The ombudsman for long-term insurance (OLTI) wants lawmakers to reconsider non-disclosure laws which enable insurers to out-and-out reject claims, wrote consumer journalist Wendy Knowler in TimesLIVE on Wednesday.
The OLTI’s 2018 annual report dealt extensively with the notorious “Ganas case” when Momentum Life rejected Denise Ganas's claim on her husband death policy because he failed to disclose high blood sugar levels when he applied in 2014.
Ganas died in a hijacking in 2017.
Momentum had the law on their side (and the OLTI ruled in its favour), but the company bowed to immense public pressure and paid out the claim.
The OLTI wants insurers faced with "non-fraudulent misrepresentation" to “reconstruct” the policy to what it would’ve been had the misrepresentation not taken place.
Also, by Knowler:
- [Exposed] Car dealerships, banks in cahoots; you’re not always getting best deal
The OLTI’s 2018 annual report had harsh words for some insurers.
Alexander Forbes Life – Ordered to pay compensation for causing a client "distress, inconvenience and financial loss". It slammed the insurer’s “incomplete responses and lack of supporting documentation”.
Another insurer only paid a R1000 funeral claim for a stillborn baby after the OLTI mediated.
- Sanlam Developing Markets refused a funeral claim after the passing of a “second cousin” who had been labelled as a "cousin" by the claimant. The OLTI ordered the company to pay the claim as the term “cousin” in the market it operates in includes second cousins.
Listen to the interview in the audio below (and scroll down for more quotes from it).
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:
Recommendedby NEWSROOM AI
Its MyWORLD account is the cheapest in South Africa. Bruce Whitfield interviews Basani Maluleke, CEO at African Bank.
The Money Show’s Bruce Whitfield asks Peter Armitage, CEO at Anchor Capital, for his stock picks of the week.
Consumer journalist Wendy Knowler uncovered evidence of banks sending dealer principles on holidays abroad for hitting targets.
Capitec Bank, however, is keeping its customers decidedly happy. Bruce Whitfield interviews consumer journalist Wendy Knowler.
There are dangers, but you can save money and take control. Ray White interviews Francois Strydom (Momentum Securities).
The Money Show’s Bruce Whitfield interviews Daniel Baines, author of “How to get a SARS Refund”.
Specialists diagnosed the singer with pancreatic cancer in 2015.
A probe found "suspicious transactions" worth R1.2bn, bribery and theft. Bruce Whitfield interviews EOH CEO Stephen Van Coller.
Journalist and author Mandy Wiener describes former footballer Marc Batchelor's links to alleged underworld figures.
Former Sars employee Bizoski Manyike responds to the Sunday Times article that called him a 'dope-smoking Rastafarian'.
Castle Lager came in second, followed by FNB, Black Label, Discovery and Vodacom, according to the 2019 Brand Finance report.
The Money Show’s Bruce Whitfield asks Henry Biddlecombe (an analyst at Anchor Capital) for his stock picks of the week.
Bruce Whitfield interviews Phillip de Wet (Business Insider), Robert Walton (Boutique Collective Investments) and Brandon Topham.
Investigative journalist Jacques Pauw says he's sorry for any harm caused in his article on Mkhwebane and her principal witness.
For this week's #GoodNewsThursdays, we find out the inspiration behind the production.