Long Term Insurance Act, 1998 (Act No. 52 of 1998)RegulationsRegulations under the Long-term Insurance Act, 1998Part 3 : RemunerationPart 3A : Limitation on Remuneration for Rendering Services as Intermediary - Policies other than Policies to which Part B Applies3.2 General limitations |
| (1) | No consideration shall, directly or indirectly, be provided to, or accepted by or on behalf of, an independent intermediary for rendering services as intermediary, otherwise than by way of the payment of commission in monetary form. |
| (2) | Subject to subregulation 3.4(1A), no commission shall be paid or accepted otherwise than in accordance with this Part generally, and specifically as specified in the Table. |
[Regulation 3.2(2) substituted by regulation 1(a) of Notice No. 1582 of 2016]
| (3) | Irrespective of how many persons render services as intermediary in relation to a policy, the total commission payable in respect of that policy shall not exceed the maximum commission payable in terms of regulation 3.4. |
| (4) | No secondary commission shall be paid or accepted— |
| (a) | in respect of a single premium policy; |
| (b) | except in the case of a policy and benefit component of a kind specified in items 1.1, 2.1.1, 2.2.1, 3.2.1 and 5.1.1 of Table 1 or items 1(a), 4(a)(i), 4(b)(i), 5(a)(i)(aa), 5(a)(ii)(aa), 5(c)(ii)(aa), 6(a)(i), 7, 8(a) and 8(b)(i)(aa) of Table 2; |
[Regulation 3.2(4)(b) substituted by regulation 5(i) of Notice No. 1015, GG 41942, dated 28 September 2018]
| (c) | if the policy concerned has terminated before the commencement of its second premium period. |
| (4A) | 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. |
[Regulation 3.2(4A) inserted by regulation 4(l) of Notice No. 1437 of 2017]
| (5) | The Authority may for purposes of subregulation (4A) by notice on the official web site 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 3.2(5) substituted by regulation 4(m) of Notice No. 1437 of 2017]