FAIS ACT DISCLOSURE NOTICE IMPORTANT – PLEASE READ CAREFULLY DISCLOSURE AND OTHER LEGAL REQUIREMENTS RELATED TO PERSONAL LINES AND COMMERCIAL INSURANCE BUSINESS
(This notice does not form part of the Insurance Contract or any other document)
As a short-term insurance policyholder, or prospective policyholder, you have the right to the following information:
About your financial services provider (intermediary/broker)
Name, address and contact details of the intermediary/broker.
Legal status of the intermediary/broker.
Whether services are rendered under supervision.
Whether the intermediary/broker holds more than 10% of the insurer’s shares and/or
Whether the intermediary/broker received more than 30% of total remuneration from the insurer in the past year.
Whether the intermediary/broker holds any form of professional indemnity insurance.
Details of intermediary/broker’s complaints policy and procedure.
Details of intermediary/broker’s compliance arrangements.
Rand amount of fees, commissions or any valuable consideration payable.
Contractual arrangement with the insurer including any restrictions or conditions.
The intermediary/broker must hold a valid license to operate under that specific category of business.
About the insurer
Name, physical address, postal address and contact details of product supplier.
Details of the legal compliance department of the insurer.
Details of how to institute/submit a claim and/or complaint.
Type of policy involved.
Extent of premium obligations you assume as policyholder.
Manner of payment of premium, due date of premiums and consequences of non-payment.
Details of the complaints resolution procedure of the product supplier.
Other Matters of importance
You must be informed of any material changes to the information referred to in paragraph 1 and 2.
If the information in paragraphs 1 and 2 was given orally, it must be confirmed in writing within 30 days.
If any complaint to the intermediary or insurer is not resolved to your satisfaction, you may submit the complaint to the FAIS Ombud.
Polygraph or any lie detector test is not obligatory in the event of a claim and the failure thereof may not be the sole reason for repudiating a claim.
If premium is paid by debit order, the debit order must be in favour of either the intermediary or the product supplier. It may also not be transferred without your approval.
The insurer must inform you at least 30 days before the cancellation thereof, in writing, of its intention to cancel your 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. There is an obligation to make sure the notice has been sent to you.
You are entitled to a copy of the policy free of charge.
In the case of a repudiated (rejected) claim, representations made to the relevant insurer must be within a period of not less than 90 days from the date of the relevant decision.
A policy must contain a provision for a period of grace for the payment of premiums of not less than 15 days after the relevant due date. In the case of a monthly policy, this provision must apply with effect from the second month of the currency of the policy.
Do not sign any blank or partially completed application form.
Complete all forms in ink.
Keep all documents handed to you and make notes of what is said to you.
Ask for a letter of representation from your adviser and do not be pressurized to buy the product.
Incorrect or non-disclosure by you of relevant facts may influence an insurer on any claims arising from your contract of insurance.
Particulars of the Short-term Insurance Ombudsman who is available to advise you in the event of claim problems on personal lines policies resolved by the insurer:
Mr. H. van Zijl, PO Box 32334, Braamfontein 2017, Tel: (011) 726-8900, Fax: (011) 726-5501.
Particulars of the Registrar of Short-term Insurance
Financial Service Board, PO Box 35655, Menlo Park 0102, Tel: (012) 428 – 8000, Fax: (012) 347 – 0221