Sasria SOC Limited Accounting Regulation 2020

Key Takeaways

• Sasria agents must remit premiums within 30 days from 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 bank account
• VAT: premiums and sums insured are inclusive of VAT; VAT invoices/schedules must conform 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-rata premiums allowed only in specified instances (e.g., first-time cover with period <12 months, alignment to renewal date/financial year-end via renewal warranty, sum insured changes, insurer change midterm, etc.) and may be waived by agents below R10 (annual) or R1 (monthly)
• Refunds of minimum premiums are not allowed; refunds only permitted in specified instances (e.g., sale/insolvency, final transfer of ownership, cancellation due to adverse claims/underwriting, mid-term insurer change, sum insured reductions, dual insurance, annual declarations subject to endorsement, etc.) and no refunds for previous periods beyond one year unless Sasria confirms in writing
• Premium reversals only permissible upon application to Sasria with supporting documentation; unauthorized reversals may lead Sasria to dishonour claims if it is prejudiced
• Unpaid premiums: if not received by the Sasria agent within the legal time frame in the Short-Term Insurance Act 53 of 1998, the coupon/policy 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 must submit audit certificates half-yearly; agents with <R5 million and all captives submit one certificate annually (12 months ending 31 March)
• External audit certificate deadlines: first period ends 30 September (certificate due 30 November); second period ends 31 March (certificate due 31 May)
• Late audit certificate penalty: R500 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
• Sasria Internal Audit
• External auditors
• Finance Director