Regulatory Alerts2021-01-22
Information Letter 1/2012 (ST) – Requirements for Bailee Insurance Under the Short-term Insurance Act
The Financial Services Board of South Africa issued this guidance to clarify compliance requirements under the Short-term Insurance Act for couriers, transporters, and other bailees offering insurance. Bailees must either register as insurers, secure policies through registered insurers, operate as licensed independent intermediaries, or function as binder holders to lawfully insure client goods. Non-compliant entities must notify the Registrar within thirty days and submit a remedial action plan, with ongoing failures constituting offences subject to enforcement committee review.
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