Interpretation of Section 3 of the Long-term Insurance Act, 1998

NAMFISA
NAMIBIA FINANCIAL
INSTITUTIONS SUPERVISORY AUTHORITY

• Safeguarding the Nation's Wealth! -

TO: All Registered Life Insurance Companies

29 April 2003

The purpose of this writing is to provide an interpretation of Section 3 of the Long-term Insurance Act, 1998, Act no. 5 of 1998.

In terms of Section 3(1)(b) of the abovementioned Act, a registered insurer shall only issue written domestic policies. Written domestic policies are to be issued in Namibia in Namibian currency in accordance with Section 3(1)(c) of the Act.

A client is free to pay the premiums in respect of a domestic policy from a bank account other than a Namibian bank account. Such payment is made to a registered insurer in Namibia and constitutes a payment in Namibian currency in Namibia.

A registered insurer may well effect a benefit payment into a bank account of a client, whether such bank account be foreign or Namibian. Such payment would be effected in Namibia, in Namibian currency.

It is in the interest of policyholders to ensure that practical mechanisms are in place to accommodate payments in respect of domestic policies from various mediums.

[Signature]
Frans van Rensburg
Chief Executive Officer

• 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