PI-STI-4 Levies

NAMFISA
NAMIBIA FINANCIAL
INSTITUTIONS SUPERVISORY AUTHORITY
Safeguarding the Nation's Wealth

March 25, 2009

Enquiries: D. Nashidengo
R. Humavindu

Circular Letter: PI/STI/4/2009

TO: ALL REGISTERED SHORT-TERM INSURANCE COMPANIES, INSURANCE AGENTS, INSURANCE AND REINSURANCE BROKERS

RE: PAYMENT OF ANNUAL LEVIES

Purpose of the Circular

The purpose of the circular is to direct and remind the registered short-term insurers, reinsurer, insurance agents, insurance and reinsurance brokers to comply with Namibia Financial Institutions Supervisory Authority No.3 of 2001 section 25 (1) and (2) regarding the payment of annual levies. However, should payment been made; a proof of payment should be submitted to the Registrar's office.

Annual Levies in terms of the Act

The Government Gazette No.2947 of 1 April 2003 paragraph 2.4 (a) stated that every registered insurer under the Short Term Insurance Act No. 4 of 1998 must pay a levy equal to 1% of the insurer's gross premium income for the last financial year preceding the levy year, subject to adjustment after the end of the financial year in accordance with its actual gross premium income as reflected in its audited financial statement.

Paragraph 2.6 stated that every person registered as an insurance agent, Insurance Broker or reinsurance broker in terms of section 53 of the Short Term Insurance Act No. 4 of 1998 must pay a levy of N$1000.00

Payment of Levies

Levies payable in terms of the Government Gazette No.2947 of 1 April 2003 must be paid in two equal instalments, the first instalment due on the 30 September of each levy year to be paid not later than 31 October each year and the second instalment due on 31 March not later than 30 April of each year.

Tel: +264 61 290 5000, Fax: +264 61 290 5158, PO Box 21250, Windhoek, Namibia, 154 Independence Ave, Sanlam Centre, www.namfisa.com.na

Non-Compliance

Kindly be informed that failure to comply with the Government Notice No.78 of April 2003 (imposition of levies on NAMFISA), interest will be charged on amounts of overdue levies at a rate equal to the prevailing prime overdraft rate of the First National Bank of Namibia.

The payments of levies are not related to a received invoice and registered institutions need to ensure that the dates provided must be honoured whether an invoice was received or not.

Yours truly,

Lily Brandt
REGISTRAR: MEDICAL AID FUNDS