On 28 September 2018, the Financial Sector Conduct Authority, published amendments to the Policyholder Protection Rules ("PPRs") made under the Long-term Insurance Act, 52 of 1998 and the Short-term Insurance Act, 53 of 1998 ("Amended PPRs").

The Amended PPRs inter alia:

  1. provide for microinsurance and funeral policy product standards, which standards take effect on 1 October 2018. Of import, the Amended PPRs under the Long-term Insurance Act, 52 of 1998 provide for a transitional period in respect of funeral policies (i.e. policies which fall in the funeral class of life insurance business) entered into before 1 October 2018. Such funeral policies have until 1 July 2021 to comply with the said product standards;
  2. provide for certain conduct of business related requirements, which in view of the commencement of Schedule 1 of the Insurance Act, 18 of 2017 (“Insurance Act”) are repealed from the Long-term Insurance Act, 52 of 1998 and the Short-term Insurance Act, 53 of 1998; and
  3. align the PPRs with the Insurance Act, including amending certain definitions and including new definitions in the PPRs.

The Amended PPRs, subject to certain transitional provisions, will take effect on 1 October 2018.

The table below sets out a summary of the Rules which take effect on 1 October 2018:

Rule in terms of the PPRs under the LTIA: Description of the section
Rule 2A Microinsurance and funeral policy product standards
Rule 7.1(f) to (i) and 7.3 Certain void provisions and the validity of contracts
Rule 11.5.1(j), 11.5.2 and 11.5.4 Disclosure after inception of the policy
Rule 15A Payment of premiums
Rule 21 Misrepresentation
Rule in terms the PPRS under the STIA: Description of the section
Rule 2A Microinsurance product standards
Rule 11.5.3 and 11.5.4 Disclosure after inception of the policy

Click here to access a copy of the Amended PPRs under the LTIA.

Click here to access a copy of the Amended PPRs under the STIA.