Familiarise yourself with these insurance claims tips to fast track your claims process

ARTICLE BY

SHARE THIS POST

26 October 2021: Insurance – The outbreak of the Covid-19 pandemic has shone a spotlight on the need for consumers to familiarise themselves with their insurance cover and what they need to comply with in order to lodge a successful insurance claim, says Kabelo Gude, Chief Operations Officer at Hollard’s Life Solutions division.

Gude points out that, according to the 2020 Annual Report of the Ombudsman for Long-Term Insurers (OLTI), the Ombudsman received 14 198 requests for assistance in 2020, with 6 756 chargeable complaints. A chargeable complaint is one that has been reviewed by an organisation through its internal processes for it to be considered. Of those, 1 373 cases, or 32% of the cases lodged, were settled in favour of complainants.

In the period under review, the Ombudsman received 456 complaints directly related to Covid-19 or the lockdown, with the majority of these (36%) being about credit life benefits, while funeral cover disputes accounted for 42% of all complaints received by the office that year.

Gude points out that the most common complaints directed at long-term insurers over the past 18 months revolved around poor communication, failure to provide necessary information, and claim repudiations.

“Now more than ever, it’s essential for consumers and policy holders to familiarise themselves with their policies, to ensure that their premiums are up to date, to understand any exemptions and exclusions and know what their policies cover. Merely submitting certain documents to an insurer does not necessarily mean that a claim will be paid. Each type of claim has different requirements and may be assessed differently,” explains Gude.

He highlights the following around the claims process:

“The number of deaths in South Africa due to Covid-19 currently stands at just over 86 000, according to the National Department of Health, and we’ve seen some concerns raised by policyholders resulting from a lack of understanding of the claims process. This is not to say that a majority of claims aren’t paid – in fact, Covid-19 has seen Hollard pay out record amounts in death benefits, with just over R3,6 billion paid to date.

To ensure an efficient claims process, it’s important for policyholders to know how to make a claim. The most common mistake policyholders make is not submitting all necessary documents. Supporting documents are very important in terms of establishing the veracity of a claim, and these documents assist in fast-tracking the claims process.

Assigning third party persons to lodge a claim on behalf of a policyholder may have an impact on the outcome of the claim. Each claim is assessed on its individual merits. So, it’s essential that policyholders familiarise themselves with their policy cover,” Gude explains.

Gude notes that Covid-19 has placed many consumers under financial strain and that many consumers have started defaulting on their insurance premium payments to free up limited financial resources. He reminds policyholders that most funeral policies lapse after three payments have been missed.

“At Hollard policyholders who choose to reinstate their funeral policy within three months from the effective lapse date are not subjected to any waiting period and no arrear premiums are due, but this may not be the case with all insurers. Again, it’s essential for policyholders to understand what their particular policy says with respect to reinstatement”.

“We understand the financial strain that many consumers are facing, and that it has been exacerbated by Covid-19. While we appreciate that many pressing priorities are fighting for a share of wallet, the pandemic has taught us the importance of having active insurance cover because of the safety net it provides your loved ones. We encourage consumers who are battling to keep up with their premiums to consider reducing their payments and cover to ensure they can maintain cover.

“After all, insurance is important, but the importance is only realised when the unpredictable happens,” Gude concludes.

Subscriber Terms and Conditions

  1. APPLICATION OF TERMS
    • These terms and conditions (“Subscriber Terms”) apply to the subscription by any qualifying member of the South African Underwriting Managers Association NPC (“SAUMA”) to the services and benefits offered by FIA Services (Pty) Ltd (“FIA Services”) under the SAUMA affiliation arrangement (“Subscription”).

  2. NATURE OF SUBSCRIPTION
    • A Subscription under this arrangement:
      • does not constitute membership of FIA NPC;
      • does not confer any voting rights or governance participation in FIA NPC; and
      • is governed solely by the contractual relationship between the Subscriber and FIA Services.

  1. ELIGIBILITY
    • To qualify for the Subscription, the applicant must, at the time of application, be a current paid-up member of SAUMA.
    • FIA Services will verify the applicant’s SAUMA membership status with SAUMA prior to activation, and may re-verify such status periodically.
    • If a Subscriber ceases to be a paid-up member of SAUMA, the Subscription will correspondingly be terminated.
    • Applicants are required to authorise FIA Services to confirm their SAUMA membership status with SAUMA as part of the application process.

