Government Gazette Staatskoerant

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1 Government Gazette Staatskoerant REPUBLIC OF SOUTH AFRICA REPUBLIEK VAN SUID AFRIKA Regulation Gazette No Regulasiekoerant Vol November November 2015 No N.B. The Government Printing Works will not be held responsible for the quality of Hard Copies or Electronic Files submitted for publication purposes ISSN AIDS HELPLINE: Prevention is the cure 39407

2 2 No GOVERNMENT GAZETTE, 13 NOVEMBER 2015 IMPORTANT I nfarmai,o-w from Government Printing Works Dear Valued Customers, Government Printing Works has implemented rules for completing and submitting the electronic Adobe Forms when you, the customer, submits your notice request. Please take note of these guidelines when completing your form. GPW Business Rules 1. No hand written notices will be accepted for processing, this includes Adobe forms which have been completed by hand.,-..,. 2. Notices can only be submitted in Adobe electronic form format to the submission address This means that any notice submissions not on an Adobe electronic form that are submitted to this mailbox will be rejected. National or Provincial gazette notices, where the Z95 or Z95Prov must be an Adobe form but the notice content (body) will be an attachment. 3. Notices brought into GPW by "walk -in" customers on electronic media can only be submitted in Adobe electronic form format. This means that any notice submissions not on an Adobe electronic form that are submitted by the customer on electronic media will be rejected. National or Provincial gazette notices, where the Z95 or Z95Prov must be an Adobe form but the notice content (body) will be an attachment. 4. All customers who walk in to GPW that wish to submit a notice that is not on an electronic Adobe form will be routed to the Contact Centre where the customer will be taken through the completion of the form by a GPW representative. Where a customer walks into GPW with a stack of hard copy notices delivered by a messenger on behalf of a newspaper the messenger must be referred back to the sender as the submission does not adhere to the submission rules. 5. All notice submissions that do not comply with point 2 will be charged full price for the notice submission. 6. The current cut -off of all Gazette's remains unchanged for all channels. (Refer to the GPW website for submission deadlines Incorrectly completed forms and notices submitted in the wrong format will be rejected to the customer to be corrected and resubmitted. Assistance will be available through the Contact Centre should help be required when completing the forms. ( or 8. All re- submissions by customers will be subject to the above cut -off times. 9. All submissions and re- submissions that miss the cut -off will be rejected to the customer to be submitted with a new publication date. 10. Information on forms will be taken as the primary source of the notice to be published. Any instructions that are on the body or covering letter that contradicts the notice form content will be ignored. You are therefore advised that effective from Monday, 18 May 2015 should you not comply with our new rules of engagement, all notice requests will be rejected by our new system. Furthermore, the fax number will also be discontinued from this date and customers will only be able to submit notice requests through the address government printing Department. / Government Punting Works,, REPUBLIC OF SOUTH AFRICA egazette

3 STAATSKOERANT, 13 NOVEMBER 2015 No DISCLAIMER: Government Printing Works reserves the right to apply the 25% discount to all Legal and Liquor notices that comply with the business rules for notice submissions for publication in gazettes. National, Provincial, Road Carrier Permits and Tender notices will pay the price as published in the Government Gazettes. For any information, please contact the egazette Contact Centre on or info.egazette@gpw.gov.za Contents No. Gazette No. Page No. Government Notices Goewermentskennisgewings Trade and Industry, Department of/ Handel en Nywerheid, Departement van 1104 National Credit Act, 2005: Invitation for public comment on the Draft Credit Life Insurance Regulations in terms of section 171(1)(d) (ii) of the National Credit Act (34/2005)

