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

Regulations

Regulations under the Long-term Insurance Act, 1998

Part 5 : Requirements and Limitations regarding the Values and Benefits of Policies (Section 54)

Part 5A : Policies other than Policies to which Part 5B applies

5.4A Deduction of administration charge
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(1)The insurer may, in addition to causal event charges, deduct in respect of any causal event taking piece after 31 December 2017, either during or after the charge term, an administration charge of not more than R500.

 

(2)Despite paragraph (a), the administration charge must, if necessary, be reduced proportionally so that the investment value immediately prior to the causal event, less the causal event charge and administration charge, is not smaller than 70% of the investment value immediately before the causal event.

 

[Regulation 5.4A inserted by regulation 6(k) of Notice No. 1437 of 2017]