The new Policyholder Protection Rules, which were gazetted into law on 15 December 2017, have necessitated certain changes in our industry. To comply with these legislative requirements, which are being implemented in phases, we are introducing new concepts and amending existing processes. Here are a few pointers of which you need to be aware.
1. PRODUCT-SPECIFIC TRAINING – GOING LIVE ON 25 SEPTEMBER 2018
We are excited to announce the launch of our online learning portal which will facilitate the product-specific training for our broker partners. Our go-live date is Tuesday, 25 September 2018. We will send out a circular to the brokers on our database with all the details for registration. We will also be posting notifications on our social media platforms. Email us firstname.lastname@example.org for more information. Watch this space!
2. BROKER SERVICE FEES
The Policyholder Protection Rules regarding these fees do not apply to juristic persons (commercial clients) with an annual turnover or asset value of more than R2 million, which is the threshold in terms of the Consumer Protection Act.
On all new policies and existing business, we will require the policyholder’s signed acceptance of your broker service fee for policies where the juristic person (commercial client) has an annual turnover or asset value of less than R2 million.
Very important to note: No fee can be paid over after 15/12/2018 where sign-off has not been obtained in writing
3. SIGNING OF BLANK OR INCOMPLETE FORMS
A policyholder may not be required, permitted or allowed to sign blank or incomplete forms. We are therefore not permitted to accept such forms, be they proposal forms, debit order authorities or other. Please ensure that your clients duly complete all forms so that there are no blank spaces or incomplete information. Anything that is not applicable must be indicated as N/A or struck through
4. TERMINATION OF POLICIES
The 30-day notice period for termination of a policy has now been extended to 31 days.
5. WAIVER OF RIGHTS
Under no circumstances may a policyholder be requested to waive any PPR-invoked right.
We are in the process of finalising the following:
- Complaints Management Framework
- Claims Management Framework
- Re-contracting Framework
Communication will be sent out in due course.