“While we commend the FSB (Financial Services Board) for promising swift enforcement action today, that action is two years overdue for the clients that have been religiously paying their insurance premiums while patently uninsured.”
That was the reaction of Barry Taylor, chairman of the Short Term Insurance Executive Committee at the Financial Intermediaries Association of Southern Africa (FIA), to last week’s Consumer Alert report about Model Insurance, a KwaZulu-Natal company which has been selling policies – mainly car insurance – despite having never been registered with the FSB and not being underwritten by a registered insurance company, as required by law.
This came to light after many of its clients complained their cars’ repair bills were not paid.
Acting on complaints, the FSB referred the matter to the police for investigation early last year.
Taylor warned that “such incidents are on the rise in a market where consumers increasingly transact for low- cost motor vehicle insurance products, without the benefit of financial advice”.