In a UK decision it was argued that the position in which the credit insurer ended up was inherently suspicious because it was ‘circular’ in that, if the insurer incurred liability to one person, it could recover from the sole shareholder of the other party under a counter-indemnity. The court said:
“However, that is the
There have been a number of cases internationally where financial institutions have been obliged to refund policyholders for imposing force-placed insurance deals at the time of contracting for financial services.
Under the National Credit Act in South Africa, credit insurance must not be unreasonable nor at an unreasonable price and this is a good test