Welcome to Debella! A Solution for Motor
Dealers - Protection for Motorists
Important Notice
The FSB has now issued Directive 156.A.i (ST) which sets out exactly how the IGF issues must be addressed by Motor Dealers. A brief summary
of this directive is set out below.
- A Motor Dealer cannot be authorised by the policyholder (client) to collect any
warranty premiums.
- A Motor Dealer must be authorised by the Insurer to deal with (collect) premiums
AND
- A Motor Dealer must have the necessary security (IGF cover or suitable Bank Guarantee)
- The directive does recognise group or collective security but subject to some very
stringent conditions
Please Note:
These conditions became of force and effect on the 15th September 2011 from which date all motor dealers and warranty administrators were required to comply with the Directive.
If any motor dealer or warranty administrator was not able to comply with the directions contained in this Directive by the 15th September 2011 then a full report should have been sent to the Registrar explaining the situation and providing details of what was to be done to rectify the situation.
If any motor dealer has not complied with the Directive, please read paragraph 6 of the Directive. Please note that any motor dealer who sells any form of extended motor warranty, tyre or rim warranty or dent and paint warranty is an “intermediary” for the purposes of the Directive.
Click here to download a
copy of the Directive
The Debella system is 100% compliant with the Directive, if you are using the Debella system to invoice for warranties, you can rest assured that you are complying with the law.
When buying a motor car – especially a pre-owned motor car – most
motorists usually consider including some or other form of warranty as part of their
purchase.
These can include:
- Mechanical breakdown insurance or extended motor warranties
- Dent and paint repair insurance
- Tyre and wheel insurance
- Small damage insurance (e.g. SMART)
Motorists Beware!
If the motor dealer has not fulfilled certain obligations, you run a risk of losing
the amount of the premium and finding that you are not covered by the warranty.
Motor Dealers Beware!
If you have not fulfilled certain obligations, you are committing a criminal offence
and exposing you customer and your business to unnecessary risk.
Some background first . . .
When a person buys a motor car with a warranty from a motor dealer, the dealer will
include the price of the warranty in the total payable by that person. For example,
a person buys a motor car for R75 000 and includes an extended motor warranty that
costs a further R5 000. The total thus payable is R80 000.
The buyer may pay this amount in cash or, more usually, will arrange for a bank
to finance the transaction. In that case, the bank will pay the motor dealer a total
of R80 000 for the motor car and the warranty that has been sold.
In this example the amount of R5 000 which is included in the total of R80 000 that
is paid to the motor dealer, represents a premium on the warranty.
These types of warranties are all short term insurance products and are regulated
by the Short Term Insurance Act 1998. In practice this means that the motor dealer
must be authorised by the short term insurer to collect the premiums on its behalf,
if the motor dealer is not authorised, then no insurance comes into existence until
the premium is paid by the motor dealer to the insurer – and buyers have no control
over that.
Debella is a unique solution for motor dealers who sell extended motor warranties.
What Motor Dealers
should know . . .
Debella is also a unique solution for motorists who buy extended motor warranties
from motor dealers
What Motorist should
know . . .