Order bans activities in long-term insurance August 23, 2009

By Wiseman Khuzwayo

A black-owned insurance company, one of two in the country, is fighting to have a decision by the Financial Services Board (FSB) to put it under curatorship reversed.

New Era Life Insurance has applied to the North Gauteng High Court, in Pretoria, to challenge the court's July 7 decision to place it under provisional liquidation.

In its application, New Era says that information about the charges the curators are levying has not been forthcoming despite its requests.

It says that the curators are suspending or terminating the employment of its senior executives and adds that the payment of claims of policyholders are being held back and paid outside the usual process.

Under the order, the company is prohibited from undertaking any activities in the long-term insurance business.
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