Insurance Act, 2005
Act 7 of 2005
- Assented to on 26 November 2005
- [This is the version of this document at 1 December 1998.]
Part I – Preliminary
1. Short title and commencementThis Act may be cited as the Insurance Act, 2005, and shall come into force on a date to be published by the Minister in the Gazette.
Part II – Transitional provisions and registration of insurers
3. Prohibition of unregistered insurers
4. Transitional measures concerning current insurance business
5. Contracts with foreign insurers prohibited
6. Registration of insurers
7. Qualifying requirements for registration as an insurer
8. Principal office and principal representative in swaziland
9. Prohibition of certain actions by insurers and use of certain words
10. Change of name
11. Limitation on the issue of types of shares and the rights attaching to shares
12. Limitation on the ownership of shares
13. Cancellation of the registration of an insurer
Part III – Transitional provisions and registrations of intermediaries
14. Unlicensed insurance brokers and insurance agents prohibited
15. Application for licence to carry on the business of an insurance broker
16. Considerations pertaining to the licensing of insurance brokersBefore issuing a licence to carry on the business of an insurance broker, the Registrar shall ensure that the granting of the licence will not be against the public interest by considering whether—
17. Qualifying requirements for registration as a broker
18. De-registration of a broker
19. Registration and operation of insurance agents
Part IV – Registrar of Insurance and Retirement Funds
20. Registrar of Insurance and Retirement Funds
21. Persons disqualified from being appointed as RegistrarNo person shall be appointed as the Registrar if that person—
22. Functions of the RegistrarSubject to the provisions of this Act the Registrar—
23. Delegation of the powers and assignment of the duties of the Registrar
24. Minister’s authority to remove the Registrar from office
25. Registrar’s enforcement authority
26. Confidentiality of non-public information
27. Registrar’s annual report to the Minister
28. Special provisions covering the Registrar’s office and the powers of the Registrar
Part V – The Insurance and Retirement Funds Board
29. Establishment of Insurance and Retirement Funds Board
30. Constitution of the Board
31. Persons disqualified from being appointed to the BoardNo person shall be appointed as a member of the Board who—
32. Functions of the BoardThe functions of the Board are to—
33. Term of office of board members and filling of vacancies
34. Meetings and decisions of the Board
35. Remuneration of members of BoardThe members and alternate members of the Board shall be remunerated as the Minister determines from the Consolidated Fund which shall be reimbursed from the Registrar’s Levies Account.
36. Removal of members of the Board
Part VI – Financial arrangements pertaining to the office of the Registrar
37. Registrar’s Levies Account
38. Employment of Registrar’s Levies AccountThe Registrar’s Levies Account shall be controlled by the Registrar and its funds shall be employed—
39. Budget of the office of the Registrar
40. Accounting, auditing and reporting of Registrar’s Levies Account
41. Registrar’s Guarantee Account
42. Employment of Registrar’s Guarantee Account
43. Insurance and Retirement Benefit Trust Fund
44. Claims on the Insurance and Retirement Benefit Trust Fund
Part VII – (Provisions relating to administration and business of insurers and intermediaries)
45. Registrar may direct the removal of certain officers
46. Registrar to be notified of certain appointments and terminations
47. Appointment, powers and duties of auditor
48. Appointment, powers and duties of valuator
Part VIII – Conduct of insurer’s business and related provisions
49. Prohibition of inducements
50. Prohibition of coercion
51. Premiums paid in cash
52. Invalidity of certain provisions
54. Insurer’s responsibility for action of agent
Part IX – Amalgamation of business
55. Registrar to approve any amalgamation of business between insurersAny agreement between two or more insurers which will result in the transfer of all or part of the business from one insurer to another shall be of no legal force unless the Registrar has approved the agreement and his decision has been made an order of the Court.
56. Obligation pertaining to application
57. Withholding of approval
58. Valid approval
59. Costs of applicationThe costs of any application made by the Registrar in terms of this Part shall be borne by the parties to the agreement.
60. Registrar to approve acquisition of interest in insurer
Part X – Statutory obligations pertaining to intermediaries
61. Rules for operation for brokers
62. Examination of brokersThe Registrar may from time to time, after consultation with the Minister, cause an examination to be made of any insurance broker in a manner consistent with this Act.
63. Broker’s responsibility for premiums
64. Broker’s responsibility for actions of agents
Part XI – Judicial intervention and winding up
65. Application for judicial management or winding up of an insurer
66. Judicial management of an insurer
67. Winding up of an insurer
Part XII – Statutory limitations
68. Limitations of business
69. Policy suspended until first premium paidThe obligations of an insurer under a policy to provide policy benefits shall be suspended until the insurer or his agent or representative has received the first premium or an arrangement to the insurer’s satisfaction has been made for the premium to be paid by debit order, stop order, credit card or otherwise provided that for classes of business other than individual life policies where the practice of the insurer has been to undertake the risk without making prior arrangements for the payment of premiums, then the policy benefits shall come into force from a date as stipulated or implied on the policy contract.
