behalf of Lloyd's underwriters
61. Payment of certain claims against Lloyd's underwriters
62. Imposition of prohibition on activities of Lloyd's underwriters
63. Application of other provisions of Act to Lloyd's
Part IX : Offences and penalties
64. Offences by persons other than short-term insurers
65. [Repealed] Offences by short-term insurers
66. Penalty for failure to furnish Registrar with returns etc
Part X : Transitional and general provisions
Transitional provisions
67. [Repealed] Continued registration of existing insurers
68. [Repealed] Certain existing insurers to cease long-term insurance business or to separate it from short-term insurance business
General provisions
69. [Repealed] Special provisions concerning short-term insurers that are not public companies
70. Regulations
71. Savings
72. Interpretation of certain references in existing laws
73. Short title and commencement
Schedules
[Repealed] Schedule 1 (Section 29) : Kinds of Assets
1. [Repealed] Requirement for claim to be asset, and definitions
2. [Repealed] Derivatives
3. [Repealed] Kinds of assets
[Repealed] Schedule 2 (Sections 29, 30 and 32) : Method of calculation of value of assets and liabilities
Part I : Valuation of assets
1. [Repealed] Amounts to be disregarded
2. [Repealed] Calculation of values
3. [Repealed] Registrar may reject certain values
Part II : Valuation of liabilities
4. [Repealed] Method of calculating amount referred to in section 32(1)(a)(ii)
5. [Repealed] Method of calculating unearned premium provision
6. [Repealed] Method of calculating contingency reserve
7. [Repealed] Determination of value of other liabilities
Schedule 3 (Section 60) : Lloyd's security
1. Definition of "South African short-term insurance policy"
2. Security to be provided to Lloyd's South African Trust
3. By whom and manner in which security to be provided
4. Amount of security
5. Contributions and withdrawal of surplus
6. Investment of trust funds
7. Returns in respect of Lloyd's South African Trust
8. Transitional provisions
Regulations
Regulations under the Short-term Insurance Act, 1998 (Act No. 53 of 1998)
Notice No. R. 1493 of 1998
Part 1 : Interpretation
1.1 Definitions
[Deleted] Part 2 : Calculation of Additional Amounts of Assets
Part 3 : Limitation on Assets (Section 30)
3.1 Definitions
3.2 General limitation on assets
3.3 Assets of asset-holding intermediary
3.4 Liabilities of asset-holding intermediary
3.5 Deemed assets
3.6 Futures contracts
3.7 Option contracts
3.8 Other derivatives
Table : Categories of Assets
Part 4 : Authorisation of and Requirements for Collection of Premiums by Intermediaries (Section 45)
4.1 Authorisation
4.2 Requirements in respect of security
4.3 Requirements in respect of payment to short-term insurers
4.4 Returns by authorised persons
Part 5 : Remuneration (Section 48)
Part 5A : Limitation on Remuneration for Services as Intermediary
5.1 General limitations
5.2 Time and payment of commission
5.3 Maximum commission payable
5.4 Reversal of commission
5.5 Commission when short-term policy comprises combination of policies
Part 5B : Limitation on Remuneration for Binder Functions
5.6 Application of this Part 5B, and definitions
5.7 General principles for determining remuneration for binder functions
5.8 Remuneration that may be offered or provided to a binder holder
5.9 Participation by a binder holder in profits attributable to the policies referred to in a binder agreement
Part 5C : Notification of Certain Arrangements with Independent Intermediaries or Representatives
5.10 Definitions
5.11 Notification of certain arrangements with independent intermediaries or representatives
Part 6 : Binder Agreements
6.1 Definitions and interpretation
6.2 Requirements, limitations and prohibitions relating to binder holders
6.2A Governance and oversight requirements
6.3 Requirements, limitations and prohibitions relating to binder agreements
6.4 Requirements, limitations and prohibitions relating to any consideration that may be offered or provided to a binder holder, and any participation by a binder holder in profits attributable to the policies referred to in a binder agreement
6.5 Exemption
6.6 Reporting requirements
6.7 [Deleted] Transitional arrangements
Part 7 : Contracts Identified as Accident and Health Policies under Section 70(2A)(a) of the Act
7.1 Definitions and interpretation
7.2 Categories and types of contracts identified as accident and health policies
7.3 Limitations applicable to category 1, 2 and 3 contracts
7.4 Requirements applicable to all contracts referred to in the Table under regulation 7.2(1)
7.5 Marketing and disclosures requirements
7.6 Reporting requirements
7.7 Transitional arrangements
Part 8 : Title and Commencement
Notices
Notice No. 386 of 2009 -Amendment of Board Notice 80 of 2008 : Returns to Authority
Notice No. 295 of 2010 -Amendment of Board Notice 80 of 2008 and Notice No. 386 of 2009: Returns to Authority
Penalty for failure to furnish Authority with Returns etc.
