Gauteng Community Safety MEC Sizakele Nkosi-Malobane on Tuessday reassured the public that student l.
Early this year the Fais ombuds ruled that brokers must bear the loss for negligence when obtaining information in terms of the Financial Services Act.
The complainant partially completed the form and signed it. His vehicle was stolen and he lodged a claim with the insurer. The claim was repudiated on the basis of non-disclosure of previous losses.
The complainant had mentioned previous claims over three years but the broker chose not to fill them in and left blanks on the proposal forms to be completed later.
Though the broker believed it complied with the general code of conduct for authorised financial services providers, Fais ombuds Charles Pillai said it did not.
The general code of conduct for authorised financial services providers states "a provider must have appropriate procedures and systems in place to record verbal and written communications relating to a financial service rendered to a client".
The code also states that "no provider may request a client to sign any document unless all details have been inserted".
The ombuds found that the broker had "no discomfort" in accepting a partially completed form, in total violation of the relevant section of the general code.
The Fais ombuds said while the respondent must accept failure to comply with the Fais Act, in particular the general code had led to the complainant's loss and the complainant had to accept some responsibility.
The ombuds ruled that the complainant's claim be upheld to the extent of 70percent of his loss.