70. Remuneration of intermediariesNo consideration offered, provided or accepted by or for any person for providing services as an intermediary shall in aggregate exceed the amounts as provided for in terms of the Regulations.
71. Undesirable business practice
Part XIII – Policyholder protection
72. Registrar’s authority to propose rules for policy contents
73. Policy to be actuarially sound
Part XIV – (Long term insurers)
Financial matters and related issues
75. Investment of long term insurer’s assets
76. Prohibition of use of assetsA long term insurer shall not—
77. Valuation of liabilities for long term insurance
78. Maintenance of financially sound condition
79. Failure to maintain financially sound condition
80. Returns to Registrar
81. Failure to submit returns
Part XV – (Short term insurers)
Financial matters and related issues
83. Investment of short term insurer’s assets
84. Prohibition on use of assetsWith respect to his short term assets an insurer shall not—
85. Valuation of liabilities for short term insuranceThe liabilities of a short term insurance shall be the sum of—
86. Maintenance of financially sound condition
87. Failure to maintain financially sound condition
88. Returns to Registrar
89. Failure to submit returns
Part XVI – Consideration and adjudication of complaints
90. Submission and consideration of complaints
91. Establishment of Office of Insurance Adjudicator
92. Appointment of Adjudicator
93. Main object of AdjudicatorThe main object of the Adjudicator shall to be dispose of complaints lodged in terms of section 90 of this Act in a procedurally fair, economical and expeditious manner.
94. Disposal of complaints
95. Opportunity to commentWhen the Adjudicator intends to conduct an investigation into a complaint, he or she shall afford the person against whom the allegations contained in the complaint are made, the opportunity to comment on the allegations.
96. Parties to complaintThe parties to a complaint shall be—
97. Jurisdiction and prescription
98. Time limit for lodging of complaints
99. Procedure of conducting investigation
100. Legal representationNo party shall be entitled to legal representation at proceedings before the Adjudicator except where the Adjudicator has given permission for the parties to obtain legal representation or where the Adjudicator has requested the parties to obtain legal representation.
101. Record of proceedings
102. Statement by Adjudicator regarding determinationAfter the Adjudicator has completed an investigation, he or she shall send a statement containing his or her determination and the reasons therefor, signed by him. to all parties concerned as well as to the clerk or the Registrar of the Court which would have had jurisdiction had the matter been heard by a Court.
103. Interest on amount awardedWhere a determination consists of an obligation to pay an amount of money, the debt shall bear interest as from the date and at the rate determined by the Adjudicator.
104. Enforceability of determination
105. Access to Court
106. Powers of AdjudicatorThe Adjudicator may with the concurrence of the Registrar—
107. Expenses of the Adjudicator
108. Remuneration and terms and conditions of employment of Adjudicator and employees
109. Report of AdjudicatorThe Adjudicator shall each year within six months after the end of the financial year, submit a report to the Minister on his activities during the financial year.
110. Offences and penaltiesA person who—
111. Limitation of liabilityThe Adjudicator, or any of his or her employees, shall not be liable in respect of anything done or omitted to be done in good faith in the exercise of a power or the performance of the duty conferred or imposed by or under this Act.
112. Liquidation of office of AdjudicatorThe Office of the Adjudicator shall not be placed in liquidation except by Act of Parliament.
Part XVII – Final provisions
113. Days of grace and non-forfeiture provision
114. General penaltyA person who contravenes any provision of this Act or its Regulations commits an offence and, if no penalty is specially prescribed in this Act for that contravention, shall be liable on conviction to a fine not exceeding E40 000 or to a term of imprisonment not exceeding two years.
115. Penalty for false representationAny person who submits false information on any document required in terms of this Act commits an offence and on conviction he shall be liable to a fine not exceeding of E40,000 or to imprisonment for a period not exceeding two years.
116 Decisions of the Registrar and Insurance Board may be made an order of the CourtThe Registrar or the Chairman of the Insurance Board may apply to the Court to have any of their decisions made an order of the Court.
117. Adherence to the provisions of this Act shall not constitute an offenceAny person who in good faith supplies information to the Registrar, a Court or the Insurance Board in accordance with the provisions of this Act shall not be guilty of an offence in terms of any law, or be subject to sanctions in terms of any code of conduct or ethics or be in breach of any agreement.
118. Power to make Regulations and issue directives
119. Repeal of legislation
History of this document
26 November 2005
01 December 1998 this version
Cited documents 0
Documents citing this one 6
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