The Insurance Bill that was passed in the National Assembly with more than 200 votes generated heated debate in the House.
Finance Minister Malusi Gigaga says the Bill is just one of the various pieces of proposed legislation to transform and regulate the financial sector.
The Insurance Bill seeks to promote the maintenance of a fair, safe and stable insurance market for the benefit and protection of policyholders.
The Insurance Bill also aims to transform the sector and increase access to insurance for all South Africans.
Speaking in the National Assembly at the start of the debate on the Bill Gigaba, explains the significance of the bill.
“Several minor amendments were made to the bill so that it can be properly aligned with the Financial Sector Regulator Act. The enhanced Prudential Framework for insurers forms part of phase two of Twin Peaks reforms.”
“Prudential supervision of insurers will be enforced in the new prudential authority under the South African Reserve Bank. Phase one was the passage of the Financial Sector Regulation Act.”
The Democratic Alliance opposed the bill describing it as a Cinderella Bill. It says the amendment to the objectives of the bill required further public participation.
The DA also argued that the bill was never circulated electronically or in hard copy to members of the National Assembly for them to make an informed decision on whether or not to vote on the bill.
DA MP David Maynier says:”Amending the objectives of the bill amounted to expanding the subject of the bill which should have been dealt with in terms for National Assembly 286 (4) B. And that further public hearing should have been convened. However the argument was rejected and no further public hearings were convened.”
But Parliament’s Finance Committee Chairperson and ANC MP, Yunus Carrim, rejected the claims by Maynier that there was insufficient public participation on the Bill.
“Now on the matter of Public Hearings, we are the only committee in this Parliament that I know of that allows public hearings beyond what the rules provide for. You can come on the day we vote on a bill and you can have a say on a bill.”
“So what is the problem without consultation? In fact this system primarily benefits the DA’s constituency, because who turns up to Parliament all the time?”
The EFF, which supports the bill, also slammed the DA for questioning some of the sections dealing with transformation in the bill.
EFF MP Thembinkosi Rawula says more black people are needed to enter the insurance market.
Attempts by the Democratic Alliance to remove the transformation as the objective of the Insurance Bill is nothing but a racist anti-blacks and backward looking. If we make laws according to the DA, South Africa’s Economy will remain in the hands of the few white for their benefits, while the majority of black people remain in poverty and low paying jobs.”
“The EFF had initially made a concrete proposal. We call for a minimum of 50 % back ownership and 30 % women and people with disability to qualify for licenses. We further call for prudential authority to ensure that a minimum of 40 % license issues is issues to black owned insurers.”
The IFP’s Mkhuleko Hlengwa says if there are concerns about the bill the NCOP can further consider them.
The Bill was passed with more than 200 votes. National Assembly House Chairperson, Matlala Borotho, reading the results after the DA called for a division for voting to take place from the allocated seats of MPs.
