Short-Term Insurance Act, 1998 (Act No. 53 of 1998)Policyholder Protection RulesPart III : Details of Disclosure5. Obligatory disclosures |
| 5.1) | An independent intermediary before dealing with a policyholder in respect of an insurance transaction shall ensure that at least the following disclosures, where applicable, are made once to the policyholder: |
| a) | full names, titles or designations, postal and physical addresses of the independent intermediary's head office and issuing office, and telephonic and electronic numbers, communication details of contact persons; |
| b) | the status and relationship with the insurer involved and proof of authority or mandate to act, including whether more than 10% shares are held directly or indirectly in the insurer, whether they are affiliated companies and whether more than 30% of business is placed with any particular insurer in any one year; |
| c) | whether they hold professional indemnity insurance and, if so, the name of the underwriting insurer and the limit (if any) of any such indemnity; |
| d) | details of required claims notification procedures; and |
| e) | the amount of the consideration referred to in section 48 of the Act accruing to the independent intermediary in respect of the relevant entering into or variation of the policy concerned, and of any fee contemplated in section 8(5) of the Act (if any); |
| 5.2) | An insurer shall ensure that it makes at least the following disclosures to the policyholder, as soon as is practical after an insurance transaction is initiated: |
| a) | full registered name and abbreviation name, postal and physical addresses of the head office and issuing office, telephonic and electronic numbers, and communication details of contact persons; |
| b) | details of procedures (if any) for the resolution of complaints by policyholders, including complaints in respect of independent intermediaries or representatives involved; |
| c) | claims notification procedures; |
| d) | name, class or type of policy involved; |
| e) | nature and extent of monetary obligations assumed by the policyholder, manner of payment of premiums and the consequences of non-payment of such premiums; |
| 5.3) | As regards the policy involved, an insurer shall ensure that it makes at least the following disclosures to the policyholder, as soon as is practical after an insurance transaction is initiated, including, where applicable, its variation: |
| a) | name, class or type of policy involved; |
| b) | nature of benefits for the policyholder, manner of deriving or obtaining thereof, and manner of payment or furnishing of benefits, as the case may be; |
| c) | nature and extent of monetary obligations assumed by the policyholder, manner of compliance therewith and consequences of non-compliance; |
| d) | loadings, excesses payable, exclusions or other special terms or conditions. |
| 5.4) | A document containing the suggested key features is annexed as Annexure 1 to these Rules. |