car-insurance-fraudOn 16 March 2010, the South African Insurance Association (SAIA) launched its new industry Code of Conduct at the Johannesburg Country Club, Woodmead.

The South African Insurance Association (SAIA) represents the short-term insurance industry in South Africa at all levels and with all stakeholders to ensure a sustainable and dynamic short-term insurance industry for the benefit of all involved.

The SAIA acts as the spokesperson of the industry seeking to constructively work with all relevant stakeholders including consumers and users of short-term insurance, Government, the media and other relevant entities.

Purpose of the Code

The purpose of this Code is to: Promote high ethical standards and good business practices in the short-term insurance industry by giving specific guidance on acceptable and unacceptable practices in all the phases and relationships of short-term insurance business; and Give current and potential customers of short-term insurance products a clear indication of the self-imposed guidelines followed by SAIA members who provide such products to them.

Although the guidelines in this Code extend to the associates of SAIA members, the purpose of the Code is to regulate the services offered on behalf of SAIA members by their associates, and not to regulate entities outside the SAIA member base.

The Code therefore forms the basis for resolving any conflict which may arise between consumers and insurers and their associates – while acting on behalf of insurers – that relates to the requirements of this Code.

The sections in the Code relevant to the South African Insurance Crime Bureau are as follows:

11. Fraud and improper conduct
Members of the SAIA are unequivocally opposed to fraud and improper conduct, and will do everything in their power to identify, verify, investigate and prevent such behaviour. SAIA members will follow the following standards in this regard:
11.1 Insurers
All insurers are expected to participate in combating fraud and improper conduct.
11.1.2 Should an insurer cancel a contract with an associate due to the fact that that associate was found to have acted fraudulently or in an improper manner, the following procedure will be followed by the insurer: The insurer will inform the customers of the associate about the cancellation of the contract between the insurer and the associate, as well of the options available to the customers including retaining their current policies with the insurer directly or through another associate, or moving their business with the Associate; Inform the South African Insurance Crime Bureau (SAICB) of the cancellation of the contract with the associate and the reason for it;
11.1.3 Should an insurer be approached by an associate with a book of business, the insurer will establish with the SAICB whether another insurer has notified it about the cancellation of a contract with that particular associate due to the fact that that associate was found to have acted fraudulently or in an improper manner. Should the insurer find out that that associate had in fact been referred to the SAICB, the insurer should not accept business through that particular associate.
The SAICB has put in place systems to incorporate this function into its overall strategy. For further information on this or assistance, please feel free to contact Melanie Pillay on melaniep@saicb.co.za or Hugo van Zyl on hugovz@saicb.co.za
We would like to urge all role players in the car insurance industry to combat insurance fraud!!
[Information from the Newsletter of the South African Insurance Crime Bureau]

Also view:

Be Sociable, Share!

4 thoughts on “South African Insurance Association (SAIA) launches new industry Code of Conduct

  1. Daleen Rankin

    Can I child take out insurance without a parent be there? What if the parent does not live aymore and the child uses their ID number to get a cheaper quote? How do you know that the parent knows about the insurance, without even confirmation with the parent?
    Does Insurace companies do credit checks on the parents to see if they under debt review or not?
    And if the are, what then, debt review law stipulates that once under debt review not more debt is allow to follow until name is cleared with ITC.
    When doing online insurance, how do you know that the person requesting the insurance has a valid drivers license?
    Please assist me with some answers? To me it is just to easy to give online insurance without any checks and confirmation.

  2. admin

    Hi Daleen,

    It is pretty simple to answer your questions …. The insured client has a responsibility to be honest when applying for insurance.

    In this day and age it is very easy to check whether someone has died or whether someone has a valid drivers licence.

    If your insurance company finds the client lied on their application they will simply repudiate a claim.

    So don’t even think about lying, it will cost you!

  3. Elsabe Nolan

    Hi - 
    When a motor vechile gets insured by my motor dealer,
    is it the responsibility of the insurance company to email me a
    copy of the cover for my insured vechile, and if not who’s responsibility
    is it? And what info must such a document consist of?

    Thanks
    Elsabe

  4. Ferdi

    What happens when a SAIA member infringes on another patent holder’s patent in order to benefit financially?

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

clear formSubmit