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South Africa
Reinsurance of Damage and Losses Act, 1989
Act 56 of 1989
- Published in Government Gazette 11896 on 30 May 1989
- Assented to on 17 May 1989
- Commenced on 30 May 1989
- [This is the version of this document from 29 June 1990.]
- [Amended by Reinsurance of Material Damage and Losses Amendment Act, 1990 (Act 65 of 1990) on 29 June 1990]
1. Definitions
In this Act, unless the context indicates otherwise—"borrower" means a borrower as defined in section 1 of the Usury Act, 1968 (Act No. 73 of 1968);[definition of "borrower" inserted by section 1(a) of Act 65 of 1990]"loss in respect of a mortgage loan" means any financial loss suffered by a moneylender in terms of a money loan secured by a mortgage bond over immovable property situated in the Republic or in any state the territory of which previously formed part of the Republic, where—(a)the loss results from the moneylender being unable to recover at a sale of such property—(i)in execution, whether the sale was held at the instance of the moneylender or at the instance of any other person; or(ii)by public auction resulting from the insolvency of the borrower,any amount, including interest and other charges, owing in terms of the mortgage loan; and(b)the sale referred to in paragraph (a) is directly or indirectly related to or caused by any of the actions or circumstances contemplated in the definition of 'loss of or damage to property';[definition of "loss in respect of a mortgage loan" inserted by section 1(a) of Act 65 of 1990]“loss of or damage to property” means any loss of or damage to property related to or caused by—(a)any act (whether on behalf of any organization, body, person or group of persons) calculated or directed to overthrow or influence any state or government, or any provincial, local or tribal authority, with force, or by means of fear, terrorism or violence;(b)any act which is calculated or directed to bring about loss or damage in order to further any political aim, objective or cause, or to bring about any social or economic change, or in protest against any state or government, or any provincial, local or tribal authority, or for the purpose of inspiring fear in the public, or any section thereof;(c)any riot, strike or public disorder (including civil commotion, labour disturbances or lock-outs), or any act or activity which is calculated or directed to bring about a riot, strike or such disorder;(d)any attempt to perform any act referred to in paragraph (a), (b) or (c);(e)the act of any lawfully established authority in controlling, preventing, suppressing or in any other way dealing with any occurrence referred to in paragraph (a), (b), (c) or (d);“Minister” means the Minister of Finance."moneylender" means a moneylender as defined in section 1 of the Usury Act, 1968.[definition of "moneylender" added by section 1(b) of Act 65 of 1990]2. Minister may enter into agreement with insurer
The Minister may enter into an agreement with a registered insurer as defined in section 1 of the Insurance Act, 1943 (Act No. 27 of 1943), in terms of which he—3. Premiums shall be protected against creditor other than insurer
Notwithstanding anything to the contrary contained in any other law or the common law, premiums received after the commencement of the Finance Amendment Act, 1989 (Act No. 45 of 1989), by any person other than the insurer referred to in section 2 on behalf of such insurer in connection with policies of insurance referred to in section 2(a), shall not constitute an asset of such person and shall not be subject to attachment by any creditor other than the insurer referred to in section 2.4. Restrictions of insurance against loss of or damage to property or loss in respect of mortgage loan
No person, whether as insurer or insured, shall within or outside the Republic enter into an insurance contract in terms of which the insurer assumes the obligation in respect of property situated in the Republic, including the territorial waters of the Republic, to indemnify, in terms of the policy issued by virtue of such contract, the owner of such policy against loss of or damage to property, or against loss in respect of a mortgage loan, including consequential loss referred to in section 2(a), unless—5. Offences
Any person contravening the provisions of section 4 shall be guilty of an offence and liable on conviction to a fine not exceeding R10 000 or to imprisonment for a period not exceeding two years or to both such fine and such imprisonment.6. Repeal of laws and savings
7. Short title
This Act shall be called the Reinsurance of Damage and Losses Act, 1989.[short title substituted by section 5 of Act 65 of 1990]History of this document
29 June 1990 this version
30 May 1989
17 May 1989
Assented to