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:
- 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;
- 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requirements, which in view of the commencement of Schedule 1 of the Insurance Act, 18 of 2017 (“Insurance Act”) are repealed from the Long-term Insurance Act, 52 of 1998 and the Short-term Insurance Act, 53 of 1998; and
- 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 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.