In May, the Ombudsman for Short-Term Insurance released its annual report for 2018 revealing almost 800 complaints (9% of all complaints in the industry) were received from Absa Insurance clients.
The report shows that more than R87 million was paid out to insurance clients in South Africa following complaints.
Almost 9,500 complaints were closed, and on average it took 104 days to settle the complaints.
Motor vehicle insurance represented 48% of the total number of finalised complaints.
But only 18% of motor vehicle insurance disputes were resolved in favour of the client.
This was even lower for household content insurance disputes (15%) and homeowner’s insurance disputes (12%).
In more than two-thirds of finalised complaints, consumers complained about the insurer’s decision on a claim.
Most complaints related to the rejection of a claim on the basis of an exclusion or warranty in the policy terms and conditions.