Regulatory Alerts2022-10-03
Added · Updated
Fees on an Insurance Auxiliary Directive No. SIB/59/2022
The National Bank of Ethiopia establishes specific investigation, licensing, renewal, and penalty fees for insurance auxiliaries, defined as agents, brokers, loss assessors, or surveyors. New license investigation fees are set at Birr 750 for agents, Birr 1,000 for assessors or surveyors, and Birr 5,000 for brokers, while corresponding licensing fees are Birr 1,500, Birr 2,000, and Birr 10,000 respectively. Renewal fees mirror the licensing amounts, and a penalty fee applies to auxiliaries failing to renew within one month of expiry, ranging from Birr 1,000 to Birr 2,000 depending on the license type. This Directive repeals several prior directives and provisions, entering into force on October 3, 2022.
የ ኢ ት ዮ ጵ ያ ብ ሔ ራ ዊ ባ ን ክ N A T I O N A L B A N K O F E T H I O P I A አ ዲስ አ በ ባ / A D D I S A B A B A
LICENSING AND SUPERVISION OF INSURANCE BUSINESS Fees on an Insurance Auxiliary Directive No. SIB/59/2022
Whereas, it is essential that the National Bank has to improve its service quality with a view to satisfy its customers;
Whereas, it is found necessary to revise existing fees on National Bank services provided to an insurance auxiliary;
Now, therefore, the National Bank has issued this Directive pursuant to the authority vested in it by articles 39(4), 40, and 64(2) of the Insurance Business Proclamation No. 746/2012 as amended by Insurance Business (Amendment) Proclamation No. 1163/2019.
1. Short Title This Directive may be cited as “Fees on an Insurance Auxiliary Directive No. SIB/59/2022”.
2. Definitions Unless the context provides otherwise, for the purpose of this Directive: 2.1. “fees” mean investigation, licensing, license renewal and penalty fees for failure to renew timely; 2.2. “insurance auxiliary” means an insurance agent, an insurance broker, loss assessor or insurance surveyor; and 2.3. “National Bank” means the National Bank of Ethiopia.
3. Scope of the Directive This Directive shall apply to an insurance auxiliary who desires to obtain or renew an insurance auxiliary license.
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4. Investigation and Licensing Fees of An Insurance Auxiliary 4.1 An insurance auxiliary applying to obtain new license shall pay: 4.1.1 investigation fee of: a) Birr 1,000.-(one thousand Birr) for a loss assessor or an insurance surveyor license or b) Birr 5,000.- (five thousand Birr) for an insurance broker license or c) Birr 750.- (seven hundred fifty Birr) for an insurance agent license. 4.1.2 licensing fee of: a) Birr 2,000.-(two thousand Birr) for a loss assessor or an insurance surveyor license or b) Birr 10,000.- (ten thousand Birr) for an insurance broker license; or c) Birr 1,500.- (one thousand five hundred Birr) for an insurance agent license.
5. License Renewal and Penalty Fees for Failure to Renew Timely 5.1 An insurance auxiliary applying for the renewal of his/her/its license shall pay: a) Birr 2,000.-(two thousand Birr) for a loss assessor or an insurance surveyor license or b) Birr 10,000.-(ten thousand Birr) for an insurance broker license or c) Birr 1,500.-(one thousand five hundred Birr) for an insurance agent license.
5.2 An insurance auxiliary who/which has failed to renew his/her/its license with in one month after the expiry date of the license shall be subject to a penalty fee of: a) Birr 1,000.-(one thousand Birr) for a loss assessor or an insurance surveyor license or b) Birr 2,000.-(two thousand Birr) for an insurance broker license or c) Birr 1,000.-(one thousand Birr) for an insurance agent license.
6. Repealed Directive and Provisions of Directives 6.1 Directive No. SIB/6/1994 is hereby repealed. 6.2 Article 6 Directive No. SIB/12/1996 is hereby repealed.
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6.3 Article 3.2 of article 3 of Directive No. SIB/19/1998 is hereby repealed. 6.4 Article 5 of Directive No. SIB/22/2002 is hereby repealed. 6.5 Article 6 and article 7(5) of article 7 of Directive No. SIB/30/2007 is hereby repealed. 6.6 Article 10 and article 11(3) of article 11 of Directive No. SIB/31/2010 is hereby repealed.
7. Effective Date This Directive shall enter into force as of 3rd day of October 2022.
Yinager Dessie (PhD) Governor
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