FUNERAL INSURANCE: UDM MP PROPOSES LONG-TERM INSURANCE ACT AMENDMENTS

FUNERAL INSURANCE: UDM MP PROPOSES LONG-TERM INSURANCE ACT AMENDMENTS

• 12 January 2024
• Financial Sector
• SA Legal Academy

United Democratic Movement MP Nqabayomzi Kwankwa has gazetted a notice announcing his intention to table a draft Long-term Insurance Amendment Bill in Parliament. Its purpose will be to address issues experienced by the holders of multiple funeral policies when making claims.

Serving both as an explanatory summary and a call for stakeholder input, the notice sets out the overarching objectives of the Bill now envisaged. They are that every long-term insurer should be required to comply with certain rules and disclosure obligations’, among other things making it mandatory for sales personnel to ensure that each prospective purchaser of a funeral policy:

• is aware that holding more than one such policy could have negative ‘benefits implications’, and that
• should the prospective purchaser of a funeral policy already hold one or more such policies for the same life event, they have the opportunity to cancel them.

The Bill will also provide that:

• non-compliance on the part of funeral policy sales personnel is sanctioned, and that
• the non-disclosure of a funeral policy already in place does not affect the validity of any new funeral policy.

Stakeholders have until 12 February 2024 to comment on these proposals.

• Government Gazette notice

Published by SA Legal Academy Policy Watch

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