SHOULD INSURANCE HAVE PAID OUT?
I bought a car two years ago and I took out insurance for R255 000.
Sadly it was written off in a crash. The insurance company settled the debt with the bank for R191 000.
Was the insurer not supposed to pay the cover amount minus the settlement amount and give me the difference? CONFUSED, EMAIL
You need to read the terms and conditions of your insurance policy to see if the insurance company was supposed to pay 100% of the bank finance or only a certain percentage.
You can also write a letter requesting clarity about why the insurance company didn’t pay the full outstanding amount.
If they don’t respond to you or you aren’t satisfied with their response, you can lodge a complaint with the short-term insurance ombudsman.