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requirements, which in view of the commencement of Schedule 1 of the Insurance Act, 18 of 2017 ("Insurance Act") are repealed from the Long-term Insurance Act, 52 of 1998 and the Short-term Insurance Act, 53 of 1998; and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 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.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
