FSB fines Assupol R500 000 for Long-term Insurance Act contravention

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The Financial Services Board (FSB) has fined long-term insurer Assupol for failing to inform policyholders who’s claims were rejected between 20 June 2012 and 13 July 2015 of their right to lodge a complaint under the Financial Services Ombud Schemes Act.

The FSB also took into account Assupol’s contravention of section 49 of the Long-term Insurance Act 52 of 1998, when during the period August 2014 to June 2016 it permitted independent intermediaries to share in underwriting profits. In doing so, the insurer failed to exercise proper oversight over its outsourced functions, said the FSB.

The insurer admitted to the contravention and co-operated with the investigation; and also agreed to implement measures to prevent and address the oversight issues.