Sasria Accounting Regulation

Key Takeaways

• Sasria agents must remit premiums within 30 days from the end of the month in which Sasria cover commences (applies to monthly and annual policies)
• Remittance must be done via Annexure 1 return with mandatory details (agent name/address/VAT number/year of account/month of business/collection month/payment frequency) and submitted by email or via Customer Web Portal (CWP)
• Late premium payment penalty: fixed non pro-rata 10% of nett premium per month for premiums transferred late into Sasria’s bank account
• VAT: premiums and sums insured are inclusive of VAT; Sasria schedules attaching to coupons/policies are tax invoices conforming to VAT Act section 20 (Act 89 of 1991)
• Minimum premium rules: minimum premium per policyholder per rating class may not be pro-rated and may not be refunded except in specified circumstances
• Pro-rata premiums allowed only in listed instances (e.g., first-time policy with period <12 months, alignment via renewal warranty, sum insured adjustments, insurer change midterm, etc.) and may be waived by agents under thresholds (annual < R10; monthly < R1)
• Premium reversals require application to Sasria with supporting documentation; unauthorized reversals may lead Sasria to dishonour claims if prejudiced
• Unpaid premiums: if not received within the legal time frame under the Short-Term Insurance Act 53 of 1998, the coupon/policy automatically lapses; agent may reverse the premium raised; claims considered if premium is paid
• Policy fee structure: non-motor agents retain 27.5% of premium (max 15% rebate to intermediary); motor/fleet agents retain 25% per policy (max 12.5% rebate to intermediaries)
• External audit certificates: agents with annual estimated nett premium of R5 million must submit two audit certificates per annum (due 30 Nov and 31 May); those with <R5 million and captives submit one per annum covering 12 months ending 31 March (due 31 May); penalty for late audit certificates is R500 per day
• External audit extension requests must be made in writing to the Finance Director before the specified deadline
• Sasria SOC Limited
• Sasria Internal Audit
• Sasria agents
• Intermediaries
• Sasria Finance department
• Finance Director
• External auditors
• ABSA (bank reference example used in transaction description)
• Short-Term Insurance Act No. 53 of 1998
• Value Added Tax Act No. 89 of 1991