4 Trade and Industry, Department of/ Handel en Nywerheid, Departement van 1104 National Credit Act, 2005: Invitation for public comment on the Draft Credit Life Insurance Regulations in terms of section 171(1)(d) (ii) of the National Credit Act (34/2005) No GOVERNMENT GAZETTE, 13 NOVEMBER 2015 Government Notices Goewermentskennisgewings DEPARTMENT OF TRADE AND INDUSTRY NO NOVEMBER 2015 NATIONAL CREDIT ACT, 2005 INVITATION FOR PUBLIC COMMENT ON THE DRAFT CREDIT LIFE INSURANCE REGULATIONS IN TERMS OF SECTION 171(1) (d) (ii) OF THE NATIONAL CREDIT ACT 34 of 2005 I Dr Rob Davies. Minister of Trade and Industry. hereby in ternis of Section 1 71(1) (d) (n) of the National Credit Act (Act 34 of 2005) publish for public comment the Draft Credit Life Insurance Regulations as set out in the Schedule hereto Interested persons may submit written comments on the draft regulations not later than thirty (30) days from the date of publication of this notice to: Director -General, Department of Trade and Industry Private Bag X84 Pretoria 0001 Or hand deliver to 77 Meint)ies Street Block B. 1st Floor Sunnyside Pretoria Tel Fax No For AttentioivAr Siphamandla Kumkani \kor) i Dr Rob Davies (MD Minister of Trade and Industry Date :13/

5 STAATSKOERANT, 13 NOVEMBER 2015 No GOVERNMENT NOTICE No.R 2015 DRAFT CREDIT LIFE INSURANCE REGULATION, 2015 Draft Regulations made in terms of the National Credit Act, 2005 (Act No 34 of 2005), as amended For Public Comment (MINISTER OF TRADE AND INDUSTRY)

6 6 No GOVERNMENT GAZETTE, 13 NOVEMBER 2015 The Minister of Trade and Industry has, under section 171 of the National Credit Act, 2005 (Act No 34 of 2005) as amended, made Regulations in this schedule. CHAPTER 1 1 Definitions In these Regulations, any word or expression defined in the National Credit Act, 2005 bears the same meaning as in the Act and - "disability" means the occupational or functional ability of the mind or body of a person becoming so temporarily or permanently impaired that the person is unable to - (a) (b) (c) participate or continue his or her occupation or employment; participate in any occupation or employment that is reasonably suitable for that person given, amongst others, his or her education, experience and age: or inability to participate in any economic activities. 2. Application of the Act The cost of credit life insurance must be disclosed to the consumer in the format set out in Form Maximum prescribed cost of credit life insurance (1) The cost that a credit provider may charge a consumer in relation to credit life insurance referred to in section 106(1)(a). including the cost of any commission. fees or expenses in relation to that insurance, may not exceed

7 STAATSKOERANT, 13 NOVEMBER 2015 No the following maximum limits, which are calculated on the total of the consumers outstanding obligations under the credit agreement: Sub -sector Maximum prescribed cost of credit life insurance Mortgage agreements g R2 per R1 000 of the deferred amount (excluding } the cost of credit) Credit facilities R4.50 per R1 000 of the deferred amount (excluding the cost of credit) Unsecured credit transaction R4,50 per R1 000 of the deferred amount (excluding the cost of credit) Short term credit transaction R4,50 per R1 000 of the deferred amount (excluding the cost of credit) Developmental credit agreements R2,00 per R1 000 of the deferred amount (excluding the cost of credit) Other credit agreements R4,50 per R1 000 of the deferred amount (excluding the cost of credit) (2) Subject to sub -regulations (3) and (4), the credit life insurance cover must provide for at least the settlement of - (a) in the event of the consumer's death or permanent disability, the outstanding balance of the consumer's total obligations under the credit (b) agreement, in the event of the consumer's temporary disability, all the consumer's obligations that become due and payable - (i) for a period of 12 months:

