A recent case dealt with by the Office illustrates what can happen when a broker fails to comply with its duties under the General Code for Financial Services Providers and fails to conduct annual policy reviews.
The Complainant had held a motor vehicle insurance policy since 2018 covering his 2015 Land Rover Defender. The Provider took over as the broker on the policy in 2021. On 19 September 2025, the insured vehicle was involved in an accident, and the insurer settled the claim for R325 268.00, the sum insured reflected on the policy schedule. The Complainant contended that the vehicle’s retail value at the time of the loss was approximately R478 800.00 and that the settlement amount did not adequately reflect the vehicle’s true value or the declared accessories. He further submitted that the broker had failed to conduct regular policy reviews and ensure that the vehicle remained adequately insured. The Provider submitted that, when it assumed responsibility for the policy in 2021, the sum insured was already approximately R325 268.00 and that the brokerage had not introduced this value.
The Office found no evidence that the Provider had reviewed the policy in 2021 or conducted any annual reviews thereafter. The Provider had a duty under the Code to review the policy and demonstrate compliance with sections 2, 7 and 8 of the Code. These sections require financial services to be rendered with due skill, care and diligence, information to be sought from the client, and appropriate advice to be provided. The Provider was also required to review the policy at least once a year. A proper annual policy review would have alerted the Complainant and the broker to the discrepancy between the sum insured and the vehicle’s value, and the resulting financial shortfall could have been avoided.
Following the Office’s recommendation, the Provider agreed to pay the difference between the policy’s insured value of R325 268.00 and the vehicle’s market value of R478 800.00, less the additional premiums that would have been payable over the period. The Complainant accepted the resulting final settlement payment of R115 239.90.
The Office encourages Providers to conduct thorough reviews of their clients’ policies at least once a year. Annual reviews provide an excellent opportunity to ensure that each policy remains appropriate and to explain material policy terms to the client. A thorough review significantly reduces the risk of problems arising later.
Consumers are similarly encouraged to insist that their brokers conduct detailed reviews of their policies with them at least once a year. A proper review may take a few hours, but it is time well spent to ensure that consumers are adequately insured and understand any exclusions and material conditions.
If you believe you have been financially prejudiced as a result of advice and/or intermediary services rendered by a Financial Services Provider, please lodge a written complaint directly with the Provider. If the complaint remains unresolved after six weeks, you can visit our Complaints Portal at www.faisombud.co.za and select ‘Lodge Complaint’. Alternatively, you may submit a written complaint to