Policy Holder Protection Rules
Rules which protect short term insurance buyers became law in 2004. The rules form part of the Short-Term Insurance Act, Section 55. These Policy Protection Rules should not be confused with the rules included in the Short-Term Insurance Code of Conduct or the rules set out in the Financial Advisory and Intermediary Services Act (FAIS.)
As the name states the rules are there to protect policy holders and they are applicable to all types of short-term insurance such as car insurance, homeowners and house holders insurance. Public Liability Insurance such as Third Party Car Insurance is also included. The aim of the rules are to ensure that car insurance policies are based on sound insurance principles and practices and that the interest of all parties such as the insurance company and the insured person are protected – with particular emphasis on the protection of the insured public.
Some of provisions are:
- Policy holders must receive written proof of any insurance contract entered into.
- You must receive full details of the available complaints procedure including the contact details of the ombudsman.
- If any claim you made on your car insurance is rejected the insurer must give you written notice of the reasons.
- The insurers may not demand that you undertake a polygraph or lie detector test.
- The insurer must allow a 15 day grace period for the payment of premiums.
Please note this list does not contain all the protection rules.