Short-Term Insurance Act, 1998 (Act No. 53 of 1998)Policyholder Protection RulesPart V : General11. Additional duties of insurers and independent intermediaries |
| 11.1) |
| a) | Subject to paragraph 11.1(b), an insurer must, where an agreement is to be entered into with an independent intermediary for the rendering of services as independent intermediary, furnish the independent intermediary with a written mandate or authority to act on behalf of the insurer, setting out the terms and conditions of such mandate or authority. |
| b) | An insurer must in the case of an agreement contemplated in paragraph 11.1(a) existing immediately prior to the date referred to in section 55(5) of the Act, and which does not contain any written mandate or authority contemplated in paragraph 11.1(a), within 30 days after the said date furnish such independent intermediary with such written mandate or authority. |
| 11.2) | An insurance party involved— |
| a) | shall ensure that any debit order to be signed by a policyholder on or after a date 30 days after the date referred to in section 55(5) of the Act, for the payment of premiums to any such party, shall not be drafted to be in favour of any other person (whether conjointly with the insurance party involved or as an alternative) but such first mentioned party; |
| b) | shall not unilaterally terminate any current debit order signed by a policyholder without having informed the policyholder in writing of the intention so to terminate the debit order at least 30 days before the effective date of such envisaged termination. |
| 11.3) | An insurer shall not— |
| a) | unilaterally terminate any policy without informing the policyholder in writing at least 30 days before the date on which such termination is to become effective, of such termination; |
| b) | terminate any policy merely by giving notice thereof to an independent intermediary involved in the policy. |
| 11.4) | An insurer shall ensure that where any decision has been made as to the repudiation of any claim under a policy, or as regards the quantum of a claim which is in dispute, the policyholder concerned is in writing informed of the reasons for the decision and that the policyholder may within a period of not less than ninety days after the date of the relevant decision make representations to the relevant insurer in respect of such decision. |
| 11.5) | An insurer shall ensure that a policy to be entered into on or after a date 90 days after the date referred to in section 55(5) of the Act, contains a provision for a period of grace for the payment of premiums of not less than 15 days after the relevant due date: Provided that in the case of a monthly policy, such provision must apply with effect from the second month of the currency of the policy. |