Insurance Broker Contract Template for South Africa

The Insurance Broker Contract is a crucial document used to formalize the relationship between licensed insurance intermediaries and their clients in South Africa. This agreement is essential for compliance with the Financial Advisory and Intermediary Services (FAIS) Act and related financial sector regulations. The contract typically details the scope of broking services, including risk assessment, insurance placement, claims support, and ongoing policy management. It incorporates mandatory regulatory requirements such as disclosure obligations, professional indemnity coverage, and conduct standards. Used across various industries, this document protects both parties' interests while ensuring adherence to South African financial services legislation.

1. Parties: Identification of the Insurance Broker and the Client, including full legal names, registration numbers, and physical addresses

2. Background: Context of the agreement, including broker's FAIS license details and authority to provide insurance intermediary services

3. Definitions: Key terms used in the agreement, including regulatory terminology from FAIS Act and Insurance Act

4. Appointment and Scope of Services: Formal appointment of broker and detailed description of insurance intermediary services to be provided

5. Broker's Obligations: Regulatory and professional obligations including FAIS compliance, disclosure requirements, and duty of care

6. Client's Obligations: Client's responsibilities including information disclosure, premium payments, and cooperation requirements

7. Remuneration: Broker's compensation structure, including commission, fees, and disclosure requirements under FAIS

8. Professional Indemnity: Broker's professional indemnity insurance requirements and coverage details

9. Confidentiality: Confidentiality obligations and compliance with POPIA requirements

10. Duration and Termination: Term of agreement, renewal provisions, and termination circumstances

11. General Provisions: Standard contractual terms including notices, amendments, and governing law