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Draft Credit Life Insurance regulations published

By Patrick Bracher (ZA) on November 19, 2015

The draft Credit Life regulations have been published.

Comments have been invited by 13 December 2015.

The premium for agreements is R4.50 per R1 000 for the deferred amounts except mortgage agreements and developmental credit agreements which are R2.00 per R1 000.

Disability should be (but is not) related to the ability to earn the income upon which the credit was granted.

The draft regulations do not take into account that the products are usually bundled products and not individually underwritten which is to the advantage of the consumer.

The permissible exceptions appear to be reasonable although there might be others that are important to you. The exceptions must be explained to the consumers at regular intervals which will need notice to consumers.

The proposal that credit providers must comply with guidelines of the NCR or the insurance registrars would be an impermissible delegation by the Minister and unlawful and unenforceable.

  • Posted in:
    Financial
  • Blog:
    Financial Institutions Legal Snapshot
  • Organization:
    Norton Rose Fulbright

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