The FSCA has increased the maximum penalty it can impose for not submitting returns, documents, or information timeously, in terms of the Long-term Insurance Act (LTIA) or the Short-term Insurance Act (STIA).
The increase is contained in Notice 4404 and 4405 in Government Gazette No. 50164.
With effect from 23 February 2024, the Authority can impose a penalty of up to R8 215 a day, an increase of 6% from the previous maximum penalty of R7 750 a day (per Notice 3078 and 3079 of 24 February 2023).
The penalty is provided for in section 68(1) of the LTIA and 66(1) of the STIA. The wording of both sections is identical.
(a) A person who fails to furnish the Authority with a return, information or document, as provided by this Act, within the specified period or the period determined by the Authority by notice on the official website, or any extension thereof, shall, irrespective of any criminal proceedings instituted against the person under this Act, be liable to a penalty not exceeding R5 000 for every day during which the failure continues, unless the Authority, on good cause shown, waives the penalty or any part thereof.
(b) The amount referred to in paragraph (a) must be adjusted by the Authority annually in order to reflect the Consumer Price Index, as published by Statistics South Africa.
Please advise what insurance returns are you referring to.
Any request for information from the FSCA. For example, in February, the FSCA asked all non-life insurers that belong to the Ombudsman for Short-term Insurance to provide the Authority with the number of personal lines claims reported in 2023.