Long Term Insurance Act, 1998 (Act No. 52 of 1998)RegulationsRegulations under the Long-term Insurance Act, 1998Part 4 : Limitation on Provisions of Certain Policies (Section 54)4.2A Maximum fees, penalties or any other charges on loans |
| (1) | Where the terms of a loan on the security of a long-term policy provide for the charging of interest at a stated fixed rate, whether simple or compound interest, an insurer may only apply such interest to the capital amount of the Loan and not to any other cost or loss in respect of the loan. |
| (2) | Where the terms of a loan on security of a long -term policy do not provide for the charging of interest, an insurer may not impose any fees, penalties or other charges in respect of the loan in excess of an amount equal to the maximum causal event charge that the insurer would have been permitted to charge if the capital amount of the loan had been the amount surrendered in terms of a causal event referred to in paragraph (d) or (f) of the definition of causal event in Part 5A. |
[Regulation 4.2A inserted by regulation 5(f) of Notice No. 1437 of 2017]