Hollard Specialist Insurance Limited (registration number 1966/007612/06) ("Hollard") is a public company duly incorporated in terms of the Companies Act, 2008 ("Companies Act") and a subsidiary of Hollard Holdings Proprietary Limited.
Hollard is a licensed non-life insurer incorporated in 1952 which forms part of the Hollard group of companies, a large insurance group in South Africa which underwrites all classes of personal lines, non-life business as well as the majority of classes of commercial lines business.
CFAO Motors Insurance Limited (Registration Number 1999/001865/06) ("CFAO"), a public company with limited liability duly incorporated in terms of the Companies Act and is a subsidiary of CFAO Motors SA ("CFAO SA").
CFAO is a licensed non-life insurer and underwrites all classes of personal lines non-life business as well as specific classes of commercial lines business.
CFAO is currently the insurer of your policy. CFAO will be closing their insurance license to enable the CFAO group to focus on their core strategy of selling motor vehicles. Hollard and CFAO agreed that current clients would better be serviced under the Hollard banner, thus subject to approval by Prudential Authority as required in terms of section 50 of the Insurance Act, 2017 (“Insurance Act”) Hollard will become the new insurer of your policy. Hollard will accordingly become the new insurer of your policy after the approval of the transfer by the Prudential Authority ("Proposed Transfer").
The following non-life insurance policies underwritten by CFAO:
Vehicle Warranty Policies
Scratch and Dent Policies
Tyre and Rim Policies
Commercial Property Policy
The Transfer Policies will be transferred from CFAO to Hollard as part of a Cell Captive arrangement between Hollard and CFAO. This means that Hollard will become the new insurer of the Transfer Policies.
This Proposed Transfer is subject to the approval by the Prudential Authority (as required in terms of the Insurance Act) and has to follow a detailed regulatory process.
After approval of the Proposed Transfer by the Prudential Authority, Hollard will become the insurer of the Transfer Policies and provide policyholders with cover in terms of the Transfer Policies. All the terms and conditions of your CFAO policy will remain the same except Hollard will become the insurer of your policy.
No. Consent by a policyholder is not required for a transfer in terms of section 50 of the Insurance Act. You may raise concerns or queries through the various complaints channels that have been provided.
As consent is not required, a detailed regulatory process is prescribed in the Insurance Act and the Prudential Authority must approve the Proposed Transfer.
Cover in terms of the Transfer Policies will remain unchanged and benefits will remain the same.
The only change will be that after the approval of the Proposed Transfer by the Prudential Authority, the Transfer Policies will be underwritten by Hollard and you will deal with Hollard staff for all services and benefits provided in terms of your policy including any open claims that you may have at the time.
Yes. Policy benefits as per your current insurance contract will remain secured and will be unchanged. No additional charges or costs will be levied against any policy following the Proposed Transfer.
The transfer of the business of an insurance company is subject to a detailed regulatory process in terms of the Insurance Act and must be approved by the Prudential Authority.
The following steps in respect of the Proposed Transfer have already occurred:
Any policyholder of a Transfer Policy or other interested party affected by the Proposed Transfer may contact the Prudential Authority on any matter in connection with the Proposed Transfer by no later than 21 February 2022.
If you have an objection to the Proposed Transfer, you must make representations to the Prudential Authority by calling and/or emailing and/or writing to the Prudential Authority. These representations must reach the Prudential Authority by no later than 21 February 2022. If you do not have an objection to the Proposed Transfer, you do not have to file affidavits or make representations. Once the Prudential Authority approves the Proposed Transfer, your policy will be automatically transferred to Hollard. You may also object directly to Hollard or CFAO at the communication channels that will have been communicated to you.
Please note that the Ombudsman for Short Term Insurance and the Ombud for Financial Advisory and Intermediary Services will not be able to assist you in this matter.
You are allowed to make representations to Hollard or CFAO or to the Prudential Authority if you have any concerns about the Proposed Transfer. These representations must reach Hollard, CFAO or Prudential Authority no later than 21 February 2022. The contact details are set out below. You can also cancel your policy with the underwriter at any time and arrange cover with a different Insurer.
8.2 The documents available for inspection will include:
8.2.1 Copy the Media Transfer Notice;
8.2.2 Copy of the CFAO Section 50 Application Form;
8.2.3 CFAO audited financial statements, year ending 31 March 2021;
8.2.4 Hollard Specialist Insurance audited financial statements, year ending 30 June 2021;
8.2.5 Hollard Specialist pro-forma balance sheet (post-transfer);
9.1. Any claim that has not been fully settled will be transferred to Hollard on the same day as your policy is transferred and Hollard will finalise all aspect of my open claim. All claims that occur after the date of transfer must be notified to Hollard to process at the contact details that will be provided to you.
10.1 Please direct all queries as follows:
10.1.1 Telephonically: Hollard, at (031) 351 7600 and CFAO, at (031) 351 7600; and
10.1.2 Email: Hollard, at CFAOtransfer@hollard.co.za and CFAOtransfer@cfaomotors.co.za
Alternatively, please direct your enquiries to the Prudential Authority per email at SARB-PA@resbank.co.za