Registrar of Short-term Insurance refers a matter against Airborne
15 April 2014 | Compliance - Regulatory | Financial Sector Conduct Authority (FSCA) (was FSB) | FSB
The Registrar of Short-term Insurance (“the Registrar”) referred a matter against Airborne Insurance Consultants (Pty) Limited (“Airborne”) to the Enforcement Committee of the Financial Services Board.
The referral relates to a contravention of section 8(2)(d) of the Short-term Insurance Act, No 53 of 1998 ("STIA”) in that Airborne rendered intermediary services to four policyholders whilst:
• The insurer was not a registered short-term insurer under the STIA in terms of the short-term policies concerned;
• Lloyd’s underwriters were not the underwriters in terms of the short-term policies concerned; and
• The insurer conducted business without the approval of the Registrar as required in terms of section 8(2)(d) of the STIA.
The Registrar considered the mitigating factors; in particular that Airborne’s contraventions were not mala fide but negligent in that it failed to ensure that its internal controls functioned properly.
Consequently, the Registrar agreed to a penalty of of R100 000 in settlement of the matter, which penalty was imposed by the Enforcement Committee on 10 April 2014.
