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Statutory Notice



As a long-term insurance policyholder, you have the right to the following information:

  1. The intermediary (insurance broker or representative) dealing with you must at the earliest reasonable opportunity disclose:
    A) Intermediary details and brokerage details.
    B) Legal capacity.
    C) Concise details of relevant experience.
    D) Insurance products that may be sold.
    E) Insurers whose products may be marketed.
    F) Indemnity cover held.
    G) Shareholdings in insurers if 10% or more.
    H) Percentage of commission received from the various companies if in excess of 30%.
     
  2. Your right to know the impact of the decision you elect to make:
    A) The intermediary or insurer dealing with you must inform you of:
    • The premium you may be paying
    • The nature and extent of the benefits you may receive
    B) If the benefits are linked to the performance of certain assets:
    • How much of the premium will go towards the benefit
    • To what portfolio will your benefits be linked
    C) The possible impact of this purchase on your finances.
    D) The possible impact of this purchase on your other policies (affordability).
    E) The possible impact of this purchase on your investment portfolio (affordability).
    F) The flexibility of changes you make to the proposed contract.
    G) The contract terms of the product you intend to purchase (it’s very important that you are quite sure that the product or transaction suits your needs and that you feel you have all the information you need to make a decision).


  1. Your right when being advised to replace an existing policy. You may not be advised to cancel a policy to enable you to purchase a new policy or amend and existing policy, unless:
    A) The intermediary identifies the policy as a replacement policy.
    B) The implications of the cancellation of the policy are disclosed to you such as:
    • The influence on your benefits under the old policy
    • The additional costs incurred with the replacement
    C) The insurer, which issued the original policy, will contact you; you are advised to discuss the matter with its representative.
     
  2. Your right to be informed by the insurer.
    A) The name of the insurer
    B) The product being purchased
    C) The cost in Rands of the transaction and specifically:
    • The loading, if any;
    • The initial expense; and
    • The amount of commission and other remuneration being paid to the intermediary.
    D) In the case of policies in an investment element, the ongoing expense and any other fees or charges payable.
    E) The summary in terms of section 48 of the long-term insurance act, 1998.
    F) The contract number and address of the complaints and compliance officers of the insurer. (The insurer may disclose the above information on a generic basis with additional policyholder specific disclosure)
     


  1. Your right to cancel the transaction.
    In most cases you have the right to cancel a policy in writing within 30 days after receipt of the summary contemplated in Section 48 from the insurer.  The same applies to certain changes you may make to your policy.  The insurer is obliged to confirm to you whether you have this right and to explain how to exercise it.  Please bear in mind that you may not exercise this right if you have already claimed under the policy or if the event, which the policy insures you against, has already happened.  If the policy has an investment component, you will carry any investment loss.  Important Warning
    A.) It is very important that you are quite sure that the product or transaction meets your needs and that you feel you have all the information you need before making a decision.
    B.) It is recommended that you discuss with the intermediary or insurer the possible impact of the proposed transaction on your finances, your other policies or your broader investment portfolio.  You should also ask for information about the flexibility of any proposed policy.
    C.) Where paper forms are required, it is advisable to sign them only once they are fully completed.  Feel free to make note regarding verbal information, and to ask for written confirmation or copies of documents
    D.) Remember that you may contact either the long-term insurance ombudsman or the Registrar of long-term Insurance, whose details are set out below, if you have any concerns regarding a product sold to you or advise given to you.
     
  2. Particulars of Long-Term Insurance Ombudsman: P.O. Box 45007 Claremont 7735, TEL:  (021) 674 0330, FAX:  (021) 674 0951
  3. Particulars of Registrar of Long-Term Insurance Financial Services Board:    P.O. Box 35655, Menlo Park 0102
    TEL:  (012) 428 8000, FAX:  (012) 347 0221