Smart Life fined R150 000

THE enforcement committee of the Financial Services Board (FSB) has fined assurance company Smart Life R150 000 for not notifying policyholders of their rights when claims were rejected.

According to the FSB, between April 2013 and June last year, Smart Life contravened the Policyholder Protection Rules by, when rejecting claims, failing to inform its policyholders of their right to make representations to the insurer within 90 days of the rejection notice, and their right to lodge a complaint with the appropriate ombudsman.

As aggravating factors, the Registrar of Long-term Insurance noted that Smart Life had failed to demonstrate sound insurance practice in the interests of policyholders. In mitigation, Smart Life co-operated with the registrar and undertook to implement measures to prevent similar contraventions. – Staff Reporter