To enable clients to make informed
decisions about their insurance, the
Short-term Insurance Act now
incorporates the Policyholder
Protection Rules (PPR).
These rules compel brokers and
insurers to reveal certain
information to their clients. The
essence of the legislation is that
you must know who your broker and
insurer are at all times. This means
that the broker cannot switch your
policy to another insurer without
informing you of the decision in
writing. As a policyholder or
prospective policyholder, you have
the right to the following
information:
About the insurance broker:
- Name, physical and postal
address, and telephone number.
- Legal status and any
interest in the insurer.
- Whether or not he/she is in
possession of professional
indemnity insurance.
- Details of how to institute
a claim.
- Rand amount of fees and
commission payable.
- Written mandate to act on
behalf of the insurer.
About the insurer:
- Name, physical and postal
address, and telephone numbers.
- Telephone number and postal
address of the insurer's
compliance department.
- Details of how to institute
a claim and/or a complaint.
- Type of policy involved.
- Extent of premium
obligations you assume as a
policyholder.
- Manner of payment of
premium, due date of premiums
and consequences of
non-payment.
Other matters of importance:
- You must be informed of any
material changes to the
information regarding the
intermediary and the insurer.
- If this information was
given orally, it must be
confirmed in writing within 30
days.
- A polygraph or any lie
detector test is not obligatory
in the event of a claim and
failing a lie detector test may
not be the sole reason for
repudiating a claim.
- If the premium is paid by
debit order it may only be done
in favour of one person and may
not be transferred without your
approval. The insurer must
inform you, in writing, at least
30 days before of its intention
to cancel such a debit order.
- The insurer and not the
intermediary must give reasons
for repudiating your claim.
- Your insurer may not cancel
your insurance merely by
informing your intermediary. The
broker has an obligation to make
sure the notice has been sent to
you.
- You are entitled to a copy
of the policy free of charge.
