Insurer fined for inducement
Discovery Insure has been fined R100 000 by the Enforcement Committee of the Financial Services Board (FSB) for offering policyholders a premium waiver through its Vitality Drive program.
According to the FSB, the insurer offered the premium waiver for the month of January this year to people using the Gautrain who took up short-term insurance before October 31. The offer contravened the Short Term Insurance Act which prevents insurers from offering you inducements to take out policies.
The matter was referred to the enforcement committee by the Registrar of Short-term Insurance.
The FSB says the committee took into account that the contravention was not intentional, Discovery admitted the contravention, expressed regret and gave its full co-operation to the registrar.