On 1 July 2019, certain rules in the Policyholder Protection Rules ("PPRs"), as made under the Long-term Insurance Act 52 of 1998 and the Short-term Insurance Act 53 of 1998, relating to the claims and complaints management requirements will commence in relation to Group Schemes, and rules relating to all insurers' duty of disclosure after the inception of a policy will also commence.
While the majority of the amended PPRs commenced on 28 October 2018 ( click here to view article on the commencement of the amended PPRs), provision was made for certain rules to take effect on later dates.
As of 1 July 2019, the following Rules will come into effect:
- In relation to short-term insurance, Rule 11.5.2, which provides that all information which must be provided to a policyholder in terms of Rule 11.5.1 must be provided in a format that is clearly distinguishable from the policy
- In relation to both short-term and
long-term insurance, the following rules become effective for Group
- Rule 17, which provides inter alia that an insurer must establish and maintain a claims management framework, in accordance with the requirements set out therein, will apply to Group Schemes, in that the definition for a "policyholder" for this Rule extends to members of a Group Scheme
- Rule 18, which provides inter alia that an insurer must establish and maintain a complaints management framework, in accordance with the requirements set out therein, will apply to Group Schemes, in that the definition for a "complainant" for this Rule extends to members of a Group Scheme
Insurers, and in particular Group Schemes, should take note of the commencement and application of these Rules, and their impact on the obligations of insurers and Group Schemes towards policyholders and members.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.