Maree v C Booysen t/a NVM Beleggings & Versekeringsadviseurs (307/09) [2010] ZASCA 44; 2010 (5) SA 179 (SCA) ; [2010] 4 All SA 15 (SCA) (31 March 2010)

Maree v C Booysen t/a NVM Beleggings & Versekeringsadviseurs (307/09) [2010] ZASCA 44; 2010 (5) SA 179 (SCA) ; [2010] 4 All SA 15 (SCA) (31 March 2010)

The Supreme Court of Appeal held that the agreement entitling the insurance broker to claim commission from the insured upon cancellation of the policy within the statutory cooling-off period is unenforceable. Section 49 of the Long-term Insurance Act, read with the regulations and Policy Protection Rules, prohibits any consideration for rendering services as intermediary other than commission as contemplated in the regulations. Regulation 3.8 renders void any agreement to provide consideration otherwise than in accordance with the regulations. The court found that enforcing such an agreement would penalise the consumer for exercising the statutory right to cancel a policy within the...

Citation
[2010] ZASCA 44
Parties
Appellant: P P Maree; Respondent: Chris Booysen t/a NVM Beleggings & Versekeringsadviseurs
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
31 March 2010
Case Number
307/09
Procedural Posture
Civil Appeal / Appeal From Free State High Court (bloemfontein)
Outcome
Appeal upheld with costs; order of the court below set aside and substituted.
Judges
Navsa, Mlambo, Bosielo
Legal Topics
Long Term Insurance Act, Commission Entitlement, Policyholder Protection Rules, Unenforceable Agreement
Commercial and Corporate Civil Procedure Long Term Insurance Act Commission Entitlement Policyholder Protection Rules Unenforceable Agreement

Case Brief

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Parties

P P Maree

Appellant

Chris Booysen t/a NVM Beleggings & Versekeringsadviseurs

Respondent

Procedural Posture

Civil Appeal / Appeal From Free State High Court (bloemfontein)

Legal Issues

  1. 1 Whether an agreement entitling an insurance broker to claim commission from the insured upon cancellation of a long-term insurance policy within the statutory cooling-off period is enforceable.
  2. 2 Whether the agreement contravenes section 49 of the Long-term Insurance Act 52 of 1998, the regulations thereunder, and the Policy Protection Rules.
  3. 3 Whether the insured's waiver of statutory rights is valid under the Act.

Ratio Decidendi

The Supreme Court of Appeal held that the agreement entitling the insurance broker to claim commission from the insured upon cancellation of the policy within the statutory cooling-off period is unenforceable. Section 49 of the Long-term Insurance Act, read with the regulations and Policy Protection Rules, prohibits any consideration for rendering services as intermediary other than commission as contemplated in the regulations. Regulation 3.8 renders void any agreement to provide consideration otherwise than in accordance with the regulations. The court found that enforcing such an agreement would penalise the consumer for exercising the statutory right to cancel a policy within the...

Court Disposition

Appeal upheld with costs; order of the court below set aside and substituted.

Orders

  • The appeal is upheld with costs.
  • The order of the court below is set aside and substituted as follows: (a) The appeal is dismissed and the appellant is ordered to pay 80 per cent of the respondent's costs.