Compliance Concern: Device Insurance Policy Transparency & Fairness

I am raising a compliance and consumer transparency concern regarding a device insurance policy administered by Viva Cover (Pty) Ltd (trading as Techsured) and underwritten by Guardrisk Insurance Company Ltd . After reviewing the full policy wording against the FAIS Act and the Policyholder Protection Rules (PPR), particularly within the Treating Customers Fairly (TCF) framework, several provisions raise material fairness considerations.

Effective 40% Excess Within First 60 Days The policy applies: A 25% excess on all claims; and An additional 15% excess if a claim occurs within the first 60 days. This results in a potential 40% deduction from the claim value. From a TCF Outcome 3 perspective (clear and not misleading disclosure), the financial impact of this structure should be prominently and explicitly communicated at point of sale, as it significantly affects the value proposition of the product. Absolute 30-Day Forfeiture Clause The policy provides that failure to: Report a claim within 30 days; or Submit required documentation within 30 days results in automatic forfeiture of all benefits. This operates as a strict condition precedent to liability. In practice, such absolute forfeiture provisions raise proportionality considerations, particularly where minor or administrative delays may occur without prejudice to the insurer. Broad “Reasonable Precautions” Requirements The policy requires that devices must not be left in public places and must be safeguarded at all times. These clauses are broadly drafted and open to interpretation at claim stage. The concern is whether such wording may allow subjective assessment of precaution standards in genuine theft scenarios. Insurance products must not only be contractually enforceable — they must reflect transparency, proportionality, and fairness in application. I would welcome clarity from Viva Cover and Guardrisk on how these provisions are positioned to consumers at point of sale and how they align with TCF Outcomes 1, 3 and 6. Constructive engagement strengthens consumer confidence in the financial services sector. hashtag#Insurance hashtag#FAIS hashtag#TCF hashtag#Compliance hashtag#FinancialServices hashtag#ConsumerProtection hashtag#SouthAfrica