DURBAN – The Financial Sector Conduct Authority (FSCA) has launched a probe into Edgars’ decision to force its insurance cover holders to switch their payment method to monthly debit orders.
The FSCA said that while there was no legislation that prevented an insurer from changing the manner in which it collected premiums, the process needed to be inclusive. FSCA divisional executive for business supervision Kedibone Dikokwe said the authority had been in contact with Hollard Insurance on the policies linked to Edcon clients.
She said the FSCA had put the process under its spotlight to protect the insurance policyholder.
“Our office is still engaging with the insurer on this last issue and we are still obtaining further information to assess the reasons for this decision and the effect of this decision on policyholders.”