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Liquidation of Saxum Insurance

On Friday, 28 October 2016, the FSB published a five page document to inform policyholders of the liquidated insurer and how this will affect them.

Whilst most of the questions and answers deal with practical aspects of the situation, the following two may be of concern to advisers:

Q: Can I sue my broker to pay my claim since he advised me to place my insurance with SaXum?

A: We recommend that you obtain professional legal advice to understand your rights and options in this regard. Alternatively, you may contact the Office of the Ombud for Financial Services Providers (FAIS Ombud) for assistance.

Q: Can I sue SaXum for failing to disclose their financial situation while still accepting my insurance premiums?

A: We recommend that you obtain professional legal advice to understand your rights and options in this regard. Please note that now that the liquidation order has been granted, all civil proceedings against SaXum are suspended.

Some of other questions are:

  • What is the FSB doing to protect policyholders who are affected by the liquidation?
  • I have an outstanding claim with SaXum. My vehicle is currently at the panel beater. They are refusing to release my vehicle. What do I do? What do I do about panel beaters who are threatening to sell my vehicle? They have given us the option to settle the amount directly with them and then claim back from SaXum. Is this possible?
  • When will the liquidator be appointed? How long does the liquidation procedure take? When will my claim get paid? If I submit all my documentation to the liquidator, will I definitely get my claim paid out in full?
  • Who do I contact to get my claim paid? Will the FSB submit my claims documentation for me? What documents are required for me to get my claim settled by the liquidator? Will the liquidator get in touch with policyholders who have outstanding claims?
  • Why are insurance premiums still being deducted from my account if the insurer is insolvent? How can I get my premiums back if the insurer cannot settle my claims?
  • Why have I been asked to pay an excess if the insurer will not be settling my claim? Can I get my excess payment back?
  • Does this mean that I no longer have insurance cover? How can I cancel my insurance cover with SaXum? Who is my new insurer?
  • My vehicle has been written off but my claim has not yet been settled. I am still paying the bank the finance on my vehicle and cannot afford to buy a new one. Can the FSB resolve my issue with the bank?

Policyholder queries should be directed to Ms Farzana Badat, Head: Insurance Compliance Department, telephone 012 428 8121 or email FSB.INSSaxumQueries@fsb.co.za.

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