Abstract
Insurance is centered on the management of risk whereby risk is transferred to a third party who
is the insurer who undertakes to bear the risk on behalf of the insured.1 The relationship between
the insured and the insurer is regulated by the insurance contract and this contract plays an
important role in detailing the terms and conditions to which the parties are bound to.2
It should be kept in mind that insurance is not only a nominate contract but also a financial
product.3 It is therefore imperative that the financial services sector be well regulated and stable
due to the likelihood of financial customers being ill-treated and or abused.4 This can potentially
occur in the form of excessive fees, inconceivable charges, design and sale of unsuitable products
and even illegal debt collection services.5 Furthermore, there is always the risk that the customers
do not fully comprehend the contracts they enter into and do not understand their rights and duties
in terms thereof.6 It therefore makes sense that the financial sector be highly regulated, and this is
also true in terms of the insurance industry.
Parties to all contracts obviously enjoy the autonomy and the flexibility allowed by the negotiation
process.7 In the insurance industry, fairness is a central concept that has been observed in different
spheres of the product life cycle especially in consideration of the market conduct aspect of
insurance.8 This is exemplified by the provisions on advertising, data management, review of
product line performance, conflict of interest, time bar clauses, cooling off rights, statutory period
of grace, fairer dispensation for policyholders and complaints management...