About time…
In a landmark ruling recently, Charles Pillai, the Ombudsman for Financial Advisory and Intermediary Services (FAIS), ordered Nedbank Limited and Nedbank Group Insurance Brokers to allow consumers the right to choose the company from which they wish to pu
Pillai ordered the bank and its insurance division to cancel the homeowner’s cover it had unilaterally effected over the property of the complainant and to refund all premiums paid in respect of the cover.
Nedbank Group Insurance Brokers was ordered to accept the existing Santam insurance policy as homeowner’s cover over the property.
In his judgment, Pillai noted “with concern” certain trends and practices which indicated that the bank and insurance brokerage may be engaging in prohibited practices and/or anti-competitive conduct and submitted a copy of his determination to the Competition Commission for further investigation.
