Policy Terms and Conditions

This policy provides protection against financial losses resulting from the cancellation of client insurance policies, which leads to a loss of commission income for the insured broker. When a covered client cancels their policy, Buffer will pay out one month's worth of lost commission, up to a maximum of your chosen cover limit (R5,000, R15,000, or R50,000) per claim, to assist the broker in maintaining financial stability until a replacement client is secured.

Coverage is available to registered short-term insurance brokers operating in South Africa who meet our eligibility criteria, including valid FAIS registration and a minimum period of broker experience.

The policy allows for up to 2 claims per calendar year, depending on your selected cover level. A mandatory waiting period of one (1) month from the policy activation date applies before any claim may be submitted.

Each claim must be for a different cancelled client. If you have 2 claims available, they must be used for two separate clients who have cancelled their policies. This ensures fair distribution of coverage across your client base and prevents multiple claims for the same client cancellation.

An extended waiting period of two (2) months applies if you cancel your policy and then reactivate it within the same calendar year. This extended waiting period helps prevent abuse of the system and ensures fairness for all brokers.

If you increase your cover limit (e.g., from R5,000 to R15,000, or from R15,000 to R50,000), a waiting period of one (1) month applies from the date of the increase before you can submit claims under the new higher limit. This waiting period ensures that the increased coverage is not used immediately after upgrading, maintaining the integrity of the protection fund.

Each claim must be submitted with the following documentation:

• A copy of the client's policy cancellation letter or broker appointment termination notice

• A commission statement showing the lost commission amount for that specific client

• Any other documentation as may be reasonably required by Buffer

Claims must be submitted within 30 days of the policy cancellation date. All claims are subject to review and approval by Buffer. Approved claims will be paid within 10 business days of approval, directly into your registered bank account.

Claims will only be approved if:

• The policy was cancelled while in good standing (client was up to date with premium payments)

• The cancellation was not due to fraud or misrepresentation by the broker

• The broker has complied with all policy terms and conditions

• The claim is submitted within the specified timeframes

Premiums are calculated based on your years of experience as a registered broker and your selected cover level (1 or 2 claims per year). Premiums range from R162 to RR1380 per month.

Premiums are payable monthly via card payment. The first monthly premium is automatically charged on the date of policy activation to your card on the details you provide to us. All subsequent premium payments will be collected on the 1st day of each month. After 12 premium collections (including the first payment on activation), your policy will automatically renew for another 12-month period.

If a premium payment fails, we will retry the collection. A second consecutive failed payment will result in automatic policy cancellation.

All premium amounts are inclusive of VAT where applicable. Premiums may be adjusted at policy renewal, subject to 30 days' written notice.

This policy does not cover losses arising from:

• Cancellations due to non-payment of premiums by the client (unless the client was in good standing at the time of cancellation)

• Cancellations resulting from fraud, misrepresentation, or misconduct by the broker

• Cancellations that occur during the waiting period

• Claims exceeding the maximum of 2 per calendar year

• Claims exceeding your chosen maximum cover limit per individual claim

• Cancellations that are part of a pre-arranged scheme or collusion

• Losses from clients who were not properly disclosed or were excluded from coverage

• Any indirect, consequential, or punitive damages

Policies can be cancelled anytime on your dashboard.

If you have used all your claims for the current policy period and choose to cancel, you will be charged a one-off payment for the remaining months until your next renewal date. This charge helps us maintain affordable premiums for all brokers and ensures we can continue paying out claims for the Buffer community. Your premiums contribute to the protection fund that supports all covered brokers.

If you have not used all your claims, no additional charges will apply upon cancellation.

Buffer may cancel your policy in the following circumstances:

• Non-payment of premiums (after two consecutive failed card payments)

• Fraud or misrepresentation in your application or claims

• Breach of policy terms and conditions

• Loss of FAIS registration or broker license

If a policy is cancelled due to non-payment and subsequently reactivated within the same calendar year, an extended 2-month waiting period will apply to prevent abuse of the system.

As the insured broker, you agree to:

• Provide accurate and complete information in your application and claims

• Maintain valid FAIS registration throughout the policy period

• Notify Buffer of any material changes to your circumstances (e.g., change of business structure, loss of license)

• Submit claims promptly and with all required documentation

• Cooperate fully with any claim investigations

• Not engage in any fraudulent activity or misrepresentation

• Comply with all applicable laws and regulations

Failure to meet these obligations may result in claim denial or policy cancellation.

The maximum payout per claim is determined by your chosen cover limit (R5,000, R15,000, or R50,000). Buffer will pay up to your chosen cover limit per claim, representing one month's worth of lost commission income. If your actual lost commission is less than your chosen limit, only the actual amount will be paid. The maximum total payout per calendar year depends on your chosen limit and number of claims (e.g., 2 claims × R50,000 = R100,000, 2 claims × R15,000 = R30,000, or 2 claims × R5,000 = R10,000).

Policies automatically renew on an annual basis unless cancelled by either party. At renewal, your claims allowance resets to zero, and you regain your full annual claim entitlement. You will receive a renewal notice at least 30 days before the renewal date, including any premium adjustments.

You may change your cover level (1 or 2 claims per year) at any time, with the new premium taking effect from the next billing cycle.

If you have a dispute regarding a claim denial, premium calculation, or any other aspect of your policy, you may:

1. Contact our customer service team at support@bufferprotect.co.za or +27 21 555 0101

2. Request a formal review of the decision

3. If still unsatisfied, refer the matter to the Ombudsman for Short-term Insurance (OSTI), the FAIS Ombud, or the Financial Services Tribunal, as applicable

All disputes will be handled in accordance with South African insurance law and FSCA regulations.

Buffer is currently not a registered insurer with the Prudential Authority. However, we have voluntarily obtained a Financial Service Provider licence (FSP 53052) and are fully regulated by the Financial Sector Conduct Authority (FSCA) for advice and intermediary services. This policy is governed by South African law and is subject to the jurisdiction of South African courts.

We maintain all required licenses and registrations to operate as a financial service provider in South Africa.

This policy schedule, together with the full policy terms and conditions (available upon request), constitutes the entire agreement between the parties. No modifications to this policy shall be valid unless made in writing and signed by both parties.

This policy is governed by the laws of South Africa. The insured acknowledges that they have read and understood all terms and conditions of this policy.

If any provision of these terms is found to be unenforceable, the remaining provisions will continue in full force and effect.

Buffer reserves the right to amend these terms and conditions, subject to 30 days' written notice to policyholders.

For questions about your policy, claims, or these terms and conditions, please contact us:

Email: support@bufferprotect.co.za

Phone: +27 21 555 0101

WhatsApp: +27 82 000 7788

Address: Buffer HQ, 3rd Floor, 80 Strand Street, Cape Town, 8001, South Africa

Business Hours: Monday to Friday, 08:00–17:00 SAST