PI-ST-2-2009 Annual Returns

09 March 2009

Enquiries: D. Nashidengo
R. Humavindu

Circular Letter: PI/STI/2/2009

TO: ALL REGISTERED SHORT-TERM INSURANCE BROKERS AND REINSURANCE BROKERS

RE: SUBMISSION OF ANNUAL RETURNS

Introduction

It is noted that some of the registered short-term insurance brokers and reinsurance brokers do not comply with the Short-Term Insurance Act No. 4 of 1998.

Purpose of the Circular

The purpose of the circular is therefore to direct all registered short-term insurance brokers, and reinsurance brokers to comply with the Short-Term Insurance Act No. 4 of 1998 when conducting short term insurance business.

Submission of Annual Returns

Section 56 of the Short Term Insurance Act No.4 of 1998 states that insurance brokers and reinsurance brokers should submit annual returns and every insurance broker and reinsurance broker shall-

(a) keep proper accounts of, and financial information relating to, his or her short-term insurance business; and

(b) annually, within six months after the end of his or her financial year, submit to the Registrar in such form as may be determined by the Registrar, a statement containing such particulars of any short-term insurance business solicited or negotiated by him or her and such other information as the Registrar may require.

Compliance

In terms of Section 56, of the Short Term Insurance Act No. 4 of 1998, insurance brokers and reinsurance brokers are hereby requested to submit their audited financial statements on an annual basis to this office.

General Offence and Penalties

Non compliance to the provision of Section 56 of the Act will result in a penalty as defined in section 69 of the Short Term Insurance Act no.4 of 1998.

Yours sincerely,

LILY BRANDT
REGISTRAR SHORT-TERM INSURANCE COMPANIES