January 2012
The Consumer Protection Act No. 68 of 2008
Purpose of the Act: The Consumer Protection Act, No. 68 of 2008 (“the CPA”) was signed on 24 April 2009 and came into effect on 1 April 2011. The purpose of the act is to promote the social and economical welfare of consumers, in other words, to make markets work better for consumers through enabling them to make informed decisions, ensuring access to a wide range of products and services, access to redress and education about consumers’ rights and responsibilities. The responsibility to enforce the CPA is charged to the National Consumer Commission.
Rights under the CPA: The CPA affords the consumer extensive rights which include the right to privacy, the right to choose, the right to accountability by suppliers, the right to fair and honest dealings, the right to disclosure of information, the right to equality and protection against discrimination, the right to fair and responsible marketing, the right to fair value, the right to good quality and safety, the right to reasonable terms and conditions, the right to return goods within a specified period of time, the right to be given notice before the expiry of fixed term contracts and the right to legal documents and scripting in plain language.
Who may complain?: Complaints may be lodged by an individual, an authorised person acting on behalf of another, a person acting as a member or in the interest of an affected group or class, or a person acting in the public interest.
Ambit: The CPA applies to every transaction, agreement, advertisement, production, distribution, promotion, sale or supply of goods or services, and to the promotion and marketing of any goods or services and to suppliers of goods and services. Certain transactions are exempt. For instance, where the goods or services could not reasonably be the subject of a transaction falling within the ambit of the CPA or where the goods or services have been specifically exempted from the application of the CPA.
Exemptions: The Act does not apply to: •goods or services promoted or supplied to the state, •industry-wide exemption to regulatory authorities, •credit agreements in terms of the National Credit Act, but not goods or services, •services under employment contracts, •agreements giving effect to collective bargaining agreements, and •agreements giving effect to bargaining agreements (Section 213 of the Labour Relations Act).
Important definitions: The definitions of “Consumer” and “Services” are important when interpreting and applying the Act. A consumer is regarded as a person – to whom goods or services are marketed in the normal course of business or somebody who has concluded a transaction with a supplier, as well as a person who uses, receives or benefits from the services. Small businesses with assets or annual turnover of less than R2 million also enjoy protection under the CPA.
“Services” include – •any work or undertaking performed by one person for the direct or indirect benefit of another, •the provision of any education, information, advice or consultation, except advice that is subject to regulation in terms of the Financial Advisory and Intermediary Services Act, •any banking services, or related similar financial services, or the undertaking, underwriting or assumption of risk by one person on behalf of another, except services that constitute advice or intermediary services that are regulated by the Financial Advisory and Intermediary Services Act, or services that are regulated by the Long-Term and Short-Term Insurance Acts.
Applicability of CPA to the insurance industry: Notwithstanding the fact that advice or intermediary services that are regulated by the Financial Advisory and Intermediary Services Act, or services that are regulated by the Long-Term and Short-Term Insurance Acts are excluded from the definition of “Services”, the insurance industry does not fully escape the application of the CPA. The CPA prescribes that the Long-term Insurance Act and the Short-term Insurance Act must be aligned with the consumer protection measures of the CPA by October 2012. If this is not done, the provisions of the CPA will apply to all services rendered in terms of the two insurance Acts. The ideal mechanism for this alignment is the Policy Holder Protection Rules.
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05 October 2011
MUA HNW INDIVIDUAL PRODUCT RANGE LAUNCHES ON BROLINK’S WEBSURE
MUA Insurance Acceptances has launched its exclusive high net worth individual short term insurance product range on the Brolink online system known as Websure, following a partnership between the two companies. This is initially for the Gauteng region only with a view to expand nationally. According to Christelle Fourie, Managing Director of MUA Insurance Acceptances, the MUA range is the first product available on Websure that is specifically tailored for high net worth individuals. “Brolink have an exemplary record of providing great service to their brokers over the past 17 years. This is a mutually beneficial partnership for the two companies, enabling Brolink brokers to expand their client base.” “The Websure system is a one-stop shop for brokers and makes the process of obtaining the right documentation and authorisation much quicker,” says Fourie. Clipstone Webber, Managing Director of Brolink, says Websure is an administrative and services backup tool for Brolink brokers that assists the broker by completing time consuming administrative tasks, thereby allowing them to spend more time marketing their services to clients. Websure is an Internet-based, multi-quote insurance solution that uses browser-based technology, says Webber. “The solution facilitates access via both the Internet as well as the traditional digital data networks. It enables Insurers, Underwriting Managers, Intermediaries and Captives to obtain insurance quotations, issue policies, track claims progress and view documentation online from major insurance providers.” Fourie says there are myriad benefits for brokers in utilising the services of Websure. “Brolink brokers have accessibility anywhere via the Internet. The information stored is comprehensive, inbound and outbound correspondence is stored, the storage of images is possible, there is total integration between all modules and it is easy to use.” Fourie adds that most importantly the record keeping abilities of Websure are extensive and assist in meeting the requirements of the FAIS Act. “MUA is proud to have partnered with Brolink, enabling the MUA product range to become available to an even wider range of brokers. This is an exciting development for both parties and we look forward to building long-lasting relationships with these new partners,” concludes Fourie.
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December 2010
For the third time in 4 years, Brolink has been awarded the Santam Administrator of the Year award. This achievement acknowledges our continued commitment to service excellence.