  1. SERVICES
    • The Subscription entitles the Subscriber to the following benefits:
      • Complimentary access to the FIA CPD Platform;
      • Complimentary access to the FIA Insight Magazine (digital edition);
      • Advertising opportunities on FIA platforms at a discounted rate of 15% (fifteen percent) off the prevailing published rates; and
      • Invitations to attend FIA Technical Webinars annually.
    • FIA Services reserves the right to update, vary or substitute the Services from time to time, provided that the overall value and nature of the benefits remain materially the same.

  1. FEES AND PAYMENT
    • The monthly subscription fee is R260.00 (two hundred and sixty rand) for up to seven registered individuals (Key Individuals and Representatives), and R36.00 (thirty-six rand) per additional registered individual thereafter, excluding VAT.
    • The Subscriber shall provide FIA Services with the required details of each individual to be registered under the Subscription for the purposes of activation and billing.
    • All fees are exclusive of VAT, which shall be charged at the prevailing statutory rate.
    • Subscription fees are reviewed annually in March and may be adjusted with effect from 1 April.
    • Any changes to the Subscription, including but not limited to the number of Representatives and Key Individuals registered under the Subscription, may only be effected once annually during the annual review period in March of each year, with such changes taking effect from 1 April.
    • Subscription fees shall be billed monthly in arrears, unless the Subscriber elects an annual billing cycle at the time of application.
    • The Subscriber shall ensure that all billing information (including contact details, authorised signatories and bank account details) is kept accurate and up to date.
    • Non-payment of subscription fees may result in suspension of access to the Services until such fees are brought up to date.
    • The Subscriber acknowledges and agrees that all subscription fees payable under these Subscriber Terms may be collected by way of debit order, which shall be processed by the holding company, FIA NPC (The Financial Intermediary Association of South Africa), on behalf of FIA Services. Payment to FIA NPC shall be deemed to constitute valid and sufficient discharge of the Subscriber’s payment obligations to FIA Services under these Subscriber Terms.

  1. ONBOARDING
    • Onboarding will be conducted as a Subscription with FIA Services under the SAUMA affiliation arrangement.
    • Onboarding will not confer FIA NPC membership status or any associated rights.
    • Onboarding is conditional on confirmation of the Subscriber’s current SAUMA membership at the time of application

  1. DATA PROTECTION
    • FIA Services will process all personal information in accordance with the Protection of Personal Information Act 4 of 2013 (POPIA) as set out in our POPIA policies.
    • By subscribing, the Subscriber authorises FIA Services to confirm their SAUMA membership status with SAUMA and to process personal information for the purposes of fulfilling the Subscription.

  1. TERMINATION
    • The Subscriber may terminate the Subscription by giving FIA Services one calendar month’s written notice.
    • FIA Services may terminate the Subscription on one calendar month’s written notice, or immediately if the Subscriber breaches these Subscriber Terms and fails to remedy such breach within 14 (fourteen) days of receiving written notice.
    • Termination of the SAUMA–FIA Services affiliation agreement shall not automatically terminate these Subscriber Terms.
    • Termination by the Subscriber shall not relieve the Subscriber of liability for any subscription fees accrued up to the effective date of termination.
    • FIA Services may suspend or terminate the Subscription with immediate effect in the event of non-payment of fees by the Subscriber.

  1. GENERAL
    • These Subscriber Terms are governed by the laws of the Republic of South Africa.
    • Any disputes arising under these Subscriber Terms shall be dealt with in accordance with the dispute resolution provisions contained in the FIA NPC membership terms and conditions, as modified to reflect that the contractual relationship is with FIA Services.
    • Any notices required under these Subscriber Terms may be validly delivered by email to the addresses provided in the Subscriber’s application form, and such notices shall be deemed received on the day of transmission if sent during business hours.
    • The Subscriber may not assign, cede or transfer any of its rights or obligations under these Subscriber Terms without the prior written consent of FIA Services.
    • No variation of these Subscriber Terms shall be of any force or effect unless reduced to writing and signed by both FIA Services and the Subscriber.