Listen: Why do insurers turn claims down?

Media coverage around disallowed claims by life insurers has tarnished the industry. In this podcast, Maya Fisher-French and Mapalo Makhu chat to Dr Thabani Nkwanyana, lead specialist medical officer at Liberty on why a claim would be turned down – your rights and responsibilities. We also look at the principle of re-constituting a policy in the case of non-disclosure. Is this a fairer option to both the customer and the insurer?

 

2 CommentsLeave a comment

  • Hi Maya

    Just listened to this podcast as it is very relevant to some recent research I have been doing with regards life-insurance policy. I have discovered, if I have been informed correctly, that there are certain life cover products that payout regardless of a non-disclosure. I don’t recall what this type of policy is called but as far as I understand this is something Absa life offers. Can you possibly elaborate and do you know anything more about this. I was lead to understand that the policy was a given irrespective of a later developing illness that I did not disclose. I am totally all for absolute honesty, but had I not done a little research lately I wouldn’t have realized that I HAD to disclose any new illnesses or conditions. So I think many people just don’t realize that they need to inform their life cover advisors.

    • You don’t have to disclose new conditions for existing policies – only if you are taking out a new policy. The only policy that would pay out without disclosure would be one that is not underwritten. Those are more expensive and they may have a clause in them that exempts certain conditions. So it is about reading the fine print VERY carefully.

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