8 8 No GOVERNMENT GAZETTE, 13 NOVEMBER 2015 (ii) (iii) during the remaining repayment period of the credit agreement: or until the consumer is no longer disabled, whichever is the shorter period; and (c) in the event of the consumer becoming unemployed or unable to earn an income, other than as a result of permanent or temporary disability, all the consumer's obligations that become due and payable - (i) for a period of 6 months; (ii) during the remaining repayment period of the credit agreement; or (iii) until the consumer finds employment or is able to earn an income, whichever is the shorter period. (3) Where a consumer is not employed on the date that the credit agreement is entered into, no cost relating to the risk of becoming unemployed or being unable to earn an income may be included in the cost of the credit life insurance. (4) A credit provider, at the request of the National Credit Regulator, or an insurer, at the request of the Registrar under the Long -term Insurance Act 52 of 1988 or the Short -term Insurance Act 53 of 1988, must demonstrate that the cost of credit life insurance charged to a consumer complies with the above sub -regulation (3). (5) The cost of credit life insurance must be determined having regard to the actual risk and liabilities associated with the credit agreement, including the risk of the events insured against occurring, with reference to the consumer's individual risk profile or the risk profile of a group of people that the consumer is a part of. (6) A credit provider or insurer that increases its credit life insurance premiums to the maximum prescribed cost of credit life insurance referred to in sub -regulation (1) after the date on which these regulations comes into operation must, at the request of the National Credit Regulator or the Registrar under the Long -term Insurance Act 52 of 1988 or the Short-term Insurance Act 53 of 1988, demonstrate that the cost of credit life insurance complies with sub -regulation (5).

9 STAATSKOERANT, 13 NOVEMBER 2015 No Exceptions and limitations of covered events (1) The credit life insurance may provide for the following exceptions and limitations only - Covered event Death Temporary disability Permanent disability } Death, Exceptions and limitations permanent disability and temporary disability resulting from: i) The abuse of alcohol, drugs or narcotics; ii) Willful self- inflicted injury or suicide; iii) Active participation in war, invasion, acts of foreign enemies, hostilities, warlike operations (whether war be declared or not), civil war, insurrection, rebellion revolution, civil commotion or uprisings, military power; iv) The use of nuclear. biological or chemical weapons, or any radioactive contamination; v) Participation in criminal activities: vi) Participation in hazardous activities such as mountain a climbing, bungee jumping and speed racing: vii) Any pre -existing condition the consumer was aware of that affected the consumer in the 12 months preceding the commencement of cover under that credit life policy. which condition was not disclosed by the consumer at the time the credit life insurance was applied for despite being explicitly requested to make such disclosure: Unemployment Unemployment or inability to earn an income resulting from: Inability to earn an income i) Retrenchment or termination of employment within the first 3 months after the commencement of cover under that credit life policy:

10 10 No GOVERNMENT GAZETTE, 13 NOVEMBER 2015 ii) Lawful dismissal, including dismissal as a result of willful misconduct that is a violation of some established, definite rule of conduct, a forbidden act, willful dereliction of duty or iii) iv) misconduct; Voluntary forfeiture of salary, wages, or other employment income: Voluntary retrenchment or termination of employment: v) Resignation: vi) vii) viii) Retirement; Participation in an unprotected strike: and Retrenchment of which the consumer was aware or received notice of during the 3 months preceding the date on which cover under that credit life policy commenced (2) The exceptions and limitations referred to in sub -regulation (1) must be explained to the consumer on the date that the credit agreement is entered into and at regular intervals thereafter. (3) If the credit life insurance provides for the settlement of the consumer's total obligations under a credit agreement in the event of temporary disability or the consumer being unable to earn an income. the maximum cost of credit life insurance may be increased by R1,00 per R (4) The credit life insurance must commence on the date on which the credit agreement is entered into and lapse (a) on the date on which the consumer's outstanding obligations under the credit agreement are settled; or (b) on the non -payment of the premiums due and payable under the credit life insurance in accordance with the applicable terms and conditions, whichever date is the earlier date.

11 STAATSKOERANT, 13 NOVEMBER 2015 No (5) The consumer may exercise the right in terms of section 106(4)(a) to substitute an insurance policy of the consumers choice at any time after the credit agreement is entered into if the premium and benefits under the new policy are the same as or better than those under the current policy. (6) The credit provider must comply with the guidelines issued by the National Credit Regulator and, the insurer must comply with the guidelines issued by the Registrar under the Long-term Insurance Act 52 of 1998 or the Short-term Insurance Act 53 of 1998 from time to time.

12 12 No GOVERNMENT GAZETTE, 13 NOVEMBER 2015 Printed by and obtainable from the Government Printer, Bosman Street, Private Bag X85, Pretoria, 0001 Contact Centre Tel: