Regulations > Regulations under the Long-term Insurance Act, 1998 > Part 3 : Remuneration > Part 3A : Policies other than Policies to which Part 3B applies > Annexure 1

TABLE 1 : REGISTERED INSURERS

Item

Kind of policy or benefit component

Maximum percentage

Notes

Single premium policy

Multiple premium policy

Up-front payment reg 3.3(1)(b)(i) applicable

Secondary commission: reg 3.2(4)(b) applicable

Basic percentage

Limit per proviso to reg 3.4(1)(b)

Column 2

Column 3

Column 4

Column 5

Column 6

Column 7

Individual policy, not elsewhere specified

1.1

not immediate annuity

3.0

3.25

85.0

yes*

1.2

immediate annuity

1.2.1

not compulsory

1.5

not applicable

1.2.2

compulsory, not tied

1.5

not applicable

1.2.3

compulsory, tied

Nil

not applicable

Fund member policy

2.1

funding a retirement annuity fund

2.1.1

upon entry, not a transfer

2.5

3.0

75.0

yes*

2.1.2

upon entry, a transfer from a fund other than retirement annuity fund to

2.1.2.1

a fund chosen by the member

1.5

not applicable

2.1.2.2

a fund not chosen by the member

nil

not applicable

2.1.3

upon entry, a transfer from another retirement annuity fund

nil

not applicable

2.2

not funding a retirement annuity fund

2.2.1

upon entry, not a transfer

2.5

3.0

75.0

yes*

2.2.2

upon entry, a transfer from another fund

1.5

not applicable

Life policy

3.1

Other than term cover only

3.1.1

incorporated in a group scheme

3.1.1.1

which is a credit scheme

7.5

not applicable

3.1.1.2

which is not a credit scheme

Scale A

not applicable

3.2

Term cover only

3.2.1

individual

7.5

3.25

85.0

yes

3.2.2

incorporated in a group scheme

3.2.2.1

which is a credit scheme

7.5

not applicable

3.2.2.2

which is not a credit scheme

Scale A

not applicable

Fund Policy

Scale A

not applicable

Health policy and disability policy

5.1

Other than term cover only

5.1.1

individual

3.0

3.25

85.0

yes

5.1.2

incorporated in a group scheme

5.1.2.1

which is a credit scheme

7.5

not applicable

5.1.2.2

which is not a credit scheme

Scale A

not applicable

5.2.

Term cover only

5.2.1

Individual

7.5

3.25

nil

5.2.2

incorporated in a group scheme

5.2.2.1

which is a credit scheme

7.5

not applicable

5.2.2.2

which is not a credit scheme

Scale A

not applicable

Sinking fund policy

3.0

nil

Assistance policy

Notes to Table 1 of Annexure 1:

•	An asterisk (*) denotes "excluding a replacement policy"

•	A dash (-) denotes that there is no limit.

•	"nil" denotes that no commission may be paid.

•

A policy, other than one that provides an immediate annuity, that is a fund member policy or a fund policy falls under item 2 or 4, as the case may be, irrespective whether it can fall also under another item. A policy that provides an immediate annuity that is a fund member policy of a fund policy attracts the commission referred to in item 1.2.

•	Item 2.1.2.1 applies with effect from 1 March 2007.

•	A health policy under item 5 refers to a health policy other than a contract identified as a health policy in category 1 and 3 in the table under regulation 7.2(1) of the Regulations.

[Last note to "Notes to Annexure 1" inserted by regulation 1(c) of Notice No. 1582 of 2016]

[Annexure 1(Table 1) substituted by regulation 5(o)(i) of Notice No. 1015, GG 41942, dated 28 September 2018]

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

Regulations

Regulations under the Long-term Insurance Act, 1998

Part 3 : Remuneration

Part 3A : Limitation on Remuneration for Rendering Services as Intermediary - Policies other than Policies to which Part B Applies

Annexure 1

Table 1 : Registered insurers