Short-Term Insurance Act, 1998 (Act No. 53 of 1998)Policyholder Protection RulesPolicyholder Protection Rules (Short-Term Insurance), 2017Chapter 3 : ProductsRule 2A : Microinsurance Product Standards2A.8 Excesses |
| 2A.8.1 | A microinsurance policy may only provide one standard excess per risk event covered under a particular class of non-life insurance business referred to in Table 2 of Schedule 2 of the Insurance Act. |
| 2A.8.2 | If an excess is payable under a microinsurance policy, such excess must be disclosed to a policyholder or member of a group scheme, or a potential policyholder or potential member of a group scheme in accordance with rules 11.4.1, 11.5.1 and 17.10. |
| 2A.8.3 | Where any excess is payable under a microinsurance policy in respect of which the aggregate value of the policy benefits is R120 000 or less, the excess may not exceed the lower of— |
| (a) | 10% of the value of the policy benefits, payable for the risk event as set out in the policy; or |
| (b) | R1 000. |
| 2A.8.4 | Any excess payable under a microinsurance policy in respect of which the aggregate value of the policy benefits exceeds R120 000, may not exceed 10% of the value of the policy benefits, payable for the risk event as set out in the policy. |
| 2A.8.5 | The amounts referred to in this rule escalates annually, from the effective date of this rule, by the Consumer Price Index (CPI) annual inflation rate published by Statistics South Africa, as defined in section 1 of the Statistics Act, 1999 (Act No. 6 of 1999). |
[Rule 2A.8 inserted by rule 6(b) of Notice No. 996, GG 41928, dated 28 September 2018]