2015 Ombudsman report review SA’s short-term insurers

This overview of the Ombudsman’s report is sponsored by Outsurance

The Ombudsman for Short-Term Insurance (OSTI) has released the annual report for the 2015 calendar year. The Office of the Ombudsman provides consumers with an independent dispute resolution mechanism should they feel that they have been unfairly treated by their insurer.

(Outsurance analysis of the 2015 OSTI Annual Report)

It is important to note that the office of the Ombudsman has “limited jurisdiction over commercial lines policies and, in any event, has jurisdiction for personal lines business only up to R2 million, save for home owners claims where the jurisdictional limit is R4 million”. As such the statistics provided in the report focus only on personal lines claims (statistics provided by the Financial Services Board) and personal lines complaints received by the Ombudsman.

Clients may only make use of OSTI once all attempts to resolve their claim with the insurance company have failed.

During 2015, Osti received a total of 9 784 complaints. This is slightly down from 10 253 complaints lodged in 2014. Most complaints related to short term vehicle insurance.

The Short-term Insurance Ombudsman says the decrease in complaints is due to success of campaigns like the Treating Customers Fairly initiative that is changing the way insurers approach claims resolution.

Of the 10 insurers assessed, Zurich had the lowest number of complaints (1.1) received per 1,000 claims. Outsurance and Hollard had the second lowest rate at 1.8 complaints for every 1000 received.

When looking at the overturn rate (i.e. the number of times an insurer’s decision is overturned by the Ombudsman) Outsurance had 13% of complaints overturned, whilst MiWay had 13.8% and Alexander Forbes came in next at 14% against an industry average of 27%.

The Ombudsman noted that he had not needed to make any Final Ruling against any insurer during the year under review. A Final Ruling is made when the Ombudsman’s recommendation to an insurer is not acted to his satisfaction.

Read More
SOE health check is failing dismally

SOE health check is failing dismally

Corporate governance researcher, Lynn Mcgregory, measures the health of South Africa's state owned enterprises.

"Sounds like a variant of the old 'tech support scam'"

"Sounds like a variant of the old 'tech support scam'"

My Broadband's Jan Vermeulen says the 'sim swap scam' sounds like a rejigged version of an older con that did the rounds.

Outa lays treason charges against Minister Faith Muthambi

Outa lays treason charges against Minister Faith Muthambi

Outa claims the Minister of Communications deliberately shared three confidential Cabinet memoranda with the Guptas.

Strand Street Concourse gets a facelift

Strand Street Concourse gets a facelift

The City of Cape Town is revitilising the CBD and the municipal courts will move to the revamped Concourse.

[Watch] Sunday snowfall on Table Mountain

[Watch] Sunday snowfall on Table Mountain

Snow fell on Matroosberg and Hottentots Holland, but cold front may be the last decent rains for the traditionally wet Cape July.

"It's not about Hlaudi, it's about the institution"

"It's not about Hlaudi, it's about the institution"

Interim SABC Board chair Khanyisile Kweyama says the broadcaster is calling for public comment on its editorial policies.

Popular articles
Home Affairs to follow up on special dispensation permit for Zimbabweans in SA

Home Affairs to follow up on special dispensation permit for Zimbabweans in SA

Home Affairs Minister Hlengiwe Mkhize says her department will respond to all Zimbabweans under special dispensation.

702 opens Walk the Talk entries, welcomes new sponsor MTN SA

702 opens Walk the Talk entries, welcomes new sponsor MTN SA

702 has officially launched The MTN Walk the Talk with 702 for 2017, and the 15-year event is getting better and bigger.

Getting to know MP, Dr Makhosi Khoza

Getting to know MP, Dr Makhosi Khoza

Dr Khoza is admired by South Africans for her role in the SABC inquiry as a ANC member of parliament.

Earn peanuts? How to best invest very small amounts...

Earn peanuts? How to best invest very small amounts...

Got a spare R200 or R300 a month? Here’s how to make that money work hard and grow…

Meet the founder of Capitec Bank, named ‘Best Bank on Earth and Cheapest in SA’

Meet the founder of Capitec Bank, named ‘Best Bank on Earth and Cheapest in SA’

Michiel le Roux speaks about the fascinating story behind the little bank that has the Big 4 shaking in their boots.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Blesserfinder: Matching you with a sugar daddy near you

Blesserfinder: Matching you with a sugar daddy near you

Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?