[Repealed] Notice No. 118 of 2021
[Repealed] Notice No. 1792 of 2022
[Repealed] Notice No. 3079 of 2023
Notice No. 4404 of 2024
Board Notices
Appointment of Members of the Short-Term Insurance Advisory Committee
Board Notice 76 of 2006
Documents which a person may inspect or obtain a copy of or an extract from in terms of Section 3(4) of the Short-term Insurance Act, 1998 ("the Act")
Board Notice 94 of 2007 : Documents which a person may inspect
Returns by Short-term Insurers to Registrar
Board Notice 80 of 2008
Internal Model Application Process: Pre-Application Pre-Application Assessment Fees
Board Notice 188 of 2011
1. Definitions
2. Fees
3. Payment of fees
Notice on Governance and Risk Management Framework for Insurers, 2014
Board Notice 158 of 2014
Part 1 : Interpretation
1. Definitions
Part 2 : Governance and Risk Management Framework - General
2. Governance framework
Part 3 : Composition, Governance and Structure of the Board of Directors
Board of directors
3. Composition and governance of board of directors
4. Roles and responsibilities of board of directors
5. Duties of each director
Committees of the board
6. Structure of board of directors
7. Risk and remuneration committees
8. Risk committee
9. Remuneration committee
Part 4 : Risk Management System
10. Risk management system
11. Overall risk management policy
12. Fit and proper policy
13. Remuneration policy
14. Asset-liability management policy
15. Investment policy
16. Underwriting risk management policy
17. Reinsurance and other forms of risk transfer policy
18. Liquidity risk management policy
19. Concentration risk management policy
20. Operational risk management policy
21. Insurance fraud risk management policy
Part 5 : Internal Control System
22. Internal control system
23. General requirements for control functions
24. Risk management function
25. Compliance function
26. Internal audit function
27. Actuarial function
28. Head of control function
Part 6 : General
29. Title and commencement
30. Transitional provisions
Notice on Fit and Proper Requirements, 2015
Board Notice 158 of 2015
Part 1 : Interpretation
1. Definitions
Part 2 : Matters to be taken into account by Authority
2.
Part 3 : Fit and Proper Requirements for Director, Senior Manager, Public Officer, Auditor or Statutory Actuary
3. Requirements relating to competency
4. Requirements relating to integrity
5. Auditor that is a firm
Part 4 : Fit and Proper Requirements for Significant Owners
6. Requirements relating to financial standing
7. Requirements relating to integrity
Part 5 : General
8. Title and commencement
Policyholder Protection Rules
[Repealed] Policyholder Protection Rules, (old)
Policyholder Protection Rules
Response Paper on consultation on the Policyholder Protection Rules
1. Definitions
2. Purpose of the Rules
3. Summary
4. Principles of disclosures
5. Obligatory disclosures
6. Other disclosures
7. Standardised disclosures
8. Consequences of non-compliance
9. Void provisions
10. Format of policies
11. Additional duties of insurers and independent intermediaries
12. Termination and alteration of certain agreements and relationships
13. Records, monitoring systems and annual reports
14. Special duties of Registrar
15. Waiver of rights
16. Penalties
17. Title
[Repealed] Policyholder Protection Rules (Short-Term Insurance), 2004
Notice No. R. 1128 of 2004
1. Definitions
2. Objective and Application of Rules
3. Application
4. Basic Rules for Direct Marketers
5. Rules on Void Provisionsand Format
6. General format of policies
7. Agreements
8. Waiver of rights
9. Penalties
10. Repeal and transitional provision
11. Short title and commencement
Policyholder Protection Rules (Short-Term Insurance), 2017
Notice No. 1433 of 2017
Chapter 1 : Interpretation
1. Application
2. Definitions
Chapter 2 : Fair Treatment of Policyholders
Rule 1 : Requirements for the Fair Treatment of Policyholders
Chapter 3 : Products
Rule 2 : Product Design
Rule 2A : Microinsurance Product Standards
2A.1 Definitions
2A.2 Application
2A.3 Use of the term "microinsurance"
2A.4 Structure of policy benefits
2A.5 Variation and renewal of a microinsurance policy
2A.6 Waiting periods
2A.7 Exclusions
2A.8 Excesses
2A.9 Claims
2A.10 Reinstatement
2A.11 General
2A.12 Reporting of a new product
Rule 3 : Consumer Credit and Credit Life Insurance
Rule 4 : Cooling-Off Rights
Rule 5 : Negative Option Selection of Policy Terms or Conditions
Rule 6 : Determining Premiums and Excesses
Rule 7 : Void Provisions
Rule 8 : Waiver of Rights
Rule 9 : Signing of Blank or Uncompleted Forms
Chapter 4 : Advertising and Disclosure
Rule 10 : Advertising
Rule 11 : Disclosure
Chapter 5 : Intermediation and Distribution
Rule 12 : Arrangements with Intermediaries and Other Persons
Chapter 6 : Product Performance and Acceptable Service
Rule 13 : Data Management
Rule 14 : On-going Review of Product Performance
Rule 15 : Periods of Grace
Rule 16 : Record Keeping
Chapter 7 : No Unreasonable Post-Sale Barriers
Rule 17 : Claims Management
Rule 18 : Complaints Management
Rule 19 : Termination of Policies
Chapter 8 : Administration
Prescribed Fees
Notice of Prescribed Fees, 2003
Notice of Prescribed Fees, 2004
Notice of Prescribed Fees, BN 2005
Notice of Prescribed Fees, BN 27 of 2010
Prescribed requirements for calculation of value of assets, liabilities and capital adequacy requirement of short-term insurers
1. Definitions
2. General requirements
3. Valuation of assets
4. Valuation of liabilities
5. Calculation of the capital adequacy requirement
6. Process for the relaxation of a provision
7. Short title
Notice of Prescribed Fees, BN 28 of 2010
Prescribed requirements for the minimum amount of the security to be provided by or on behalf of a Lloyd's underwriter
Notice of Prescribed fees, BN 54 OF 2010
Prescribed short-term insurance fees
"unborn"
means a human foetus conceived but not born;
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