The National Assembly last week extensively deliberated on and passed the Short-Term Insurance Act Amendment and the Long-Term Insurance Act Amendment Bills. The Bills will now be submitted to President Hage Geingob for his signing into law and then subsequent gazetting.
Long-Term Insurance Act Amendment Bill
New provisions of the Long-Term Insurance Act Amendment Bill are aimed at enhancing administrative efficiency and greater financial inclusion in the insurance services industry. These include aligning the appeal process in respect of appeals made against the Registrar of long-term insurance with the appeal provisions set out in the NAMFISA Act.
The new amendments will remove the registration requirement for an upfront guarantee deposit of N$25 000 by an insurance or reinsurance broker, and will increase the minimum amount of the Professional Indemnity Insurance Policy that is required to be maintained by an insurance and reinsurance broker.
These amendments are expected to strengthen the powers of NAMFISA, align processes and enhance administrative efficiency, while promoting greater financial inclusion in the insurance industry.
Short-Term Insurance Act Amendment Bill
As is the case with the Long-Term Insurance Act Amendment Bill, this Bill proposes to align the appeal process in respect of appeals made against the Registrar and to remove the registration requirement for an upfront guarantee deposit.
Also, the Bill aims to increase the minimum amount of professional indemnity insurance policy maintained by brokers as a cover against liability arising from his/her professional conduct.
The rationale for the proposed amendment is that the minimum liability cover of N$500 000, as set in 1998, is no longer sufficient to cover against the third party liability risks that insurance and reinsurance brokers are exposed to today, given the time, value for money and market developments.
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