In­surer fined for in­duce­ment

Weekend Argus (Saturday Edition) - - PERSONALFINANCE -

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.

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