Momentum won't pay widow R2.4m & Twitter is not impressed
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Insurance company Momentum is not backing down on its decision to not pay out a life cover claim due to the client's failure to disclose his pre-existing medical condition.
Momentum received backlash after refusing to pay out a life insurance claim to the widow of Nathan Ganas, who was shot dead during a hijacking in Durban in March last year.
IOL reported that Ganas's widow was expected to receive a R2.4m life-cover payout from Momentum. However, the company refused to pay, claiming that the deceased did not disclose that he suffered from high blood sugar levels.
In a statement released on Sunday, Momentum said it decided to not pay out the claim because Ganas "did not act in good faith".
Gana's widow is also expected to pay back the R50,000 instant cash benefit that was used for the funeral.
The rejection of the claim was taken to the ombud for long-term insurance, who ruled in Momentum's favour.
1/2: We are very sorry for the tragic death of Mr Ganas. Our principle is to consider all facts at the start of a policy for which we require full disclosure of all material info. Unfortunately the client did not provide this.
— Momentum (@Momentum_za) November 18, 2018
2/2: We carefully considered our decision and the Ombudsman came to the same conclusion that no claim is payable, regardless cause of death. We continue to responsibly provide information, specifically about the importance of full disclosure.
— Momentum (@Momentum_za) November 18, 2018
"In this instance, had the information been known to us, no cover would have been issued in the first place, and no claim would have been paid, regardless of the cause of death", the insurer said.
According to PowerFM, Momentum will refund premiums from the 2014 policy and will allow the Ganas family to keep the R50,000 instant cash benefit.
Momentum received backlash on social media, with some threatening to cancel their policies.
At this point, it matters not how much they try to save face, this will totally ruin #Momentum reputation forever. The tears and horrible living conditions of families of victims of rejected claims have now come full circle. Let them feel it!
— Ntuthuko NM Mazibuko (@NtuthukoNMMazi1) November 19, 2018
Let me start searching for other life insurance... #momentum
— Veli (@GADGVG) November 19, 2018
The Momentum CEO is contradicting himself. He says there was no need to take a client to a barrage of tests yet use the same tests to hold the client to account
— Manqeezus (@_Bonga) November 19, 2018
The reputational damage of this saga will cost #Momentum (in real financial terms), a lot more than the R2m+ payout they would've paid out to the client.
— Mr. Nhlamulo Mabasa 🇿🇦 (@E_xcelsior) November 19, 2018
I unfortunately agree with the moving but where do we move to? I have all kinds of policies with momentum. Which insurer is better. I also want to move, his death had nothing to do with diabetes. This is daylight robbery. Our families are not secured. pic.twitter.com/TEoKBdIboy
— tebogo (@tebogocharity) November 19, 2018
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 https://t.co/EKZWG9vzfx
— Prof Thuli Madonsela (@ThuliMadonsela3) November 18, 2018
This is profoundly disgusting and makes one lose complete faith in insurance companies. First of all, you might be diabetic and not even know it. Secondly, he died from gunshot wounds, not diabetes. I don’t understand how the ombudsman even found in favour of Momentum here. https://t.co/RKS1nuFnwB
— Khaya Dlanga (@khayadlanga) November 18, 2018
What time are we cutting all ties with #momentum ? pic.twitter.com/tgosif3nNK
— Pule Moseamedi (@BrownProducer) November 19, 2018
I wish I had a #Momentum policy to cancel! Go right on my people.... cancel those things and go to a better provider. pic.twitter.com/1pZv43zTHa
— Vukile (@Vuksido) November 19, 2018
Get shot dead and your claim is refuted because of unrelated undisclosed pre-existing conditions. Honestly disgusting @Momentum_za #boycottMomentum https://t.co/wF3HyTjPlI
— Jason Macfie (@Jason_mac08) November 18, 2018
@Momentum_za you might have the law on your side but you have lost the peoples trust! At the end of the day this will end up costing you much more then that single pay out! #MomentumMustFall #BoycottMomentum
— miltonic (@milymilzz) November 19, 2018
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