Short-Term Insurance Act, 1998 (Act No. 53 of 1998)Policyholder Protection RulesPolicyholder Protection Rules (Short-Term Insurance), 2017Chapter 3 : ProductsRule 6 : Determining Premiums and Excesses |
| 6.1 | A premium payable under a policy and the manner in and the extent to which the risk of loss is borne by policyholders through the use of excesses must reasonably balance the interests of the insurer and the reasonable benefit expectations of a policyholder or members of a group scheme, and be based on assumptions that are realistic and that the insurer reasonably believes are likely to be met over the term of the policy. |
| 6.2 | An insurer may not charge a policyholder or member of a group scheme any fee or charge in addition to the premium payable under the policy. |
| 6.3 | The fee referred to in rule 6.2 does not include a fee or charge— |
| (a) | deducted from the policy benefits, where the deduction is explicitly provided for in the policy; or |
| (b) | that is permitted in terms of legislation. |
| 6.4 | Any fee referred to in rule 6.3 must be clearly and prominently disclosed to the policyholder or member of a group scheme in accordance with rule 10.15 and before the policy is entered into. |
| 6.5 | This rule only applies to new policies and changes to the premium or fee structure of existing policies. |