Government Notice No. 4245 of 2024

The Long-Term Insurance Amendment Bill, 2024 » Notice of intention to introduce a Private Members Bill and...

Title	The Long-Term Insurance Amendment Bill, 2024 » Notice of intention to introduce a Private Members Bill and invitation for comment on the Draft
Department	Parliament of the Republic of SA
Gazette	National Gazettes, No. 49979 of 12 January, 2024, 2 page(s), 101Kb

14   No. 49979               GOVERNMENT GAZETTE, 12 JANuARy 2024
                               PARLIAMENT OF THE REPBULIC OF SOUTH AFRICA

No                     PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA           January 2024

NO.  4245                                                                            12 January 2024
                                      MR NQABAYOMZI KWANKWA, MP
              NOTICE OF INTENTION TO INTRODUCE A PRIVATE MEMBER’S BILL
              AND INVITATION FOR COMMENT ON THE  DRAFT,  NAMELY THE

LONG-TERM INSURANCE AMENDMENT BILL, 2024

Mr Nqabayomzi Kwankwa, MP acting in accordance with section 73(2) of the Constitution of the
              Republic of South Africa, 1996, intends to introduce the  Long-Term Insurance  Amendment Bill,
              2024, in Parliament. An explanatory summary of the Bill is hereby published in accordance with
              Rule 276(1)(c) of the Rules of the National Assembly (9  Edition).
                                                                  th

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.

To avert this prejudice suffered by policyholders of, and beneficiaries under, a funeral policy, the
              Long-Term Insurance Amendment Bill, 2024 (“draft Bill”), intends to amend the principal Act, so as
              to—

•  require  the Authority to prescribe  rules related to protecting a policyholder of multiple
                     funeral policies for the beneficiaries, and to require a long-term insurer to offer advice within

Type your email for free alerts on latest Parliament of the Republic of South Africa notices as they are published

greengazette

Government Notice No. 4245 of 2024

Links

Publications