Statutory Law
South African law is as colourful as the people of this nation. Indeed, we have a mixed legal system with influences from the Dutch (in our civil law), English (in our common law), and indigenous law, also called African customary law. Statutory law refers to those laws promulgated by the government of the country. In short term insurance, including car insurance, you will find references to civil law and common law. The biggest influence and area of control comes from the statutory laws specifically pertaining to short term insurance.
The Short Term Insurance Act, no 53 of 1998 governs the operations of short term insurance companies that sell insurance products such as car insurance. Insurance companies must be registered in terms of the act and must operate their business according to laid down rules and regulations. The act also includes specific protection rules for insured persons.
The Financial Advisory and Intermediary Services Act, no 37 of 2002, is another statutory law which was introduced to regulate the people giving financial advice to the public, including advice on insurance products such as car insurance.
Short term insurance is in the public interest and therefore statutory laws were required to protect the interest of the public at large.