Covid-19 Outbreak SA Online Resource | More info
Insurance, Car Insurance, Funeral Cover, Life Insurance, Budget Insurance, Insurance Quotes, CompareGuru, South Africa.
Car and Household
Business
Life and Funeral
Car Insurance
Cover your vehicle
More Information
Get Quote
Pre-Owned Warranty
Cover the mechanical and electrical components of your vehicle
More Information
Get Quote
Extended Warranty
Cover the mechanical and electrical components of your vehicle
More Information
Get Quote
Scratch and Dent
Cover small dents, chips and scratches to your vehicle
More Information
Get Quote
Tyre and Rim
Cover damages to your wheels
More Information
Get Quote
Home Insurance
Cover your home and everything in it
More Information
Get Quote
Commercial Vehicle Insurance
Protect vehicles and drivers used in the day-to-day operation of your business against risks like financial loss, damage or personal injury.
More Information
Get Quote
Commercial Insurance
Provide cover against common risks and disruptions to business operations, such as theft, damage to property, employee / client injury and much more.
More Information
Get Quote
Directors and Officers Liability
Safeguard your business and key players from financial loss with the right policy.
More Information
Get Quote
Errors and Omissions Liability
Covers your business and employees against claims of negligence, poor workmanship, and more.
More Information
Get Quote
Life Insurance
Provide for your loved ones
More Information
Get Quote
Disability Insurance
Protect your paycheck
More Information
Get Quote
Serious Illness Insurance
Cover yourself for illnesses like cancer, Alzheimers, Parkinsons, strokes or heart attacks.
More Information
Get Quote
Funeral Cover
Protect your family financially and cover funeral expenses
More Information
Get Quote
Domestic Worker Insurance
Cover the person that looks after you and your family everyday
More Information
Get Quote
Menu
Home
About Us
Domestic Worker Cover Quote
Life Insurance Quote
Car Insurance Quote
Funeral Insurance Quote
Extended Warranty Quote
Pre-Owned Warranty Quote
Scratch and Dent Quote
Tyre And Rim Quote
News Room
Meet The Team
Careers
Providers
Insurance
Car Insurance
Building Insurance
Household Contents Insurance
Life Insurance
Disability Insurance
Serious Illness Insurance
Domestic Worker Insurance
All Risk Insurance
Funeral Insurance
MotorVAPS Cover
Commercial Insurance
Commercial Vehicle Insurance
Directors and Officers Liability Insurance
Errors and Omissions Liability Insurance
Support
Contact Us
Terms of Service
Privacy Policy
Disclosures
Client Letter
POPI Act
PIA Act
CIM Policy
Complaint Escalation
TCF Form

News Room

2017’s Worst Long-Term Insurance Company Named

Jason Snyman
2018-05-22
The Ombudsman for Long-Term Insurance has revealed which insurer was the worst at responding to complaints last year.
Last week, the Ombudsman for Long-Term Insurance released the Ombud’s 2017 Annual Report. The report named and shamed South Africa’s worst insurance companies when it comes to responding to complaints. Last year, the office handled 10,768 written requests for assistance. 5,435 of these were chargeable complaints – of which only 29% were entirely or even partially resolved in favour of complainants. Every day, nearly 15 South Africans lodge a chargeable complaint with the long-term insurance Ombudsman.  Half of these are related to denied claims. Followed then by complaints of poor service from insurers. For those who don’t know, the Ombudsman provides independent mediation services to insurance policyholders who might have a dispute with their insurer. The service is free to the consumer, but not to the insurers. Insurers have to pay a per-complaint fee. Let’s take a look at some of the other findings in the report, and of course, which long-term insurer came up short.
SAVE up to 30% on car insurance today!

How Does The Ombudsman Reach This Conclusion?

Last year, the Ombudsman recovered R193,3 million on behalf of complainants. Compensation to the tune of R531,429 was awarded to complainants in 150 complaints of poor service. 85% of all complaints were finalised within six months. And, as mentioned above, 29% were resolved wholly or partially in favour of complainants. The Ombudsman gives insurers 21 working days to respond to a complaint once it has been raised within the Ombud. If the Ombudsman receives no response, a reminder is sent to the insurer. The insurer has to respond to this within a week. If the Ombudsman still doesn’t receive a response, the case is deemed incompetent. Insurers may then be charged a double or even triple fee if further reminders need to be sent.
Which companies were rated as the best and worst insurance companies in South Africa? We found out!

The Least Responsive Long-Term Insurance Company

The report revealed that Nedgroup Life – Nedbank’s insurance company – is by far the worst offender when it comes to ignoring complaints. Rounding up the top offenders included:
  • Nestlife Assurance;
  • Safrican Insurance;
  • 1Life Insurance;
  • Alexander Forbes;
  • Worker’s Life Assurance, and;
  • First Rand Life.
All of the above reportedly received a number of reminders to respond to complaints raised with the Ombudsman. Of all companies, though, Old Mutual Life Assurance received the most complaints last year with 847. Some time ago, certain insurers suggested that the Ombud’s office release the names of the insurers who had been issued with repeated second reminders. Those who give the industry a ‘bad name’ are now exposed in the report every year. Nedgroup, for instance, received 24 second reminders to respond. Next on the list was Nestlife Assurance with 19. Deputy Ombudsman, Jennifer Preiss, said:
“When we see a late response trend emerging‚ we meet with the insurer‚ and usually they say it’s a staffing or system problem and that they are making changes.”
Having your company name appear on such a damning list could do you little favours. After all, how can a company deemed incompetent possibly seem like the best choice to insure you and your family? Preiss has said that so far, in 2018, Nedgroup has made significant improvements.
“I don’t think we’ve had to send them a single second reminder this year.” Are you looking for a new insurance company to suit your needs? We can help with comparative insurance quotes here!
CompareGuru Social TwitterCompareGuru Social FacebookCompareGuru Social LinkedIn

Sign up to our Newsletter now, and don’t miss a beat.

Email Address
Name
Sign Up