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Tag Archives | Insurance

Insurance claim

High Court judgment ‘is a caution to insureds who seek to obstruct an insurer’s access to information’

In what is a rare win for an insurer in recent times, the Gauteng High Court’s judgment in Musa v King Price Insurance Co on 9 May highlights the importance of insureds abiding by their claims-cooperation obligations. The court’s decision will provide some welcomed relief to insurers that frequently encounter uncooperative insureds and serve as […]

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commission

Regulating insurance commission has failed dismally since 1977

The fallacy that insurance commission is the root of all evil has led to numerous failed attempts to regulate it. Dr Brian Benfield, a retired professor from Wits’ Department of Economics, holds nothing back in a hard-hitting article in Biznews titled Insurance commission price-fixing: An ignominious and damaging failure. The initial Retail Distribution Review (RDR) […]

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objections

How intermediaries can overcome client objections

When it comes to finance, we assume people are rational, so we give people more information and longer documents and explain the actuarial principles in the hope that they will result in their making more rational decisions. However, from an insurance perspective, people do not make decisions that we would regard as rational, so giving […]

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insurance-premium

FSCA is concerned about life insurance premium increases

The FSCA says it will continue to ensure that insurers adopt “a fair and balanced approach” towards premium increases, while taking into account the valuable role the insurance industry has played in difficult economic circumstances. The Ombudsman for Long-term Insurance saw a 48% increase in the number of complaints related to policy lapses last year, […]

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eskom

Santam phasing out BI cover for power cuts

Santam, South Africa’s leading non-life insurer, issued an “operational circular” on 15 March that could have a significant impact on commercial clients’ existing cover for business interruption resulting from extended cover for losses emanating from public utilities and/or public telecommunications. It appears that the aftershock of claims emanating from Covid-19 resulted in a review in […]

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vehicle-accident

Insurers making increasing use of ‘reckless driving’ clause to reject claims

Insurers are disputing or rejecting an increasing number of motor vehicle accident claims on the grounds that the insured was speeding, and consumers should be made aware of the implications of the reasonable precautions clause in their policies, the Ombudsman for Short-term Insurance (Osti) says. The clause requires that the insured must use all reasonable […]

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