Long Term Insurance

Regulatory Framework

The Non Bank Financial Institutions Regulatory Authority Act and the Insurance Industry Act and the International Insurance Act regulate the establishment, licensing and operation of long-term insurers in Botswana. The Income Tax Act; regulates the taxation of retirement fund contributions, investment income and benefits.

Brief Definition

Simply put, life insurance pays out cash to a beneficiary you nominate in the event of your death from natural or accidental causes. It may also pay out for a disability or critical illness. Some insurance companies refer to life insurance as life assurance. This is really the same thing. Whether or not you are eligible for life insurance will depend on factors such as your health, lifestyle and type of employment. If you do qualify, your monthly premium will be based on factors such as your age, gender, health and occupation.

Long term insurance policies consist of the following:

  • Life
  • Dread disease
  • Income protection policies
  • Endowments
  • Retirement annuity funds
  • Living annuities
  • Compulsory annuities

What are the provided services/Processes?

  • Licensing
  • Complaints handling. (Click here for complaints handling procedure)
  • Analysis
  • Vetting

Regulated entities

Supervision and regulation of non-bank financial institutions (s 49)

  • (1) The non-bank financial institutions referred to in subsection (2) are declared to be prudentially regulated non-bank financial institutions, and accordingly the provisions of section 50 and prudential rules made there under shall have effect in relation to such prudentially regulated financial institutions.
  • (m) insurance agent;
  • (n) insurance broker;
  • (o) international insurance firm;
  • (f) an insurer;