Momentum to pay murder victim’s widow after outcry

After refusing to pay out a life cover claim to the family of a man who was shot dead in a hijacking, insurer Momentum on Tuesday did an about-turn, saying the family would receive all that was due to it.

The insurance company had initially refused to pay the 2017 claim‚ saying that their client‚ Nathan Ganas‚ had not disclosed his high blood-sugar levels at the time of signing the contract in 2014.

Therefore‚ they said‚ his contract was void.

However on Tuesday, Momentum said it was “providing a solution for the victims of violent crime”. It said it had since reviewed its policies.

There had been widespread social media outrage over the company’s decision not to pay out‚ with many people saying they had cancelled their contracts with the insurer, or would do so.

“It is clear from market reaction over the last two days that under certain circumstances‚ current industry practice creates the impression that insurers are looking for reasons not to pay a claim.

“Momentum is in the business of paying claims. We have taken the criticism to heart.

“We have created a solution that will pay an amount equal to the death benefit (a maximum of R3m) in the case of violent crime‚ regardless of previous medical history.

“This will apply to all existing as well as future life cover clients‚” it said.

From now on‚ Momentum said, it would guarantee a payout when death was a direct result of violent crime‚ even when material medical nondisclosure affected the legitimaneed cy of the contract. “The payout is not in addition to the normal death benefit.

“It only applies in circumstances when the death benefit will not be payable.”

Momentum said it would pay Ganas’s widow and would also identify clients affected by this policy in the past.

But, it said, “the importance of full and honest disclosure at application stage cannot be overemphasised”.

“The only time your health status matters is when you apply for cover. This is when you to share all your medical and health information.

“If your health deteriorates after commencement of the policy‚ there is no need for you to inform Momentum – your claim will be completely valid if the information provided at the start of the policy was accurate‚” the company said.

“With the exception of the new guarantee‚ full disclosure remains non-negotiable to ensure peace of mind.”

Momentum had received a severe backlash from South Africans – including a warning from EFF leader Julius Malema and a tweet from former public protector Thuli Madonsela – after news of the rejected Ganas claim made headlines.

Many of its clients took to social media to state that they would cancel their policies.

Madonsela questioned Momentum’s refusal to pay.

“This answer is perfectly legal. The question is‚ is it just and ethical? @Momentum–za must answer this question for itself in line with its commitment to doing business with integrity #IntegrityMatters‚” her tweet read.

Ganas’s widow‚ Denise‚ had been expecting to receive a R2.4m life-cover payout after her husband was shot dead outside his Durban home in March 2017. –