27 May 2010
Guest article by Jason Esch on behalf of Carandhomeinsurance.co.za
South African insurers have adopted a new code of conduct that requires them to treat their consumers more fairly. The South African Insurance Association (
SAIA) drafted the code of conduct which holds its members accountable for the way they deal with policyholders, making it compulsory for insurers to be forthcoming with information.
Insurers will now be responsible for helping consumers determine the value of car insurance and home insurance. “Traditionally the value of the insurance is determined by the consumer. It is also the responsibility of the consumer to update this value each year as inflation pushes up the cost to replace your possessions,” says spokesman for
www.carandhomeinsurance.co.za. “The new SAIA’s code of conduct now requires insurers to assist you in updating your policy, even if you forget to do so.”
Similar to the stipulations of the
Consumer Protection Act, the code of conduct sees insurers being more transparent by explaining insurance processes, such as returned debit orders, explaining your legal duty to disclose accurate information and providing you with information such as the outcome of your vehicle assessment, and so forth.
“The code of conduct requires insurers to be more communicative with their consumers, which could help to educate policyholders about the insurance process,” says Carandhomeinsurance.co.za. According to the Short-term Insurance Ombudsman (
OSTI), a lack of understanding of insurance is one of the biggest reasons for claims made to the OSTI.
Although only members of the SAIA have ratified the code (that is 80% of the short-term insurance industry in South Africa), Ombudsman Brian Martin told “Personal Finance” that he will apply the code when dealing with complaints. Failure to live up to the code could result in sanctions being imposed on the insurer by SAIA, which include everything from rectifying the situation to paying a fine to SAIA and referral to the Financial Services Board. If you feel an insurer has broken the code of conduct in their dealings with you, you can contact SAIA on 011 726 5381 or email them at
info@saia.co.za.
About CarandHomeInsurance.co.zaCarandhomeinsurance.co.za is an online insurance policy quote aggregator that sources quotes from leading independent direct and broker insurers allowing consumers to compare insurance before signing a policy.
