What laws govern car insurance in South Africa?
- Short Term Insurance Act (Act 53 of 1998)
- Policy Holder protection Rules (Short Term Insurance) 2004
- Financial Advisory intermediary Service Act (Act 37 of 2002)
- Financial Services Ombud Schemes (Act 37 of 2004)
The Insurance sector in South Africa is regulated by the Financial Services Board. This means that it’s illegal for anyone who has not applied to the Financial Services Board to be licensed as a financial services provider, to give a consumer financial advice or sell a financial product.
If you as a consumer receive inappropriate advice or if a financial services provider or an fsp representative has not followed by proper procedures, you are entitled to lay a complaint with the Ombud for Financial Service Providers.
In terms of the Act, no insurer may allow a consumer to sign a blank or partially completed form necessary for entering into a policy.
The Short Term insurance Policyholder Protection Rules apply to any short term policy, such as motor vehicle or household policies.
The Short Term insurance Act regulates policies and business practices and offers policyholders protection. It also controls the activities and administration of short term insurers and intermediaries. As a consumer, you are offered protection by the laws that regulate the insurance industry.
As a consumer in search of cheap car insurance quotes you need to be aware of how the system works.
You need to make sure that you are aware of how quote amounts are worked out as well as how quotes work.
When an insurance company provides you with a quote this is based on the information that you have provided. To get the most accurate results, you need to make sure that you provide accurate details.