We received two media releases from the FSB this week.
In the first, The Lawyers Voice (Pty) Limited (“Lawyers Voice”) marketed and sold three different insurance policies which were not underwritten by a registered insurer between 1 November 2008 and 30 April 2013.
As a mitigating circumstance, the Registrar considered the fact that Lawyers Voice put measures in place to rectify the contravention by securing a registered insurer to underwrite business submitted from 1 May 2013.
Consequently, the Registrar agreed to a penalty of R600 000.
The second case concerned transgressions by Santam of certain sections of the Short-term Insurance Act and its regulations. After taking various mitigating circumstances into account, the Registrar agreed to a penalty of R200 000, which was imposed by the Enforcement Committee on Santam on 1 July 2013.
Perhaps these cases are a timely warning to all of us to stay alert, and to make sure that our systems and procedures are in place and up to date.