CCR Magazine

You are here  :Home arrow News arrow Consumer Credit News arrow Credit life insurance regulations are now in effect
Contact Us Newsletter Signup RSS Feeds

Credit life insurance regulations are now in effect PDF Print E-mail
Friday, 11 August 2017
South Africa: Lesiba Mashapa, Company Secretary at the National Credit Regulator (NCR) says the final credit life insurance regulations which prescribe the minimum benefits that must be offered to consumers and the limitations or exclusions that apply to the insurance cover have come into effect on 09 August 2017. These regulations were published in the Government Gazette in February 2017 and were set to come to effect six months after the date of publication. 

The regulation’s aim is to limit the cost of credit life insurance. Consumers will now be charged a maximum of R4,50 per R1000 of the deferred amount for credit facilities, unsecured loans, developmental credit agreements and other types of credit agreements. When it comes to mortgages, consumers can only be charged a maximum of R2 per R1000 of the deferred amount.

Consumers that are not employed cannot be sold retrenchment cover. A consumer who dies or becomes permanently disabled will have his or her outstanding debt under a credit agreement settled by the credit life insurance policy. If the consumer loses his or her job, the policy will pay instalments due under a credit agreement for up to 12 months.

It is important to note though, that these regulations are not retrospective. Consumers who have a life cover can use their life covers to cover their debts and should not be forced to take out a new insurance as long as the life cover is sufficient to cover the debt in case of a claim, says Mashapa.
 

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

Consumer Sponsor

This Consumer Credit News section is currently available for sponsorship.

Please click here to contact us about our site sponsorship opportunities.

subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197