Short-Term Insurance Act, 1998 (Act No. 53 of 1998)Policyholder Protection RulesPolicyholder Protection Rules (Short-Term Insurance), 2017Chapter 3 : ProductsRule 4 : Cooling-Off Rights |
| 4.1 | For purposes of this rule a reference to the "variation" of a policy or a "varied" policy only includes a variation requested or initiated by the policyholder. |
| 4.2 | A policyholder may where a policy has a term longer than 31 days and no benefit has yet been paid or claimed or an event insured against under the policy has not yet occurred, with 14 days after the date of receipt of the policy contract following the entering into of a new policy or variation of an existing policy, or from a reasonable date on which it can be deemed that the policyholder received the policy contract, cancel the policy entered into with the insurer by way of a cancellation notice to the insurer. |
| 4.3 | All premiums or moneys paid by the policyholder to the insurer up to the date of receipt of the notice referred to in rule 4.2 or received at any date thereafter in respect of the cancelled or varied policy must be refunded to the policyholder, subject to the deduction of the cost of any risk cover actually enjoyed. |
| 4.4 | An insurer must comply with the request for cancellation received from a policyholder in accordance with rule 4.2 no later than 31 days after the insurer receives the cancellation notice. |
| 4.5 | An insurer must ensure that, where the policyholder is a group scheme in which member participation is voluntary, the policy places an obligation on that policyholder to afford every member thereof a right to end participation in the group scheme equal to the right afforded to a policyholder to cancel a policy in accordance with rules 4.2 and 4.3. |
| 4.6 | This rule only applies to new policies and variations of existing policies. |