KGA Life Limited v Multisure Corporation (Pty) Ltd and Others (with Funeral Federation of South Africa intervening as Amicus Curiae)

KGA Life Limited, a licensed insurer, and Multisure Corporation (Pty) Ltd, an independent intermediary, concluded an Intermediary Agreement and Master Policy in January 2015 establishing a group funeral insurance scheme for Multisure’s clients, most of whom were SASSA grant beneficiaries. Premiums were deducted via SASSA and administered by Q Link. After the Insurance Act 18 of 2017 came into force, materially altering the regulation of group insurance schemes, Multisure purported to cancel the agreement with KGA and sought to replace KGA with African Unity Life Limited as underwriter, including redirecting premium deductions. The High Court granted orders giving effect to the cancellation and transfer. KGA appealed, contending that after the 2017 Act the group scheme was unlawful and unenforceable, and therefore incapable of cancellation or transfer.

The appeal was upheld. The High Court’s order was set aside and replaced with an order dismissing Multisure’s application, with no order as to costs. The application to adduce further evidence on appeal was dismissed with costs, and the Registrar was directed to refer the judgment to the Prudential Authority.

The case clarifies the impact of the Insurance Act 18 of 2017 on pre-existing group insurance arrangements and confirms that non-compliant group schemes become unenforceable due to supervening illegality. It underscores the strict licensing and definitional requirements for group insurance and limits the role of intermediaries in the funeral insurance sector post-2017.