The Insurance Industry in South Africa is well regulated. The Financial Advisory & Intermediary Services Act (FAIS) Act 37 of 2002 made provision for the appointment of a Short Term Insurance Ombudsman. The office of the Ombud provides an independent complaints and dispute-resolution service to insured parties; it acts as a mediator between insured parties and the insurer.

Every insured party has the right to contact the office of the Insurance Ombudsman if they have an unresolved complaint or dispute with their insurer. The service is available free of charge to insured parties. The purpose of the Ombudsman is to provide an impartial, cost-efficient, informal and fair vehicle for settling disputes out of court, with regards to short-term insurance.

If you have an unresolved issue with an insurance company you should first try to settle it with the company before approaching the Ombudsman’s office. The decisions made by the Ombudsman are binding on Insurance companies but not on insured parties. If you are not happy with the decision of the Ombudsman you still have the legal right to take the matter to a court of law.

The ombudsman is only allowed to investigate cases that are not already the subject of an existing litigation (court case), and where the claim does not exceed R800 000. Details regarding the Ombudsman’s office can be obtained from your insurer as well as on the internet.