Insurance Industry Act, 2015
Ref Information Letter NBFIRA 9/6/10-V (141)
INSURANCE INDUSTRY ACT, 2015
|
Addressee |
Insurers and Insurance Intermediaries |
File |
General Insurance Correspondence |
|---|---|---|---|
|
Issue date |
Effective date |
Information Letter |
Status |
|
26/08/2020 |
16/05/2020 |
NBFIRA 9/6/10 –V(141) |
Issued |
|
Subject |
Revised Transitional Arrangements for Insurance Industry Act, 2015 |
||
1. PURPOSE
- Please be informed that following the outbreak of the Covid 19, the Non-Bank Financial Institutions Regulatory Authority (“NBFIRA”) has reconsidered the transitional arrangements for the Insurance Industry Act, 2015 and its Regulations.
- The purpose of this information letter is therefore to inform insurers and insurance intermediaries of the revised transitional arrangements for the Insurance Industry Act, 2015.
2. IMPLEMENTATION DATES OF THE TRANSITIONAL ARRANGEMENTS
2.1 Licensed insurers and insurance intermediaries are hereby informed that these transitional arrangements are with effect from 16 May, 2020.
3. AVAILABILITY AND INFORMATION SHARING
3.1 This information letter is available on the NBFIRA website (www.nbfira.org.bw). Licensed insurance entities must bring this information letter to the attention of their respective representatives.
3.2 For further clarification on this matter, please contact Gorata Molojwane at gmolojwane@nbfira.org.bw or Ogona Tshoswane at otshoswane@nbfira.org.bw.
Yours truly,
Mr. Sriram Gade
ACTING CHIEF EXECUTIVE OFFICER
Transitional Arrangements
Insurance Industry Act, 2015
- This information letter sets out the revised transitional arrangements.
- Please note that column 5 of the table below indicates the additional extended transitional period.
Summary of Transitional Arrangements
|
ITEM |
BEFORE |
AFTER |
TRANSITIONAL PERIOD FROM 17 MAY 2019 |
ADDITIONAL EXTENDED PERIOD |
|
Minimum capital requirements for insurance agents Reg. 5 |
Nil |
Higher of; P30,000 or 4% of annual income or 25% of expenses reported in the annual return |
18 months |
6 months |
|
Submission of audited annual returns by insurance agents Reg. 18 |
Accounts for insurance agents should be audited annually |
12 months |
6 months |
|
|
Professional indemnity for insurance brokers Reg. 24 |
P500,000 |
P1,000,000 |
12 months |
6 months |
|
Professional indemnity for insurance agents. Reg. 24 |
Nil |
P500,000 |
12 months |
12 months |
|
Security guarantee (Insurance brokers) Reg. 25 |
P25,000 |
Greater of P100,000 or 30% of total premiums actually received, held or in any other manner dealt with. Note that the security can be in the form of a general policy issued by a general insurer or contract given by a bank under which benefits are to be provided in the event of failure of the broker to meet its obligations |
12 months |
12 months |
