Sasria Accounting Regulation 1

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 to Sasria Finance or via the Customer Web Portal (CWP)
• Late premium remittance penalty: fixed non pro-rata 10% of nett premium per month on premiums transferred late into Sasria bank account
• VAT: premiums and sums insured are inclusive of VAT; schedules attached to Sasria coupons/policies are tax invoices conforming to VAT Act Section 20 (Act 89 of 1991)
• Minimum premium rules: minimum premium cannot be pro-rated and applies per rating class to individual and group scheme policies
• Pro-rata premiums allowed only in specified cases (e.g., first-time cover with period <12 months, alignment to renewal date/financial year-end, sum insured changes, insurer change midterm, etc.) and may be waived/refunded by agents if below R10 (annual) or R1 (monthly)
• Refunds of minimum premiums are not allowed; refunds permitted only in specified cases (e.g., sale/insolvency, final transfer of ownership, cancellation due to adverse claims/underwriting, midterm insurer change, sum insured reductions, expiry retraction, dual insurance, annual declarations) and no refunds for previous periods more than one year unless Sasria confirms in writing
• Premium reversals require application to Sasria with supporting documentation; unauthorized reversals may lead Sasria to dishonour claims if Sasria is prejudiced
• Unpaid premiums: if premium not received by agent within legal time frame under the Short-Term Insurance Act 53 of 1998, coupon/policy lapses automatically; agent may reverse raised premium; claims considered if premium is paid
• Policy fee structure: non-motor agents retain 27.5% of premium (max 15% rebate to intermediary); motor/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 or more must submit two half-yearly audit certificates (due 30 Nov for period ending 30 Sep; due 31 May for period ending 31 Mar)
• External audit exemption: agents with annual estimated nett premium < R5 million and all Captives exempt from two audits; required to submit one audit certificate covering 12 months ending 31 March
• Late audit certificate penalty: R500.00 per day for certificates received after the specified due date; extension requests must be made in writing to the Finance Director before the due date
• Sasria SOC Limited
• Sasria agents
• Intermediaries
• Sasria Internal Audit
• External auditors