Gripes About South African Life Insurance On The Rise |
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23 April - According to the latest reports from the long-term insurance ombudsman, complaints about South African life insurance providers is on the increase. The number of grievances filed in 2006 was 9234, which represents a rise of 3% from the figures for 2005. Interestingly, the bulk of those complaints were made against smaller life insurance companies. South African life insurance coverage is dominated by four big companies, with over 70% market share, yet they were responsible for only 31% of cases recieved by the ombudsman. This goes against the perception that the big insurance companies do not take care of individual clients who can get lost in the shuffle. Instead it was the small companies that failed to deliver in terms of customer service or the more serious grievance of declining a claim. When it comes to life insurance policies the last thing people involved want is to find that the claim will not be honoured, and more than 40% of all cases in 2006 were about this very problem. Poor customer service was the next leading cause for complaint, followed by poor communication. So how were the cases resolved? 48% were settled in favour of the clients, with the insurance companies getting the benefit of the doubt the other 52% of the time. This also marked an improvement for the man on the street who only won 42% of cases in 2005. A new ombudsman will be in charge of South African insurance industry by next month, with the current judge stepping down after a four-year stint. Please remember that the onus is on you the client to do your homework and find an insurance provider that is honourable and reputable. Shop around and make the insurance companies compete for your business. But know that if you are unhappy with the service you get from them that the ombudsman is there as an impartial arbiter to protect your interests. Related Insurance Articles: * Old Mutual Posts Strong First Quarter Results * Sanlam Set To Offer Direct Life Insurance * SA Insurance Companies Beset By Fraudulent Claims * SA Car And Home Insurance Risk Factors * South African Home Insurance Tips * Car Insurance Coverage For Repairs - The Facts * Less Than Half Of South Africa Has Car Insurance * Insurance Risks With Used Cars In South Africa 
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| 3/14/2010 7:06:29 AM | |||||||||||||||||||||
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