Short-Term Insurance Act, 1998 (Act No. 53 of 1998)Policyholder Protection RulesPolicyholder Protection Rules (Short-Term Insurance), 2017Chapter 3 : ProductsRule 3 : Consumer Credit and Credit Life Insurance |
| 3.1 | Mandatory credit life insurance |
| 3.1.1 | A registered insurer must not provide a mandatory credit life insurance policy to a policyholder, unless that policy and the costs associated with that policy comply with any relevant credit life insurance regulations made by the Minister of Trade and Industry under section 171 of the National Credit Act. |
[Rule 3(3.1)(3.1.1) substituted by rule 6(c) of Notice No. 996, GG 41928, dated 28 September 2018]
| 3.1.2 | Rule 3.1.1 only applies to new policies. |
| 3.2 | Substitution of consumer credit insurance policy |
| 3.2.1 | An insurer must, where a policyholder or member of a group scheme informs that insurer, or the insurer otherwise should reasonably be aware, that the policyholder or member of a group scheme wishes to, or has, exercised the right under subsection 106(4)(a) of the National Credit Act to substitute any other consumer credit insurance or, in the case of a registered insurer, and other credit life policy with a policy issued by the insurer, assist the policyholder or member of a group scheme to, in relation to the substituted policy, to comply— |
| (a) | with any demands of a credit provider under section 106(6) of the National Credit Act; or |
| (b) | in respect of a registered insurer providing credit life insurance, with regulation 7 of the credit life insurance regulations made under the National Credit Act. |
[Rule 3(3.2)(3.2.1) substituted by rule 6(d) of Notice No. 996, GG 41928, dated 28 September 2018]
| 3.2.2 | An insurer must, where an insurer is aware that a policyholder or member of a group scheme has substituted any other consumer credit insurance with a policy issued by that insurer, in writing and within a reasonable time of being requested to do so by the credit provider confirm to the credit provider that the policy is in force and that the credit provider is recorded as the beneficiary, cessionary or loss payee on the policy. |