January 10, 2009
By Neesa Moodley-isaacs
The Office of the Ombud for Financial Services Providers has ordered an insurance broker to reimburse its client Marlon van Dorsen of Eldorado Park for the loss of his car because the company failed to ensure that the documents required for his car to be insured were submitted.
Van Dorsen was given financial advice exclusively by the company's receptionist, who was not licensed as a financial services provider in terms of the Financial Advisory and Intermediary Services Act.
This week, Noluntu Bam, the deputy ombud, found Pepina Zervas, the managing member of Bitline Brokers, and Bitline Brokers in Pretoria jointly and severally liable for Van Dorsen's loss.
Van Dorsen told Bam that on June 4, 2007 he realised that Auto & General had increased his premiums and decided to change insurers. He discussed this with Yvonne Barnard, a receptionist and clerk at Bitline Brokers, who faxed him quotations from Santam and Quicksure. Van Dorsen says he told Barnard that he would accept the Santam quotation. He emailed her his bank details and authorisation for deducting the monthly premium.
On June 20, Barnard told Van Dorsen that if he wished to accept the quote, he should sign it and fax it back to her, along with his updated bank details, a copy of his identity document and driver's licence. A week later she emailed him to confirm that he wanted to move his insurance to Santam. After she received confirmation from Van Dorsen, Barnard sent an email to the administrator for Santam, asking for cover to be arranged from July 1, 2007. She copied Van Dorsen on this email. Van Dorsen told Bam he was given the impression that the documents were no longer required since the cover was apparently already in place.
On July 13, Van Dorsen had a car accident. When he contacted Bitline Brokers on July 19 to inform them of the accident, Barnard asked him to submit the required documents, which he did later that day. On July 31, Santam told Van Dorsen that his car had not been insured because he had not submitted the outstanding documents.
'Gravely concerned'
In her ruling, Bam says there was no written proof that Barnard had told Van Dorsen his vehicle would not be insured unless he submitted the documents. She also questioned why Bitline Brokers had not ensured that Van Dorsen was first covered by Santam before cancelling his insurance with Auto & General.
Bam says she was gravely concerned by the fact that all interaction with Van Dorsen was left to a receptionist/clerk, and she would report the matter to the Financial Services Board for it to take the appropriate action.
Bam ordered Zervas and Bitline Brokers to pay Van Dorsen R113 700 plus interest of 15.5 percent calculated from July 14, 2007 to the date of payment.
  
 
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