Guiding consumers since 2009

Complaints to insurance ombudsman increased

By Staff Writer

The ombudsman for long-term insurance said on Tuesday that 9 236 complaints were received in 2010, an increase of 2% from the previous year.

The ombudsman for long-term insurance has revealed that over 9000 complaints were received in 2010, up 2% from the previous year.  In total, 9236 complaints were submitted.
Ombudsman Brian Galgut said that this was a new record.

"A general increase in all categories of complaints was experienced," Galgut said at the release of the office's annual report.

"We directed 2 204 complaints to insurers to deal with, as the complainant had not given the insurers concerned sufficient opportunity to deal with them in accordance with the insurers' complaints processes."

These complaints were sent as "mini" cases, or as transfers to internal arbitrators.

In all 4 115 complaints translated into full cases requiring full investigation by the office.

"Most of the complaints received by our office, 66%, are sent by fax.

"The greatest number of our complainants, 28%, live in Gauteng, with KwaZulu-Natal second at 21%," Galgut said.
He said fewer cases were closed last year than in 2009, but the 2009 figures were inflated because 500 were carried over from  previous years.

Galgut said that cases about funeral policies continued to increase and this type of policy constituted 36% of cases finalised by his office.

"Our turnaround times were comparable to 2009, and 79% of cases were closed within six months. We recovered R103 484 956 for complainants in the form of lump sum amounts. This does not include other forms of relief such as income benefits or resolutions not sounding in money, for example, reinstatements."

He added that, in one case, about  R21m had been recovered - the largest amount  in a single complaint by his office to date.

Recent Articles

Featured Everything you should know about tax auto assessment

In 2019, the South African Revenue Service (SARS) launched a system, which was dubbed an “auto assessment”, to assist taxpayers with their annual tax returns. But what does this system entail, and how will it impact you?

What does it mean to be a registered Financial Services Provider?

You may have noticed that financial institutions state that they’re registered Financial Services Providers (FSP). But what does this actually mean, and how does this benefit you as a consumer?

Should the retirement age change?

Across the world, people are retiring later than they used to. However, retirement products are centred around set retirement ages at which point you’d be able to access your retirement savings. But how applicable is the current retirement age in South Africa?

Everything you need to know about wills

Death can leave a lot of confusion and chaos. What happens to your possessions when you die can have a profound effect on those you leave behind. But you can soften the impact by drawing up a will.

Deals

Get 30% off your gym membership with Absa student account

Price: Available on request
When: Daily
Where: Nationwide

Get 10% discount on Rentalcars.com

Price: Available on request
When: Daily
Where: Worldwide

Get up to R5 back in rewards points when buying fuel

Price: Available on request
When: Daily
Where: Nationwide


Latest Guide

Guide to debt rehabilitation solutions