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Johannesburg - The Doves Group has been fined R100 000 for contravening the Long-term Insurance Act, the long-term insurance registrar said on Wednesday.
It was also instructed to contribute R50 000 towards costs.
The fine and costs were imposed after the contravention was referred to the Enforcement Committee of the Financial Services Board, the registrar said in a statement.
"The referral relates to a contravention of section 8 (3) of the Long-term Insurance Act, No 52 of 1998."
Doves marketed and solicited long-term insurance policies and collected premiums under the policies between July 2011 and November 2012, while a long-term insurer was not a party to the policies.
Mitigating circumstances were considered before the fine and costs were imposed.
These were that Doves accepted full responsibility for the contravention, co-operated fully during the registrar's investigation and enforcement action, plus no loss was suffered by policy holders due to the contravention.
The penalty and costs were imposed by the enforcement committee on Monday.
