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Insurance law: an overview
While types of insurance vary widely, their primary goal is to apportion the risks of a loss from the individual to a great number of people. Each individual pays a "premium" into a pool, from which losses are paid out. The premium is not returnable, regardless of whether the particular individual suffers the loss or not. Thus, when a building burns down, the loss is spread to the people contributing to the pool. In general, insurance companies are the safe keepers of the premiums. Because of its importance in maintaining economic stability, the government and the courts use a heavy hand in ensuring these companies are regulated and fair to the consumer.
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One frequently reads English judgments on insurance law where Canadian, Australian and New Zealand cases are referred to. It seems clear that in the apartheid years the English courts lost the habit of looking to South African decisions for comparative reasoning. We can repay some of the debt owed to English law and that English lawyers will find useful decisions among the body of South African case law.
Obtaining proper insurance cover is one of
the most essential duties placed on trustees of bodies corporate
and great care should be taken in performing this duty.
In terms of the law, your financial advisor or broker must call your attention to the clauses in your life policy that allow an assurance company to reject your claim.
How to claim the benefits of your
insurance policy
Taking the risk out of running a business
Paying to protect yourself against
possible risks
Guarding against accident claims
You must inform your
insurer or broker as soon as you become aware of any loss or
damage to your motor vehicle.
The latest report by the ombudsman for short-term insurance highlights the importance of reading your insurance policy document and complying with the terms of the policy.
If you own a home, you need both homeowner's insurance and household
insurance.
Over the years, I
have come across numerous cases of crooked financial advisers who
have made themselves beneficiaries of life assurance policies
without the policyholders apparently knowing about it.
One of the most common mistakes people make with their finances is waiting too long before they start investing for their old age. And the financial services industry should be doing more to ensure that individuals are saving enough for their later years.