Article Ten Banks Dealing with Clients Requirements
| No: 188/441 | Date(g): 6/5/2020 | Date(h): 14/9/1441 | Status: In-Force |
1. Pre-marketing and distribution Communication with Clients:
1.1 Advertising:
| a) | Ensure that advertisements are not misleading, over-stated or offensive ; | |
| b) | Ensure that advertisements does not breach the laws or omit any regulatory requirement; | |
| c) | Ensure that advertisements does not damage Clients’ faith or exploit their lack of experience or knowledge. | |
| d) | Obtain the approval from the Company if the Company is mentioned in the advertisement. |
1.2 providing Advice:
| Banks shall provide advice on matters within their field of expertise and seek or recommend the help of experts when necessary. |
1.3 Client Service:
| a. | Understand all the terms and conditions of all policies offered to the Clients ; and | |
| b. | Understand the Clients’ profile, coverage needs, and appetite for risk. |
1.4 Regulatory Requirements:
| a. | The Bank shall ensure that all documents issued are consistent with the regulatory and supervisory requirements; |
1.5 Documentation:
| a. | Ensure that all written terms and conditions are fair in substance and that the Clients' rights and responsibilities are set out, clearly and inplain understandable language.; | |
| b. | Send policy documentation to the Clients without avoidable delay; | |
| c. | Send a written advice along with the policy documentation stressing on the importance of reading it carefully ; and | |
| d. | Ensure that instruction letters, policies and renewal documents contain details of complaints handling procedures. |
2. Marketing and distribution of Insurance Products and Services
2.1 Marketing and distribution Practices:
| a. | Ensure that the Clients understand the type of service being offered. | |
| b. | Ensure that the policy proposed is suitable for the Client’s needs; | |
| c. | Provide the Clients with comparisons in terms of price, coverage and services offered when offering several products. | |
| d. | Notify the Clients promptly if unable to obtain the requested insurance. | |
| e. | State the validity period for quotation if the proposed contract was not signed immediately; and | |
| f. | Explain to the Clients their obligations to file claims immediately and to disclose all material facts relevant to the insurance coverage. |
2.2 Providing of Information:
| a. | Request the Clients to make true, fair and complete disclosure and ensure that the consequences of nondisclosure of information and inaccuracies are pointed out to clients. ; | |
| b. | Avoid influencing and pressuring the Clients along with emphasizing that all acknowledges or statements given are his/her own responsibility. | |
| c. | Require the Clients to carefully check the information given in the documents. ; | |
| d. | Explain to the Clients the importance of disclosing all subsequent changes that might affect the coverage throughout the duration of the policy. ; and | |
| e. | Disclose of all information required for the purpose of insurance on behalf of the Clients with the Client's written consent and provide aclear presentation to the Company about the Client's risk description. |
2.3 Interpretation of Contracts:
| a. | Explain all the essential provisions of the coverage provided by the policy to Clients. ; | |
| b. | Notify the Clients with the Company’s quotation exactly as provided; and | |
| c. | Notify the Clients of any significant or unusual restrictions or exclusions in the insurance policy, and explain the termination procedures. |
2.4 Charges:
| a. | Disclose to the Clients the amount with the profits and commissions they are receiving upon selling the policy. | |
| b. | Inform the Clients in writing of any additional fees or charges for any related services. |
3 Post marketing and distribution Client Service
3.1 Confidentiality of Information:
| a. | Ensure that Clients data and confidential documents are stored safely with restricted access. ; and | |
| b. | Ensure that only relevant parties can obtain the Clients’ data such as the Company and external auditors of the Bank and the Company. |
3.2 Clients Notification:
| The Banks hall promptly communicate any notifications received from the Company to the Client related to his insurance policy, along with obtaining a receipt of acknowledgments. |
3.3 Renewal of Insurance Policy:
| a. | Ensure that renewal notifications include Clients’ duties to disclose changes affecting the policy, which have occurred since the policy inception or the last renewal date ; | |
| b. | Ensure that renewal notification contains a requirement for keeping records, including copies of letters, of all information supplied to the Company for the purpose of renewal of the contract ; | |
| c. | Ensure that the Clients are aware of the expiry date of the policy even if the Company has no intention to renew. | |
| d. | Ensure that the Clients receive the renewal notice of the policy issued by the Company before its expiration. |
3.4 Claims handling :
The Bank shall not approve or settle claims. However, the Bank shall:
| a. | Immediately acknowledge filed claims; | |
| b. | Provide claim forms along with clarifying the information or procedures needed to be done the Client to file the claim; | |
| c. | Provide adequate instructions to the Clients on filing claims and information on claim handling; | |
| d. | Provide the Clients with an acknowledgement of receipt or a notification of any missing information or documents, within seven days of receiving the claim; | |
| e. | Notify the Clients of any development regarding the claim at least once every 15 working days; | |
| f. | Notify the Clients in writing of claim acceptance or rejection; and | |
| g. | Explain the method of filing complaints and procedures of dispute resolution if the Client is not satisfied with the settlement reached. |
3.5 Client Complaints:
| a. | Receive complaints, by phone or in writing such as letters, e-mail or fax; | |
| b. | Explain complaint filing procedures; | |
| c. | Provide the Clients with the contact information of the Company to follow up on their complaints; | |
| d. | Notify the Clients of the developments in their complaints; | |
| e. | Respond to the complaints within (15) days of filing; and | |
| f. | Maintain an electronic system to record and follow up on complaints. |