Insurance consumers need help
Having just been through an eightmonth ordeal waiting for Momentum Life to pay the benefits due to me in terms of my income-protection policy when I had back surgery, my experience could surely add value to the current discussion on whether the financial services sector deserves a single statutory ombud scheme.
At first, Momentum denied my income-protection policy claim. The company was then ordered — by the long-term insurance ombudsman — to settle it, which it has now done. But it took eight months. And Momentum paid me the incorrect amount at first, which was corrected once I raised the matter with the ombudsman.
Fortunately, I know the industry and its products well due to my career experience and the fact that I was an admitted attorney.
In my observation, Momentum Life would rather fight tooth and nail to deny a claim. The same seems to apply on the Momentum short-term insurance side. In this case I had a small claim that was initially denied, but was subsequently paid. The denial was due to a “staff error”. I had to be rather persistent in this case as well.
I would plead on behalf of the average consumer that an easier and better solution should be made available to consumers when their claim expectations are not met.
Questions that need to be considered include: how are insurance companies penalised if they do not treat claims or claimants fairly? And, when the ombudsman orders them to settle the claim, is it just business as usual after that? Who can really wait eight months for an incomereplacement claim dispute to be finalised?
Do consumers who are experiencing difficulties with life insurers, short-term insurers, asset managers, banks and others even know on whose door to knock? The Financial Mail will give away a bottle of whisky each month for the best letter to the editor. The editor will choose the winner and his decision will be final.