Momentum won't pay widow R2.4m & Twitter is not impressed

19 November 2018 - 14:27 By Odwa Mjo
Momentum has made headlines after refusing to pay out a R2.4m life policy.
Momentum has made headlines after refusing to pay out a R2.4m life policy.
Image: 123RF

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.

"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.