Insurance companies have been inundated with claims in 2021, but people have also been lodging complaints against insurance companies in record numbers.
Most insurance companies subscribe to Ombudsman schemes.
An Ombudsman is an independent official who helps the public by investigating their complaints against companies – in this case, insurance companies.
There are two major types of insurances – long term and short term – and both have their own Ombudsman to submit complaints to.
It is important to know the difference between these two types of insurance.
Short term insurance
This type of insurance provides cover for vehicles, property, home contents, medical/gap, travel, business or personal liability.
Long term insurance
This type of insurance provides cover in the event of death, funeral, disability, critical illness or credit life.
The Ombudsman for long-term insurance has had 8 300 requests for assistance in the first half of 2021, compared to 5 606 during the same period last year.
They’ve also recovered R77.9 million for complainants.
You can complain to the long-term insurance Ombudsman about the following:
- Where your claim has been declined by your insurer;
- If you are dissatisfied with the policy performance and maturity values;
- Poor service;
- Lapsing of your policy;
- If you are dissatisfied with your surrender or paid-up values;
- Partial payment of claims;
- Credit Retrenchment insurance.
The Long-term insurance Ombudsman deals with policies which provide:
- Annuities (but not retirement annuities);
- Life Insurance;
- Disability Insurance;
- Health Insurance;
- Funeral Insurance;
- Credit Life complaints;
- Hospital Plan Insurance;
- Dread disease Insurance.
The Long-term insurance Ombudsman cannot deal with the following complaints:
- That are not against life insurers;
- Financial advice or service by intermediaries;
- Pension and provident funds, retirement annuities and preservation funds;
- Short-term insurance;
- Labour disputes;
- Medical Aid;
- Debt review, credit issues, ITC/blacklisting complaints.
There is NO COST attached when you lay a complaint with the Office of the Long-term insurance Ombudsman. They can be contacted on:
Email: [email protected]
Sharecall: 0860 103 236
Tel: 021 657 5000
The Short–term Insurance Ombudsman deals with personalised short-term insurance disputes including disputes relating to:
- Motor Insurance
- Homeowners insurance (buildings)
- Household insurance (contents)
- Cellphone insurance
- Travel insurance
- Disability insurance
- Credit protection insurance
There is NO COST attached when you lay a complaint with the Office of the Short -term insurance Ombudsman.
They can be contacted on:
Email: [email protected]
Sharecall: 0860 726 890
Tel: 011726 8900
Be sure to protect yourself against fake funeral policies.
Sadly, there are still conmen and women out there selling fraudulent funeral policies.
This often means that when a death occurs and the family needs the money the most, no payout is made.
This can bring immense distress to families who had planned to give their loved ones a dignified burial.
The Financial Services Conduct Authority (FSCA) regulates financial services in South Africa, and has warned South Africans about common funeral policy scams to look out for.
Rather be safe than sorry and do these checks before handing over money for funeral policies.
Check that the business or entity is a registered financial services provider on the FSCA website at www.fsca.co.za or call them directly on 0800 20 37 22
Skelms do not care.
They will smooth talk, lie, cheat and steal to get what they want.
Covid has been financially hard on everyone.
Rather be safe than sorry and do the necessary checks that will give you peace of mind that you are dealing with a reputable insurer and company representative.
If you suspect you may be a victim of a scam, you can report it to the FSCA on 0800 20 37 22 or email: [email protected].