Payments into RSA bank accounts only
In our ongoing review of existing processes, the operational teams have arranged for the following change to be implemented in existing policies in order to address the payment processes and requirement for a RSA bank account:
- Benefit payments will only be made in the RSA’s currency, into a bank account held in the RSA in the name of the beneficiary or employee.
FAIS licence category for Funeral insurance
The Financial Sector Conduct Authority (FSCA) issued FSCA FAIS Notice 16 of 2022 on 28 February 2022. This notice grants a 6-month exemption to intermediaries, i.e. financial service providers (FSPs) and their representatives, that are approved in respect of long-term insurance subcategory B1 (in terms of the FAIS Act), from compliance with the experience requirements applicable to funeral products, which are now classified under long-term insurance subcategory A (in terms of the FAIS Act).
Intermediaries that are not currently authorised for long-term insurance subcategory A therefore have until 31 August 2022 to gain the necessary authorisation by:
- notifying the Authority that they render financial services in respect of funeral products; and
- requesting the Authority to amend the subcategories of financial products for which they are authorised to include long-term insurance subcategory A; and
- submitting their updated central representative register to the Authority within 3 months after amendment of the subcategories.
Please note: If an intermediary has not obtained the relevant authorisation from the FSCA by 31 August 2022, they may not be authorised, approved or appointed in respect of SGR’s Funeral insurance. Consequently, SGR will not be permitted to continue with payment of commission, or allow new Funeral policies to be issued, or existing Funeral policies to be amended, until said authorisation has been obtained after this date.
Universal Education Protector (UEP) benefit: minimum allowance benefit as from 1 January 2022
In our last newsletter, we discussed the new additions to our Universal Education Protector (UEP) benefit as from 1 January 2022.
- A number of significant improvements were made to the UEP insurance product for new and existing policyholders applicable from 1 January 2022.
- The improved UEP benefits will apply to new as well as existing UEP claimants, for the education costs of eligible children incurred on or after 1 January 2022.
- The policy contracts of existing clients have been endorsed during the course of the first quarter of 2022, but all existing and new UEP claims on or after 1 January 2022 already qualified for the improved UEP benefits.
To arrange for payment of the minimum allowance benefit in respect of existing UEP claimants, as well as eligible children (attending no-fees schools) that did not previously qualify for UEP benefits, please remember to submit a bank certified copy of the surviving parent/guardian’s bank statement.
Please note: The minimum allowance benefit is only applicable for grades R and 1 -12, subject to the policy’s terms and conditions.