Failing to understand the difference between a commercial short-term insurance policy and a personal lines policy with business use for a vehicle, has landed a financial advisory firm in hot water. The ombud for financial services providers, Naresh Tulsie, has ruled against Central Financial Advisors which trades as Coler Financial Services Providers in Bloemfontein, for “acting negligently” after an insurance claim by Bongani Nxumalo was rejected following the theft of his courier vehicle. The ombud found that Coler had “flouted the very contract he had with Nxumalo and the requirements of the Financial Advisory and Intermediary Services Act’s General Code of Conduct”. The firm was ordered to pay almost R145,000 to Nxumalo to cover the loss of his vehicle. Nxumalo, who was self employed as a courier, bought a Toyota Hilux vehicle with the intention of using it for courier work and had it fitted with a high-volume or courier canopy. He asked Coler Financial Services Providers to hel...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.