Insurance code of conduct holds insurers accountable - 10 May 2010 15:08
The South African Insurance Association (SAIA) has drawn up a new code of conduct for insurance companies, which purposes to improve transparency regarding policy processes and procedures. The new code of conduct attempts to get insurers to treat their consumers more fairly, something the new Consumer Protection Act (CPA) will force all insurers to do.
More applicable to insurers than the CPA, the new code of conduct will see insurers help consumers determine the correct amounts for home and contents insurance, help you pay your premiums and perform reliable repairs on your car and home.
The SAIA’s new code of conduct holds its members (80 percent of the short-term insurance market), more accountable in their dealings with their consumers. This means that insurers will have to be forthcoming about the amount of premiums. For example, contents insurance premiums should increase each year as the cost to replace goods increases. Car insurance premiums should come down after you’ve turned 25 and each year as the value of the car depreciates. These are things insurers will have to bring to their consumers’ attention instead of w
aiting for consumers to contact them, as is traditionally the case.
According to the Ombudsman for short-term insurance (OSTI), the new code of conduct will be put into effect when dealing with complaints. That means that should an insured complain about his or her insurer, the Ombudsman will determine if the insurer was informative and transparent enough in its dealing with the consumer. This encourages more insurers to adopt the code within their own ranks.
The South African Insurance Association (SAIA) has drawn up a new code of conduct for insurance companies, which purposes to improve transparency regarding policy processes and procedures. The new code of conduct attempts to get insurers to treat their consumers more fairly, something the new Consumer Protection Act (CPA) will force all insurers to do.
More applicable to insurers than the CPA, the new code of conduct will see insurers help consumers determine the correct amounts for home and contents insurance, help you pay your premiums and perform reliable repairs on your car and home.
The SAIA’s new code of conduct holds its members (80 percent of the short-term insurance market), more accountable in their dealings with their consumers. This means that insurers will have to be forthcoming about the amount of premiums. For example, contents insurance premiums should increase each year as the cost to replace goods increases. Car insurance premiums should come down after you’ve turned 25 and each year as the value of the car depreciates. These are things insurers will have to bring to their consumers’ attention instead of w
aiting for consumers to contact them, as is traditionally the case. According to the Ombudsman for short-term insurance (OSTI), the new code of conduct will be put into effect when dealing with complaints. That means that should an insured complain about his or her insurer, the Ombudsman will determine if the insurer was informative and transparent enough in its dealing with the consumer. This encourages more insurers to adopt the code within their own ranks.