Momentum has egg on its face

Finally, common sense – and compassion – prevailed at insurance giant Momentum yesterday when it decided to pay a R2.4 million life policy claim to the family of a man gunned down in a hijack attempt. Checking up on the policy held by Nathan Ganas after his death, Momentum originally repudiated the claim because Ganas had allegedly failed to declare he had high blood sugar.

Momentum emphasised the necessity of insurance clients to be absolutely up front and to make full disclosure when taking out policies.

The Citizen agrees this is important in an industry where fraud by policyholders is rife.

But the rigid and callous way the company tried to apply the letter of its legal position left a bad taste in the mouths of many – and the public backlash saw many cancelling their Momentum policies.

In announcing the payout to the Ganas family, the insurance giant said it would implement a “new” policy, whereby it will “pay an amount equal to the death benefit (limited to a maximum of R3 million) in the case of violent crime, regardless of previous medical history. This will apply to all existing as well as future life cover clients.”

That leaves just one question: why did this take Momentum so long?