Guiding consumers since 2009

Households will be covered for Orkney earthquake

By Staff Writer
By Angelique Ruzicka, editor, Justmoney

 
Absa have issued a statement saying that clients who were affected by the Orkney incident will have their claims upheld. This comes after research conducted by Justmoney which found that the Absa idirect insurance policy wording on the bank’s website states that it will compensate clients for ‘Earthquake, except for earth tremors caused by mining operations.” 

 
But Dante Mashile, group media relations manager for Absa said: “Absa's Home Owners Policy does in fact cover damage caused by mining-related earth tremors. We received approximately 1100 claims linked to the event on 5 August and are in the process of finalising these as and when the estimations reports come through. We are fully committed to ensuring that our customers affected by the tremors are settled in the quickest possible time.”

 
The Council for Geoscience told Justmoney earlier this month that the Orkney earthquake was mining related.
Absa was not the only provider which had this type of clause in its insurance policies as Justmoney reported earlier in the week. 

 
Meanwhile, underwriter MUA Insurance Acceptances revealed this week that following the Orkney incident it had changed the wording on its insurance policy. “Following the 5.5 magnitude tremor experienced in Gauteng and other parts of South Africa on Tuesday 05 August 2014, MUA reviewed its policy wording and decided to remove an antiquated exclusion which previously excluded damage caused by an earthquake, if it was determined that the earthquake was caused by mining-related activities. MUA realised that this exclusion was historical in nature and removed this exclusion in order to treat customers more fairly, in line with the Treating Customers Fairly (TCF) legislation,” said Christelle Fourie, managing director of MUA in a statement.  

 
She added: “Following this change to the policy wording made on 8 August 2014, all MUA clients – new and existing – now benefit from full cover for any damage caused by any earthquake with no exclusions. Furthermore, this benefit will be applied retroactively to cover all losses reported as a result of the 5 August 2014 earthquake MUA has admitted liability for all claims reported to us during this period.”

 
Finally broker Addsure, which was included in the survey, said that it is advising its clients to take out newer policies that provide wider coverage: “Some older policies issued by insurers have exclusions such as mining related causes. Addsure does not issue policies. Addsure advise clients to take out the wider and newer type policies. Sectional Title require earthquake cover and we arrange such, mining activity included,” said Mike Addison, director of Addsure. 
 
 
 

Recent Articles

Featured How are you taxed on your retrenchment package?

Unemployment is one of the biggest problems in South Africa. The emergence of the Covid-19 pandemic has exacerbated the situation with a lot of companies retrenching their employees.  When retrenched, you’ll receive a retrenchment package, but do you know how much tax you’re liable for?

Car repossessed – don’t be taken for a ride

When the country is facing an economic downturn, chances are your finances will feel the pinch. This can lead you to make bad financial decisions such as skipping your vehicle payments. But every decision has consequences and if you don’t pay your instalment, the bank will repossess your car. But what can you do when this happens?

 

Why you should consider gap cover

Your medical aid should protect you from incurring large medical bills when you’re sick. But what if your plan doesn’t cover the full cost of your medical expenses? We got in touch with insurance experts to find out whether gap cover is worth having.

Debt relief - What is your bank offering?

Going through a financial crisis is stressful whether it be as a result of losing your job, being short-paid, having to fork out towards an emergency payment, or finding yourself in the midst of a global pandemic. This is especially taxing if you have a debt to service. It is against this backdrop that banks are increasingly offering payment holidays. Justmoney looks at the various debt relief options available to you from the big five banks.

Deals

Premier Hotel and Resorts Special For Senior Citizens

Price: Available on request
When: Daily
Where: Nationwide

The President hotel 10% discount for locals

Price: Available on request
When: Until 31 October 2020
Where: Cape Town

Get 40% off when you book your stay at Colosseum Hotel

Price: Available on request
When: Until 13 December
Where: Cape Town


Latest Guide

Guide to debt rehabilitation solutions