SHOULD IN­SUR­ANCE HAVE PAID OUT?

DRUM - - Advice -

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.

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