Regulatory Alerts2011-07-15
Premium Payments to General Insurance Companies Directive, 2011
Issued by the Registrar of Financial Institutions in Malawi, this Directive mandates that general insurance companies and intermediaries ensure policyholders pay premiums directly to insurers while requiring weekly cash remittances into trust accounts. It establishes strict compliance timelines, including a thirty-day limit for outstanding premiums before policy lapse, five working days for commission and reinsurance remittances, and mandatory monthly reporting of transactions and deviations. Non-compliance triggers tiered administrative penalties based on premium or commission values, alongside restrictions on direct client acquisition and potential license suspension for persistent breaches.
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