Pinetown brokerage pays for poor insurance advice
Advisers must be proactive in ensuring clients make informed decisions
Financial services providers have an obligation to place clients in a position to make informed decisions by providing all material information upfront. Failure to do so could land you in hot water, as a financial services broker in Pinetown, KwaZulu-Natal, learned recently. The industry ombud ordered CDK Event Solutions, trading as CDK Brokers, to cover the full cost of a stolen Toyota Hilux after an insurance provider rejected a claim based on the vehicle being fitted with an incorrect tracker device. Western National Insurance rejected an insurance claim of business owner Krish Moodliar as his Hilux did not have an early-warning tracker system installed — a condition of cover for that vehicle model. The insurance policy stipulated that all vehicles worth over R150,000 needed to have such a tracker system in place. CDK Brokers, a duly registered financial services brokerage, had advised Moodliar of insurance coverage for his fleet of logistics vehicles. When the Hilux was stolen, ...
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