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Always obtain and capture all the client information

FAIS Ombud Settlement – Always obtain and capture all the client information

One of the settlements discussed in the latest FAIS Ombud Annual report also puts the emphasis on the disclosure of client information.

Disclosure of medical conditions

Mr O purchased a credit protection policy subsequent to having bought a vehicle. The main purpose of the policy was to cover his monthly payments in the event of death, permanent disability or retrenchment. Eight months after the commencement of the policy Mr O suffered a stroke and was rendered disabled.

His claim was rejected as the insurer claimed that the cause of the disability was linked to a prior condition. The policy included a 24-month waiting period on pre-existing medical conditions. Mr O was not aware of this waiting period, but did however disclose all his medical conditions to the representatives, who failed to capture this on the application form.

Mr O approached the FAIS Ombud’s office, who contacted the respondent to provide evidence as per the General Code of Conduct provisions. The decision was revised and the claim was settled in full.

Tip for advisers

Always obtain all relevant information from your client and offer advice as well as product recommendations that is appropriate to the needs and circumstances of your client.

Click here to read more about the settlement.

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