October 2014

We often hear complaints about the additional red tape that compliance with the Protection of Personal Information Act, 2013 (POPI) will impose on business. Although compliance will be a continual process, it should not be viewed as an impractical or overly burdensome task. POPI is not aimed at restricting business and should be applied practically.

In English law an insured who uses a fraudulent device to promote an otherwise valid claim forfeits the claim.

This is not the position in South African law. Unless there is an appropriately worded fraud clause an insured who embellishes their claim with a lie where it is in all other respects valid will not

Where a hearing must take place (in this case to terminate soldiers’ employment) it is necessary but not sufficient to inform the subject of the complaint of the nature of the alleged misconduct and to ask for representations in regard to whether the conduct occurred and constituted misconduct and what the appropriate sanction is.

The

Regulation 6.6 of the Short-term Insurance Act requires an insurer to give notice to the Financial Services Board (FSB) 60 days before the termination date of a binder agreement (the form of the notice is in Annexure A of Directive 151).

Directive 151 mistakenly stipulates that notice must be given 40 days before the termination

Insurers should check their exclusions relating to claims for penalties if they do not want to pay civil penalties.  This is especially important in this age of major fines by regulators.

A Louisiana court has obliged an insurer to cover $3.5 million in civil penalties imposed on an energy company for violations of the USA