On 2 March 2018, the Financial Services Board published for comment proposed amendments to the Policyholder Protection Rules. Comments are required by 13 April 2018 and the below amended rules are envisaged to come into effect on 1 July 2018.
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Short-term and long-term insurers:
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Rule 2A
(Micro-insurance and funeral policy product standards
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This rule sets out the standards and requirements for micro-insurance and funeral policies only. This rule along with the rest of the PPRs must be complied with in relation to micro-insurance and funeral policies.
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Rules 7.1 (f)-(i) and 7.3
(Void provisions)
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These rules replace the contents of section 56(a) to (d) of the Long-Term Insurance Act, 1998 (LTIA) and section 52(a) to (d) of the Short-Term Insurance Act, 1998 (STIA) once the Insurance Act, 2017 (Insurance Act) comes into effect.
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Rules 11.5.1(i); 11.5.2 to 11.5.4
(These rules deal with disclosure after inception of the policy)
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This rule is an adaptation of section 48 of the LTIA and section 47 of the STIA that will be repealed once the Insurance Act comes into effect. The provisions between long-term and short-term are also aligned.
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Rule 20 (short-term) and equivalent Rule 21 (long-term)
(Misrepresentation)
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These proposed rules will replace section 59 of the LTIA and section 53 of the STIA, which will be repealed once the Insurance Act comes into effect.
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Long-term insurers only:
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Rule 15.A
(Premium reviews)
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This proposed rule will replace section 52 of the LTIA once the Insurance Act comes into effect.
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See our next edition on some practical tips on the implementation of the next tranche of rules as well as commentary on the proposed amendments to the PPRs.
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