THE LISENCING OF SHORT TERM INSURANCE AGENTS AND BROKERS
The Purpose
The purpose of the exercise was to determine whether agents and brokers can be licensed annually,
once registered as agents and brokers, and whether such license can be accommodated by an
annual license fee which if not paid will result in cancelation of registration.
The Research
The research addressed three points:
1. Can levies being nullified?
2. Can annual license fees be introduced?
3. Can registered entity be deregistered if license fees are not paid?
The Findings
The act under section 53 makes provision that the registrar can register an applicant and issue a
certificate in a form as determined by the registrar. It does not refer to the duration of such
registration and nor is such duration mentioned in the regulations.
The registration process under section53(2)(a) determines that the application must be done in a
manner and form determined by the Registrar. On approval the Registrar will determine the form of
the certificate to be issued.
The act further under section 57 determines the methodologies to deregistered agent or broker.
These methodologies is again interdependent on the requirements of section 53(3), however
57(1)(b)(ii) determines a registered entity must comply with conditions set during registration. This
imply that the registrar can set condition for registration. Section 57(5) further determines that the
Registrar need to ensure that the liabilities in terms of the business will be met.
The act or regulations are therefore not clear about the duration of registration and whether it can
be preset for a 12 month period.
The regulations can however be used to achieve the objective of the Act and this objective is.
To regulate the carrying on of short-term insurance business in Namibia and to provide for matters
incidental thereto.
To provide “for matters incidental thereto” Section 73 allows for regulations to be made for several
matters but also for :
(k)
any matter which in terms of this Act is required or permitted to be prescribed; and
(l)
generally, any matter in respect of which the Minister considers it necessary or expedient to
make regulations in order to achieve the objects of this Act.
This not only makes provision for making regulations on registration and licensing but it also already
makes provision to incorporate certain standards and principals under the current act like:


The regulation can be used to regulate the industries through standards and principals which
will be provided from time to time under several of the sections of the act and these
sections than to be mentioned.
The standards and principals than can address:
o The methodology of the license certificate issuing.
o The format and type of information to be provided by the registered entities.
o The annual licensing of agents and brokers.
o The certificate form and format.
o The penalties to be paid on non-compliance
o The operational framework of intermediaries, agents, brokers
Several other standards and principals can be made depending on the allowance by the Act.
Namfisa Act
The NAMFISA act addresses, under section 25, the aspect of levies that “must” be imposed on
financial institutions by the Minister.
The definition of a financial institution includes insurance agents, brokers and reinsurance brokers.
Under section 25(2)(b) the type of levy to be charged can be defined.
The Authority can under section 9(1)(a) obtain funds through “fees” , 9(1)(b) levies or 9(1)(e) money
from any other source.
 “Fees” are used by the Short Term Insurance act for application purposes but since the word
fees are not defined it might be use for other purposes as well.
 “Levies” can be use due to the Namfisa Act allowing different type of levies.
 “Other Sources” can be used do define License Registration payments
The act however does not refer to the exemption of any financial institutions from levies in totality.
The Result
1. It does not seem that levies can be nullified.
2. However levies can be in different formats which indicate that license “levies” can be
allowed.
3. The Registrar can set conditions with registration and such conditions can further be
strengthen through standards and principals as determined by regulations. The condition
can than therefore be set to be registered but to renew licenses annually. Should such
renewal not take place the Registrar than can activate section 57 of the act.