Prohibition Of Conditional Selling Of Insurance Products By Insurance Entities, Together With The Banking Institutions, Furniture Stores, Motor Dealers And Microlenders, Etc.
The attention of consumers is drawn to a Public Notice that was published in the Government Gazette of 15 July 2014 to prohibit the conditional selling of insurance products by insurance entities, together with the banking institutions, furniture stores, motor dealers and microlenders.
Conditional selling is when a transaction is completed if certain conditions are met as agreed by
one or both parties. In this instance, the condition is that the insurance policy is taken out with only a certain insurer and the consumer does not have freedom of choice with whom to take out an insurance policy.
NAMFISA has recently been alerted by some members of the public that certain institutions, together with insurance entities are engaged in conditional selling of the insurance products. Section 60 of the Short-term Insurance Act No. 4 of 1998 and section 62 of the Long-term Insurance Act No. 5 of 1998 prohibits such practice.
Should any persons or entities be found guilty in this regard, such shall, upon conviction, be liable to a fine not exceeding N$15,000 or imprisonment for a period not exceeding two years or both.
NAMFISA hereby notifies the public that should an insurance entity or any institution not allow any person to freely choose his/her own insurer from the beginning of the insurance-related transaction
such an institution should be reported to the Registrar of short-term insurance by lodging a complaint at our Complaints Department at: (061) 290 5000 (main) or 290 5133 (Ms. Marina K Ishidhimba) or 290 5207 (Ms. Hilka Alberto), Fax: (061) 290 5122; for online complaints, email complaints@namfisa.com.na; visit our website at www.namfisa.com.na or visit us at: 6th Floor,
Alexander Forbes House 154, Independence Avenue, Windhoek.
NAMFISA treats all information obtained from the public with confidentiality.
Issued by: Phillip N. Shiimi
REGISTRAR: INSURANCE DIVISION