Consumer Act Protects the Insured - 25 Sep 2009 12:00
The new Consumer Protection Act, as its name suggests, promises to look out for the rights of the often exploited consumer and insurance companies must comply. Insurance companies have to re-evaluate their policy documents and contracts to make sure they are in line with the Act and not engaging in unfair business.
With more scope for liability, insurers have to increase the wording of their policies to cover almost every possible situation while still make their policies understandable to the layman. The Act sees the liability fall more heavily on the shoulders of insurers.
This means that while supplying a service, insurance companies must make sure that their clients are aware of all the risks and complete cover they are signing on for.
The Consumer Protection Act aims to set out uniform standards of consumer protection and to grant previously disadvantaged members of the market more rights. The act is set for inauguration in October 2010, giving insurers enough time to update their policies to protect them from the increased liability. The act will give consumers more ground for recourse in courts as a result of ambiguity in documents.
* Information sourced from Business Day.
The new Consumer Protection Act, as its name suggests, promises to look out for the rights of the often exploited consumer and insurance companies must comply. Insurance companies have to re-evaluate their policy documents and contracts to make sure they are in line with the Act and not engaging in unfair business.
With more scope for liability, insurers have to increase the wording of their policies to cover almost every possible situation while still make their policies understandable to the layman. The Act sees the liability fall more heavily on the shoulders of insurers.
This means that while supplying a service, insurance companies must make sure that their clients are aware of all the risks and complete cover they are signing on for.
The Consumer Protection Act aims to set out uniform standards of consumer protection and to grant previously disadvantaged members of the market more rights. The act is set for inauguration in October 2010, giving insurers enough time to update their policies to protect them from the increased liability. The act will give consumers more ground for recourse in courts as a result of ambiguity in documents.
* Information sourced from Business Day.