Accounts Section Updated V1 05 2023 1

Key Takeaways

• Document: Accounting Section V1 05 2023 (Sasria SOC Limited)
• Premium remittance due within 30 days from end of month in which Sasria cover commences (applies to monthly and annual policies)
• Remittance via Annexure 1 return with mandatory details: agent name, address, VAT number, year of account, month of business, collection month, payment frequency
• Annexure 1 return must not be amended (no changes to Outsource Fee and Intermediary Fee formulas); submitted by email to Sasria Finance or via Customer Web Portal (CWP)
• Late premium transfer penalty: fixed non pro-rata 10% of nett premium per month; penalty fees payable on invoice
• VAT: premiums and sums insured inclusive of VAT; agent/intermediary fees inclusive of VAT; VAT invoices/schedules must conform to VAT Act Section 20 (Act 89 of 1991)
• Minimum premium: not pro-rated; applies per Sasria rating class for individual and Group Scheme policies
• Pro-rata premiums allowed only in specified cases (e.g., first-time coupon/policy with period <12 months; alignment to renewal date or financial year-end; sum insured adjustments; insurer change midterm; expiry date changes; dual insurance rules elsewhere)
• Refunds: minimum premiums may not be refunded; refunds only allowed in specified instances (e.g., sale/insolvency, transfer of ownership, cancellation of underlying policy, mid-term insurer change, sum insured reductions, expiry retraction, dual insurance, annual declarations subject to endorsement); no refunds for previous periods more than one year unless Sasria confirms in writing
• Premium reversals: only permissible upon application to Sasria with supporting documentation; unauthorised reversals may lead Sasria to dishonour claims if prejudiced
• Unpaid premiums: if not received by agent within legal time frame under Short-Term Insurance Act 53 of 1998, coupon/policy lapses; agent may reverse premium raised; claims considered if premium is paid
• Policy fee structure: non-motor agents retain 22.5% of premium (max 12% may be rebated to intermediary); motor/motor fleet agents retain 22% per policy (max 11.5% rebated to intermediaries)
• External audits: agents with annual estimated nett premium of R5 million must submit audit certificates half-yearly; those under R5 million and all captives exempt from two audits but must submit one certificate for 12 months ending 31 March
• External audit certificate submission deadlines: first period ends 30 Sep, certificate due 30 Nov; second period ends 31 Mar, certificate due 31 May
• Late audit certificate penalty: R500.00 per day for certificates received after the specified period; extension requests must be made in writing to the Finance Director before expiry
• Sasria SOC Limited
• Sasria agents
• Intermediaries