Divorce complicates insurance claims

Dear Consumer Line, I HAVE recently divorced and moved out of my house.

A few weeks after the divorce I had an accident and my insurance has rejected the claim on the grounds that I did not tell them I was divorced.

Is this fair? Nokuthula Radebe, Mofolo.

Dear Nokuthula, YOU have a duty to inform your insurance company about the changes on all your insured goods and permanent movements from the known address.

Marike van Niekerk, a legal and compliance manager at MUA Insurance Acceptances, said spouses who are going through divorce should check what the insurance implications following a divorce will be.

Van Niekerk said couples face the emotional strain of separation and are also more likely to suffer complicated short-term insurance claim situations or rejections.

She said most short-term insurance claims received shortly after a divorce are incredibly complicated and often become difficult due to emotions being quite intense during this time. Van Niekerk said during the separation phase, before the divorce is finalised, couples tend to neglect insurance cover and this increases the chances of claims being rejected.

At times spouses moving out of the home fail to inform the insurance provider of the new risk address. After a divorce or separation each person should have their own insurance policy drawn up, Van Niekerk said.

Firstly, if there is only one policy, a spouse cannot claim for items taken unlawfully, she said.

“Should one of the spouses come into the home and take jewellery out of the safe that is considered to belong to them, the other spouse cannot claim for stolen jewellery when it is under the same policy, unless criminal charges are laid against that person.”

Another problem with having the policy under one name is that emotion often results in the other spouse not caring about the possessions and resultant insurance endorsements, placing the policyholder at risk of claim rejections, she said.

For example, should the policy stipulate that other people are not allowed to drive the car, out of animosity the spouse may let other people drive the car and should an accident occur the claim could very well be rejected.

Van Niekerk said even if one spouse is still responsible for paying for the policy, there should still be separate policies.

“In fact, it is better if the policyholder takes full responsibility for the payment, even if they are reimbursed through alimony, because an unpaid policy can also result in major problems when it comes to filing an insurance claim.”

Van Niekerk said it was advisable to seek the assistance of an insurance broker who can look after the policy holder’s interests, especially for those who are not well versed in handling their financial affairs.