Insurers code of conduct and the FAIS - 26 Feb 2010 15:41
According to the Financial Advisory and Intermediary Services Act no. 37 of 2002 (FAIS), financial service providers such as banks and insurers must respect the rights of consumer. The FAIS prevents such institutions from unscrupulous behaviour or conduct. In terms of this act, short-term insurance companies, such as those direct insurers that provide car and home insurance, must be licensed and abide by the regulations of the Act.
If insurers fail to abide by the regulations, insureds have recourse for action against them and can take the matter involving the unfair practice to the FAIS Ombud who will then assess the case and make a ruling. Each insured is entitled to request a copy of the FAIS license of his or her insurance company or they can call the Financial Services Board (FSB) on 0800 202 087 to determine whether or not a possible insurer is registered provider.
According to the act, your insurer is to provide you with certain information pertaining to your contract with them. You are entitled to a copy of your insurance policy which stipulates your premiums, the terms of the contract and the details of the Ombudsman for Short-term Insurance (OSTI). If you suspect your insurer of dealing unfairly with you, you have the right to contact the OSTI to resolve the matter.
First though, you need to attempt to resolve the matter with your insurer. I that fails, lay a formal complaint and take the complaint number to the Ombudsman for mediation.
According to the Financial Advisory and Intermediary Services Act no. 37 of 2002 (FAIS), financial service providers such as banks and insurers must respect the rights of consumer. The FAIS prevents such institutions from unscrupulous behaviour or conduct. In terms of this act, short-term insurance companies, such as those direct insurers that provide car and home insurance, must be licensed and abide by the regulations of the Act.
If insurers fail to abide by the regulations, insureds have recourse for action against them and can take the matter involving the unfair practice to the FAIS Ombud who will then assess the case and make a ruling. Each insured is entitled to request a copy of the FAIS license of his or her insurance company or they can call the Financial Services Board (FSB) on 0800 202 087 to determine whether or not a possible insurer is registered provider.
According to the act, your insurer is to provide you with certain information pertaining to your contract with them. You are entitled to a copy of your insurance policy which stipulates your premiums, the terms of the contract and the details of the Ombudsman for Short-term Insurance (OSTI). If you suspect your insurer of dealing unfairly with you, you have the right to contact the OSTI to resolve the matter. First though, you need to attempt to resolve the matter with your insurer. I that fails, lay a formal complaint and take the complaint number to the Ombudsman for mediation.