June 28, 2018

Prudential Standards published and Commencement Notice gazetted for the SA Insurance Act

The Prudential Standards for the Insurance Act have been published consequent to the Commencement Notice of the Insurance Act being gazetted.

On 27 June 2018, the Minister of Finance by notice in the Gazette announced that the Insurance Act, 2017 will take effect on 1 July 2018.

The Minister has also indicated that certain sections in the Long-term Insurance Act, 1998 and the Short-term Insurance Act, 1998 will not be repealed with effect from 1 July 2018, namely:

Section in the LTIA Description of the section
48 Summary, inspection and copy of policy
52 Failure to pay premiums
53 Option for payment of policy benefits in money
56 Voidness of certain provisions of agreements relating to long-term policies
59 Misrepresentation and failure to disclose material information
60 Validity of contracts
Section in the STIA Description of the section
46 Receipt for premium paid in cash
47 Copy of policy and inspection of policy records
51 Voidness of certain provisions of agreements relating to short-term policies
53 Misrepresentation and failure to disclose material information
54 Validity of contracts

In addition, the Prudential Authority published today, the Prudential Standards prescribed under the Insurance Act, 2017 which deal with both the financial soundness requirements and the governance and operational requirements in respect of insurers, branches of foreign reinsurers, insurance groups, Lloyd's and microinsurers.

The Prudential Standards will take effect on 1 July 2018, to coincide with the commencement of the Insurance Act, 2017.

Click here to access a copy of the Government Gazette.

Click here to access the Prudential Standards.