By Lize de la Harpe, 30 July 2013
The new standard replaces the Code on Unclaimed Benefits introduced by the former Life Offices' Association and adopted by ASISA in 2008 which was silent on what to do if beneficiaries cannot be located. For now the new standard only applies to unclaimed long-term insurance benefits, but the intention is to expand it to include collective investment scheme assets, as well as pension fund benefits.
The effect of this on the life business is that, as of 1 June, if you buy a life product, the policy documents need to inform the policyholder of the following:
The new standard requires member life assurance companies to report to ASISA once a year on statistics of tracing activities conducted and cases that have not been settled within three years. These statistics will be made available to the Financial Services Board.