“The Long-Term Insurance Act, 1998 (Act No. 52 of 1998) (“the principal Act”), does not provide for a due diligence exercise to be conducted by a long-term insurer offering a funeral policy product, to determine whether the policyholder or prospective policyholder already holds a funeral policy for the same life event. This prejudices policyholders as they are only made aware of the implications of holding multiple funeral policies issued by the same long-term insurer, at the claims stage. This results in some of the funeral policies not paying out because of the benefits implications of holding multiple funeral policies. The long-term insurers’ failure to make policyholders aware of the benefits implications, results in policyholders paying a lot of money on premiums for funeral policies that come to naught. “
Click here for a copy of the Private Member’s Bill and invitation for comment on the draft, namely the Long-term Insurance Amendment Bill, 2024 as published on 12 January 2024.
Interested parties and institutions are invited to submit written representations on the proposed content of the draft Bill to the Speaker of the National Assembly within 30 days of the publication of this notice. Representations can be delivered to the Speaker, New Assembly Building, Parliament Street, Cape Town; mailed to the Speaker, P O Box 15 Cape Town 8000, or emailed to speaker@parliament.gov.za and copied to nkwankwa@parliament.gov.za.
Copies of the Long-Term Insurance Amendment Bill, 2024 may, after introduction, be obtained from:
United Democratic Movement
PO Box 15, Cape Town,
8000
Attention:
Mr Nqabayomzi Kwankwa
Telephone: 021 403 3071
E-mail: lpeter@parliament.gov.za
