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The January 2016 determination of the Ombud for Financial Service Providers in Johannes William van Breda v Alesio Mogentale & Another is a good reminder of the powers of the Ombud where an FSP fails to respond to a complaint made against it. The complaint arose from a failed investment into a product known as Bondcare, where the complainant had invested his life savings following advice from the intermediary. The basis of the complaint was…
Subject to the provisions of the policy, the fact that a loss or occurrence insured against is caused by the insured’s negligence is irrelevant. This applies to all negligent acts, even those that are grossly negligent. It also holds true for so-called reckless conduct, if the recklessness involved is nothing other than gross negligence. The March 2016 Briefcase from the Ombud for Short-Term Insurance refers to an interesting case study, where a Ms S reported…
The December 2015 determination of the Ombud for Financial Service Providers in De Hoop Steenwerwe v Finmar Makelaars reminds us of the duties imposed on FSPs by the FAIS Act and the FAIS General Code. Central to the complaint in this case was the FSP’s failure to update the sum insured under the business interruption section of a policy taken out by the complainant. As a result, the complainant was underinsured, resulting in the insurer applying…
Africa’s largely untapped specialty lines insurance market has significant opportunities for insurers willing to enter the region. As the market develops, more difficult and unusual risks will be written. Regulations which vary by country must be considered. For example, placing insurance with a locally licensed insurer is often a requirement or a percentage of the insurer may have to be locally owned. Therefore partnering with local insurers is an option. Apart from local ownership, issues…
Africa’s largely untapped specialty lines insurance market has significant opportunities for insurers willing to enter the region. As the market develops, more difficult and unusual risks will be written. Regulations which vary by country must be considered. For example, placing insurance with a locally licensed insurer is often a requirement or a percentage of the insurer may have to be locally owned. Therefore partnering with local insurers is an option. Apart from local ownership, issues…
The March 2016 ruling of the ombud for financial services providers in Khoza v Bensure Management Services  is worth reading because it reminds us of an FSP’s obligations regarding an amendment to a policy and the meaning of the word “event”. The complainant took out a Journey policy through the FSP which entitled her to cover of R30 000 for an “insured event which is an unexpected illness, disease or accident suffered by the insured which…