The Smart Life Insurance Company Limited (“Smart Life”) announced today that The Registrar of Long-term Insurance (“the Registrar”) had referred a case against the company to the Enforcement Committee of the Financial Services Board.
During the period 15 April 2013 to 24 June 2016 Smart Life rejected 61 policyholder claims without advising the effected policyholders of their right to make representations to Smart Life within 90 days of receiving the notice of rejection and of the policyholder’s right to lodge a complaint with the Ombudsman for Financial Services Providers.
“We accepted the responsibility for the contravention of Rules 16.1(c)(ii) and (iii) of the Policyholder Protection Rules when it was discovered during a routine on-site inspection carried out by the Registrar. We subsequently implemented controls to ensure that our policyholders are informed of their rights at all times,” says Simon Hebron, CEO of Smart Life. A penalty of R150 000 had been imposed by the Enforcement Committee on the 14th July 2017.
Hebron further said, “Whilst we do not condone any contravention of laws that govern our business I am pleased to note that Smart Life has made significant progress in ensuring that all of our policyholders are treated fairly and with due respect.” Smart Life has paid out over R37 million in claims from the launch of the new Mdende Funeral Policy in September 2015 up until the end of May 2017.
Smart Life has over 320 000 policyholders with a gross insured value of R3.3 billion by the end of May 2017.
“Our offering is an affordable funeral insurance policy with multiple benefits, specifically designed for social grant beneficiaries. We are proud of the fact that since our inception we have been able to pay out these claims and ensure that our policyholders, and in some cases their dependents, receive the respectful burials which they deserve. Upon the death of a policyholder our product also supplements the grant income of the deceased for a further three months thus providing some financial assistance to the family of the deceased,” concludes Hebron.
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About Smart Life Insurance
Smart Life Insurance Company Ltd. is a licensed South African life insurance company and provides the South African public with access to relevant insurance products. Smart Life commenced activities in April 2013.
The Mdende Funeral Policy, launched in September 2015, is an affordable funeral insurance policy with multiple benefits specifically designed for social grant beneficiaries. The purpose of the policy is to ensure that policyholders and in some cases their dependents, receive the respectful burials which they deserve. Upon the death of a policyholder our product also supplements the grant income of the deceased for a further three months thus providing some financial assistance to the family of the deceased.
Media Relations Contact:
Bridget von Holdt
Business Director – Burson-Marsteller South Africa
Phone: +27-82-610-0650
Email: [email protected]
