Airborne consultants referred to the FSB

By Danielle van Wyk

Airborne Insurance Consultants (Pty) Limited are the latest company to come under fire with the Financial Service Board (FSB). They were referred by the Registrar of Short-term Insurance to the Enforcement Committee of the FSB.

The referral related to a contravention of section 8(2) (d) of the Short-term Insurance Act, 53 of 1998. “The Registrar established that during the period from 1 April 2015 to 27 August 2015 Airborne operated a fleet arrangement scheme under the name and style of Blades of Glory Rotor Wing Fleet Insurance Facility. Under the aforementioned scheme Airborne arranged and placed short-term insurance cover for aircrafts outside South Africa without obtaining the required approval from the Registrar and without adherence to the procedure set out by Directive 149 A.v. regarding the placing of insurance business outside the borders of South Africa,” stated the FSB.

In deciding a penalty the Registrar considered that the domestic market was being discriminated against by virtue of the fact that Airborne failed to obtain the Registrar’s approval for each application.

“Moreover Airborne has been penalised before in relation to a contravention of section 8(2) (d) of the Act for not following the prescribed procedure,” added the FSB.

However, it was further found and taken into account that the contravention was as a result of a misunderstanding of the law. “Airborne held a bona fidebelief that it had complied with the applicable legislation when it submitted a single application for the Blades of Glory scheme. Airborne incorrectly believed that additional aircrafts placed under the aforementioned scheme fell under the initial approval by the Registrar,” the FSB reported.

The company continued to admit to the breach and promptly rectified it after being made aware of it.

“The Registrar is not aware of any prejudice suffered by any policyholders as a result of Airborne’s conduct. Consequently, the Registrar agreed that Airborne pay a penalty of R150 000,” concluded the FSB. 

Recent Articles

Featured The perks of investing in student accommodation

With the constant influx of new students entering tertiary institutions, there’s usually a steady demand for student accommodation. As an investor who’s interested in the property market, should you consider student accommodation?

Are you financially secure enough to buy your first home?

When you buy your first home, you need to make sure you’re in a secure financial position so that you can stay afloat in spite of your increased financial responsibility. But are you aware of all the costs you’ll have to carry?

If someone had your medical aid details, could they benefit in your name?

With credit fraud on the rise, most of us know the importance of keeping our general personal details safe, such as ID number, home address, and contact details. But were you aware of the need to keep your medical aid or insurance details safe?

Can your insurance application be rejected because of your credit score?

A credit score is used by lenders to determine how likely it is that you will repay a loan on time. It is also a factor in interest rates and loan qualifications.

But can it be used to determine the success of your insurance application?


Rouge Day Spa Tuesday Special

Price: Available on request
When: Tuesdays
Where: Cape Town

Monte Vista Two Nights Special

Price: Available on request
When: Until 31 December 2021
Where: Montagu

Century City Hotel 4 Nights Special

Price: From R1100
When: Until 31 January 2021
Where: Cape Town

Latest Guide

Guide to debt rehabilitation solutions