Insurance Act, 2017 (Act No. 18 of 2017)SchedulesSchedule 2 : Classes and Sub-Classes |
In this Schedule—
"beneficiary" means—
| (a) | in the case of an insurance policy other than a group insurance policy, the person stated in the insurance policy or a person nominated by the policyholder as the person in respect of whom the insurer should meet the insurance obligations; or |
| (b) | in the case of a group insurance policy— |
| (i) | a member of the association or fund, or an employee; or |
| (ii) | a person nominated by the member referred to in subparagraph (i) in respect of whom the insurer should meet the insurance obligations, which person is not the association, fund or employer; |
"fully guaranteed" means where the total insurance obligations under an insurance policy payable at the end date of the insurance policy or, in respect of an annuity, at each annuity instalment, are at the start of the policy—
| (a) | stated in the insurance policy in Rand terms; or |
| (b) | stated in or ascertainable from the insurance policy with reference to the growth rate used in calculating the policy’s investment value or, in the case of an annuity, each annuity installment, which growth rate is stated in the insurance policy as a fixed rate of return or stated return linked to inflation over the full term of the insurance policy; |
"fund" means—
| (a) | in respect of life insurance business— |
| (i) | a friendly society as defined in section 1 of the Friendly Societies Act, 1956 (Act No. 25 of 1956); |
| (ii) | a pension fund organisation as defined in section 1 of the Pension Funds Act, 1956 (Act No. 24 of 1956); and |
| (b) | in respect of non-life insurance business, a medical scheme as defined in section 1 of the Medical Schemes Act, 1998 (Act No. 131 of 1998); |
"group" in respect of the classes of insurance business, relates to an insurance policy entered into with—
| (a) | an autonomous association of persons united voluntarily to meet their common or shared economic and social needs and aspirations (other than obtaining insurance), which association is democratically-controlled; |
| (b) | an employer; or |
| (c) | a fund, |
where the association, employer or fund holds the insurance policy exclusively for the benefit of a beneficiary;
"individual" in respect of the classes of insurance business, relates to an insurance policy entered into with a person (whether individually risk rated or underwritten on a group basis) and—
| (a) | includes— |
| (i) | an insurance policy where a credit provider is the policyholder and the person in respect of whom the insurer should meet the insurance obligations, and the persons who are the lives insured under the policy are debtors of that credit provider; |
| (ii) | an insurance policy where an employer is the policyholder and the person in respect of whom the insurer should meet the insurance obligations, and the persons who are the lives insured under the policy are directors or employees of that employer; but |
| (b) | excludes— |
| (i) | a group insurance policy; and |
| (ii) | subject to (a)(i) and (ii), an insurance policy where the persons who are the life insureds under the policy are two or more persons without an insurable interest in each other; |
"inflation" means any rate of inflation published by Statistics South Africa, or any successor body, from time to time;
"investment value" means the value of an insurance policy calculated as the accumulated basic premium and investment return stated in or ascertainable from the insurance policy, less deductions specifically provided for in the insurance policy;
"linked" means where the insurance obligations under an insurance policy are—
| (a) | not fully guaranteed or partially guaranteed; and |
| (b) | determined solely by reference to the value of particular assets or categories of assets which are specified in the insurance policy and are actually held by or on behalf of the insurer specifically for the purposes of the insurance policy, less deductions specifically provided for in the insurance policy; |
"lump sum" means a single stated sum of money;
"market related" means where the insurance obligations under an insurance policy are not partially guaranteed, fully guaranteed or linked;
"partially guaranteed" means where some, but not all, the insurance obligations under an insurance policy at the end date of the insurance policy or, in respect of an annuity, at each annuity installment, are at the start of the insurance policy—
| (a) | stated in the insurance policy to be no less than an amount in Rand terms; or |
| (b) | stated in or ascertainable from the insurance policy to be no less than an amount calculated with reference to a growth rate used in calculating the policy’s investment value or, in the case of an annuity, each annuity installment, which growth rate is stated in the insurance policy as a fixed rate of return or stated return linked to inflation over the full term of the insurance policy; |
"start of the policy" means the date on which an insurance policy is entered into between an insurer and a policyholder;
"underwritten on a group basis" means where the risks covered under an insurance policy are rated based on the characteristics of a group of people together, as opposed to that of the individual or individuals to whom the policy relates.