Short-Term Insurance Act, 1998 (Act No. 53 of 1998)Policyholder Protection RulesPart IV : Void Provisions and Format9. Void provisions |
| 9.1) | A provision of a policy of which the effective date of the entering into thereof is a date on or after a date 90 days after the date referred in section 55(5) of the Act, is void to the extent that it provides expressly or by implication- |
| a) | that before a claim under the policy is considered by the insurer, the policyholder must undergo a polygraph, lie detector or truth verification, 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 and which is conducted under the control of the insurer or such other person; |
| b) | for an inducement of any nature for a policyholder to voluntarily agree to undergo a test or procedure envisaged in paragraph 9.1(a) where the policyholder submits a claim under the policy; |
| c) | that where a policyholder under other circumstances than those contemplated in paragraph 9.1(b) voluntarily agrees to undergo a test or procedure envisaged in paragraph 9.1(a) where the policyholder submits a claim under the policy, and the policyholder fails to pass such 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. |
| 9.2) | Paragraph 9.1 shall not be construed as voiding 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. |