Short-Term Insurance Act, 1998 (Act No. 53 of 1998)Policyholder Protection RulesPolicyholder Protection Rules (Short-Term Insurance), 2017Chapter 3 : ProductsRule 7 : Void Provisions |
| 7.1 | A provision of a policy is void to the extent that it provides expressly or by implication— |
| (a) | that in connection with any claim made under the policy, the policyholder or claimant may be obliged to undergo a polygraph, the policyholder or claimant may be obliged to undergo a polygraph, lie detector or truth verification test, or any other similar test or procedure which is furnished or made available by the insurer or any other person in terms of an arrangement with the insurer or any other person in terms of an arrangement with the insurer and which is conducted under the control of the insurer or such other person; |
| (b) | for an inducement of any nature for a policyholder or claimant to voluntarily agree to undergo a test or procedure envisaged in paragraph (a); |
| (c) | that where a policyholder or claimant under other circumstances than those contemplated in paragraph (b) voluntarily agrees to undergo a test or procedure envisaged in paragraph (a) of this rule, and the policyholder or claimant fails to pass such a test, the claim will be repudiated or the policy will become void merely as a result of such failure to pass the test or procedure; |
| (d) | that in the event of any dispute arising under the policy, the dispute can only be resolved by means of arbitration; |
| (e) | that an insurer may repudiate a claim because a premium was not paid on the due date, if payment was made during a period referred to in rule 15, whether or not the payment was made prior to the event giving rise to the claim. |
| 7.2 | Rule 7.1(d) shall not be construed as rendering void a provision of a policy that the parties may, after a dispute under the policy has arisen, voluntarily agree to submit the dispute to arbitration or, in the absence of such a provision, as voiding any agreement between the parties to that effect. |