Notice of the Transfer of the Rights and Liabilities of Hollard Specialist Insurance Limited in respect of Short Term Insurance Policies Underwritten by it, to Centriq Insurance Company Limited.
Please note that it is intended for a portion of the short term insurance policies underwritten by Hollard Specialist Insurance Limited (“Hollard”) to be transferred to Centriq Insurance Company Limited (“Centriq”). The transfer will be effected in accordance with section 50 of the Insurance Act, 18 of 2017 (”the Act”) and Prudential Standard GOI 6.
The particular portion of the business to be transferred from Hollard to Centriq is:
- All rights and liabilities in respect of the Value Added Policies (“VAPs”) underwritten by Hollard which is issued through the Imperial and Motus distribution channels and administered by M- Sure Financial Services Proprietary Limited (“M-Sure”), with an inception date on or after 1 July 2017 (“Transfer Policies”) and;
- The premium reserve held in respect of the Transfer Policies.
Details of the proposed transfer are set out in the Transfer Agreement, which will be available on Centriq (www.centriq.co.za), Hollard (www.hollard.co.za) and M-Sure’s (www.m-sure.co.za) websites from 25 March 2019 to 3 May 2019. The Agreement is subject to the fulfilment of conditions, which includes, amongst others, that the Prudential Authority approves the proposed transfer.
Because the Proposed Transfer envisages a transfer of policies from Hollard to Centriq without the Policyholders’ consent for the implementation of the Proposed Transfer, a detailed regulatory process is prescribed in terms of the Act, which includes, amongst others, the approval of the Proposed Transfer by the Prudential Authority.
If the Prudential Authority approves the Proposed Transfer this means that, the Policies will be transferred to Centriq who will become the new insurer of the Policies, responsible for fulfilment of all the obligations of Hollard towards the Policyholders of the Policies.
All policy terms and conditions will remain unchanged and all premiums and benefits will remain unaffected by the proposed transfer.
It is important to note that any person who has an interest in this matter may within the Inspection Period being 25 March 2019 to 3 May 2019 submit a representation to the Prudential Authority about the Proposed Transfer by no later than 3 May 2019. This transfer is subject to the approval of the Prudential Authority.
Please note that this transfer will not affect any of Centriq’s current clients and only affect those clients with existing policies with Hollard as specified above.
For a list of documentation including the transfer agreement between Hollard and Centriq as well as the Frequently Asked Questions please click here