FAIS ACT
The Financial Advisory and Intermediary Services Act, no. 37 of 2002 was implemented in 2004. You will notice the abbreviation FAIS is regularly used. This act has brought about strict regulation that all financial businesses such as banks and insurance companies must adhere to. The main purpose of the act was to protect the public against unscrupulous financial services providers.
In terms of FAIS all short term insurance companies, which include car insurance companies, must be licensed and abide by the laid-down regulations. When you take out car insurance confirm that the company, agent or broker is FAIS compliant. You are entitled to request a copy of the FAIS license which you can verify with the Financial Services Board (FSB) at 0800 202 087 or on their website www.fsb.co.za.
The FAIS act has laid down minimum specifications for the information that the insurance company must provide you with. The details refer to your car insurance policy, premium details and details of the short-term Insurance Ombudsman. Should you not be happy with the service you receive from your car insurance company you have the right to contact the ombudsman for advice. This service is available free of charge. Before you contact the ombudsman’s office you should first try to resolve the matter with your insurance company.