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Ombudsman for Short-Term Insurance (OSTI) released its annual report for 2018 in April 2019 that looked at its key figures regarding disputes between consumers and short-term insurers. Without surprise, vehicle-related complaints made up 48,2% of the overall amount of complaints.
Out of a total of 9474 complaints, 4 716 of them were vehicle-related and 824 of them were actually resolved. The majority of complaints at 74% were for accidental damage. It must, however, be stated that only 18% of motor vehicle insurance disputes were resolved in favor of the insured.
Below is a table we created with data extracted from the OSTI Report on Insurer Statistics with insurers who offer vehicle cover.
(The below information is not only related to motor vehicle-based claims)
OSTI Senior Assistant Ombudsman, Ayanda Mazwi, commented that “36% of the claims, related to the rejection of a claim based on an exclusion or warranty in the policy terms and conditions.”
She further related the matter to the fact that “many consumers do not know or understand what is in their policy documents.”
Concerning our previous blog ‘Why do I need car insurance?‘, Shop smart. Read your policies, then read them again. Ask your broker or insurance provider for clarity on anything you don’t understand.
Read the OSTI 2018 report at the following URL; https://www.osti.co.za/media/1300/osti_annual-report_final.pdf