FSB fines Lombard Life | Fin24
 
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FSB fines Lombard Life

Feb 20 2017 18:54

Johannesburg - The Registrar of Long-term Insurance referred a case against Lombard Life to the Enforcement Committee of the Financial Services Board.

Lombard Life, during the period October 2014 to November 2015, rejected 114 insurance claims. In 86 instances the notice to the policyholders informing them about the rejection of the claims, Lombard Life did not comply with the Policyholder Protection Rules.

This is because the notices did not inform the claimants that they may, within a period of not less than 90 days after the receipt of the notice make, representations to Lombard Life in respect of the decision; that they have the right to lodge a complaint under the Financial Services Ombud Schemes Act; and of the relevant provisions of the act relating to the lodging of such a complaint.

In mitigation the Registrar took into account, amongst others, that Lombard Life admitted the contravention, co-operated with the Registrar’s investigation and the subsequent enforcement action, and undertook to implement measures to prevent the contravention from recurring.

Consequently, the Registrar agreed to a penalty of R150 000, which was imposed by the Enforcement Committee on Lombard Life on 15 February 2017.

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