Policy Fees – Revised

9 July 2014

To: Principal Officers - All registered insurers and reinsurers All insurance agents and brokers and reinsurance brokers Chairperson - LAAN Chairperson - NIBA Chairperson - AIM Chairperson - NIA

CIRCULAR LETTER: I/STI & LTI/07/2014

Effective date: 9 July 2014

SUBJECT: POLICY FEES

The insurance industry is hereby informed of clarification in the initial Circular Letter I/STI & LTI/02/2014, its consequent withdrawal and replacement with this Circular Letter. The principle of the initial circular is embodied in this new Circular Letter.

The insurance industry must strictly comply with Regulation 13 to the Long-term Insurance Act No. 5 of 1998 and Regulation 6 to the Short-term Insurance Act No. 4 of 1998 and therefore no Policy Fee shall be charged, paid, allowed, given or accepted with effect from the Effective Date.

Please note that the reference to Policy Fee in this Circular Letter is not a reference to any fee or charge included in the calculation of the premium of any insurance policy however such fee or charge is named.

The Registrar therefore requires full cooperation and support in this process by all industry players and stakeholders at large. Should you still need more clarity, please do not hesitate to contact either the Long-term Insurance manager or the Short-term Insurance manager.

Phillip N. Shiimi
CEO of NAMFISA and Registrar of Short-Term and Long-Term Insurance