Do you know how you are protected when taking out short term car insurance? Remember, you don't have to simply accept what your insurance provider bills you. You have the right to query anything that may seem irregular.
1. Short-Term Insurance Act (Act 53 of 1998 as amended)
What Does This Mean?
As a consumer, you are protected against irregular activity from your short-term insurer and intermediaries. You also have the right to query your monthly premiums if they increase or you experience any other issue with your service provider.
2. Policyholder Protection Rules 2004
In terms of the rules, an insurer must inform the consumer, in writing, of a policy issued to them. The insurer must advise the consumer of any internal complaint resolution systems and procedures. This, as well as full particulars relating to the short-term and long-term insurance ombudsmen. No insurer may ask or induce a consumer to waive their rights in terms of the rules. If they do give any such waiver, it will be regarded as void. No insurer or intermediary may allow a consumer to sign a blank or partially completed form necessary for entering into a policy. If you feel like your insurance provider has not informed you of the above, you can contact the Ombudsman for Short Term Insurance (OSTI). It is recommended to first bring up the issue with your insurance provider, after which you may contact OSTI to resolve the issue.
OSTI Recommends Taking These Steps First:
What Happens If You Are Still Not Happy With The Insurer's Decision?
3. Financial Advisory And Intermediary Services Act 37 of 2002
This act was introduced to regulate the rendering of certain financial advisory and intermediary services to clients.
The FAIS Act Deals With:
Subordinate Legislation To FAIS:
It is illegal for anyone who has not applied to the Financial Services Board to be licensed as a financial service provider, to give a consumer financial advice, or sell a financial product. This law protects the consumer from inappropriate financial advice, and consumers can take action if they are given bad advice. If a consumer receives inappropriate advice, or if a financial service provider (FSP) or FSP representative has not followed the proper procedures, the consumer is entitled to complain to the Ombud for Financial Service Providers. A determination by the Ombud is legally binding.
4. Financial Services Ombud Schemes Act 37 of 2004
It is in your best interests to know your rights when it comes to your short term insurance. If you are unhappy with your premiums or how much your monthly fee increased this year, take OSTI's advice and approach your insurance provider to query and break down the exact reasons for your cost. If this can not be resolved, approach the Ombudsman for Short Term Insurance to resolve the matter.