Credit Life Insurance Regulations – Regulator call for comment
The National Credit Regulator has published a circular advising that it will conduct a review of the Credit Life Insurance Regulations,2017 (“CLI Regulations”). The Circular invites stakeholders to
submit comments and contribute feedback on any matter which stakeholders want to bring to the attention of the NCR regarding the CLI Regulations which they believe need change, including ways in which the CLI Regulations can be tailored to meet the demands of future natural disasters and health pandemics.
Some of the areas highlighted in the circular for comment include:
- the manner of calculation of the cost of credit life insurance on the deferred amount
- the maximum prescribed cost of credit life insurance per product category & adjustment thereto
- credit life insurance covers and benefits and the exclusion or limitation of certain covers or benefits
- the power of the NCR to request information to show compliance
- risk underwriting on an individual or group basis
- intervals at which the exclusions and limitations must be explained and communicated
- waiting period for credit agreements with a term of more than six months
- exclusion of a waiting period for short term loans of one month or less
- benefits in addition to the minimum benefits
- annual charging of credit life insurance
- substitution of credit life insurance policy.
The review is intended assess changes that may be required and to make recommendations to the Department of Trade, Industry and Competition. Comments should be submitted by close of business on 30 June 2021.