Regulatory Alerts2003-07-11
Added · Updated
Circular Letter PV/SI/1/2003: Undesirable Business Practice in Short-Term Insurance
NAMFISA instructs short-term insurers, reinsurers, brokers, agents, and hire purchase companies to cease conducting short-term insurance business in Namibia unless registered with the authority. Registered entities are ordered to immediately stop contracting with unregistered brokers, agents, and hire purchase companies, and to cease practices that restrict client choice in policy selection. This directive enforces Section 60 of the Short-term Insurance Act and Section 4(2)(h) of the NAMFISA Act, with a formal notice of undesirable conduct to be published in the Government Gazette under Section 25(3) of the Short-term Insurance Act.
NAMFISA
NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY
— Safeguarding the Nation's Wealth! —
Enquiries: E.U. Tjipepa
July 11, 2003
CIRCULAR LETTER PV/SI/1/2003
UNDESIRABLE BUSINESS PRACTICE APPLIED BY CERTAIN PARTIES IN THE SHORT-TERM INSURANCE BUSINESS
This notice serves to advise all Short-term insurers, reinsurers, insurance brokers, reinsurance brokers, agents and including hire purchase companies (institutions) and any other interested parties not to carry on the business of short term insurance in Namibia unless such person is registered with NAMFISA to carry on such business.
We have become aware of certain practices by some registered insurance/reinsurance companies knowingly contracting with insurance brokers, agents and especially the reinsurance brokers and hire purchase companies who are not registered with NAMFISA and doing insurance business with these institutions.
We would also like to inform you that the practice of leaving no choice to the client to determine with whom a policy is to be taken, cannot be condoned and this should be dealt with in terms of Section 60 of the Short-term Insurance Act, (Act No.4 of 1998). The effect of these practices is to discriminate against certain registered parties and consequently, their members and to undermine the principle of regulation.
Notice is hereby given of our intention to publish a notice in the Government Gazette in terms of section 25 (3) of the Short-term Insurance Act, 1998 (Act 4 of 1998) of registered entities or to inform all our registered entities to cease any contractual agreements with such entities. This notice would declare this conduct as irregular or undesirable.
Consequently, all parties are instructed, to cease the practices referred to above with immediate effect to enable the matter to be dealt with in terms of section 25 (3) of the Short-term Insurance Act, (Act No.4 of 1998) and in terms section 4 (2)(h) of the Namibia Financial Institutions Supervisory Authority Act, 2001 (Act No. 3 of 2001).
Yours truly,
Marcelina Gage
Deputy Registrar (GM): Provident Institutions
FOR REGISTRAR: SHORT-TERM INSURANCE
• P.O. Box 21250 Windhoek NAMIBIA • 154 Independence Avenue • 8th Floor, Sanlam Centre
• Tel: (+264 61) 290 5000 • Fax: (+264 61) 256303 • E-Mail: info@namfisa.com.na