It has come to the attention of the Central Bank of Lesotho that there are some members of the public who are illegally soliciting insurance business for the South African Insurance Companies. Members of the public are notified that this practice is in contravention with Section 50(1) of the Insurance Act 1976 and the implementing Regulations 1985.

The public is also notified that there are some licensed Insurance Brokers who solicit insurance business in Lesotho, and transfer such to South African insurance Companies operating in South Africa. This practice is in contravention with Section 54(3) of the Insurance Act.

The public is further made aware that should they encounter problems with these South African Companies, the Central Bank of Lesotho as Commissioner of Insurance will not provide protection as the Companies are not answerable to it.

 5 June 2008