Insurance Regulations
Insurance and its associated activities of Brokers, Agents, Assessors and Risk Managers are regulated activities in Lesotho. The Regulatory Authority is the Central Bank of Lesotho, the full details of which can be found in our most Recent Insurance Act published in September 2014.
Insurance broking services in Lesotho must be through a insurance broker registered in Lesotho.
Tax Implications
Lesotho registered companies that purchase insurance from insurance companies not registered in Lesotho will find that the Lesotho tax act prohibits these premiums as a deductible expense.
Vat
The insurance Industry is exempt from vat in Lesotho
Compulsory Insurance
Workman’s Compensation insurance is compulsory insurance in Lesotho for employers. This insurance provides for Death and Injury to the Employee and Liability cover for the Employer.
Professional Indemnity Insurance is compulsory for Insurance Brokers
Excluded Insurance
Damage as a result of politically motivated riots is excluded from all covers in Lesotho unless purchased specifically
Non-political Riots, Strikes and malicious damage is generally included if requested without additional premium costs
