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FSB: Orange Insurance Limited placed under provisional liquidation

14 August 2012 FSB

The Financial Service Board hereby informs the public that Orange Insurance Limited (Orange) was placed under provisional liquidation of 24 July 2012, with the return date for the final liquidation order set down for 9 October 2012.

The provisional liquidation was informed by, amongst others, –

* the Registrar of Short-term Insurance (Registrar) prohibiting Orange from conducting new insurance business on 1 February 2010, because it was (and remains) financially unsound in terms of the Short-term Insurance Act; and

* Orange’s persistent refusal to settle outstanding claims and liabilities arising from policies entered into by Fleetsure (Pty) Ltd or Fusion (Pty) Ltd on behalf of Orange, despite the Registrar directing Orange to do so and the Appeal Board of the Financial Services Board upholding the directives issued to Orange in this regard.

The provisional liquidation means that Orange may not conduct business (trade) other than through the Master of the High Court or the provincial liquidator, once appointed. This is in addition to the standing prohibition on conducting insurance business imposed by the Registrar since 1 February 2010.

A provisional liquidator has not been appointed to date, but as soon as the Registrar is informed of the appointment and the provisional liquidator’s contact details, the Registrar will make this available to all policyholders of Orange with outstanding claims and guarantees against Orange that the Registrar is aware of.

The Registrar invites all policyholders with outstanding claims and guarantees arising from policies entered into by Fleetsure (Pty) Ltd or Fusion (Pty) Ltd on behalf of Orange during the period in which Orange was on risk to submit (or re-submit as the case may be) details of claims and guarantees to the Registrar in writing as soon as possible, c/o Ms Juanita Smit via facsimile on 012 346 6873 or Juanita.Smit@fsb.co.za.

Policyholders with outstanding claims, as well as other creditors of Orange, are also encouraged to be mindful of calls from the provisional liquidator (once appointed) to lodge claims.

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