Sasria Accounting Regulation 2022

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 for premiums transferred late into the Sasria bank account.
• VAT: premiums and sums insured are inclusive of VAT; schedules attaching to Sasria 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 applies to individual and group scheme policies.
• Pro-rating is only allowed in specified instances (e.g., first-time coupon/policy with period <12 months, alignment to renewal date or financial year-end via renewal warranty, expiry date changes, sum insured adjustments, midterm insurer change, and small pro-rata waivers by agents under R10 annual or R1 monthly).
• Refunds of minimum premiums are not allowed; refunds are only permissible in specified instances (e.g., sale/insolvency, take-over certificate transfer, cancellation of underlying policy due to adverse claims/underwriting, midterm insurer change, sum insured reductions, expiry retraction, dual insurance, annual declarations subject to endorsement).
• Premium reversals require application to Sasria with supporting documentation; unauthorized reversals may lead Sasria to dishonour claims if it is 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 raised premium, but claims may be 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 audits: agents with annual estimated nett premium of R5 million or more must submit audit certificates at half-year intervals; due dates are 30 Nov (for period ending 30 Sep) and 31 May (for period ending 31 Mar).
• External audit late submission penalty: R500 per day for audit certificates received after the specified period; extension requests must be made in writing to the Finance Director before expiry.
• Sasria SOC Limited
• Sasria SOC Ltd (Reg. No. 1979/000287/06)
• Sasria agents
• Intermediaries
• Sasria Internal Audit
• External auditors
• Finance Director
• Short-Term Insurance Act No. 53 of 1998