Adriaan Kruger
2 minute read
15 Oct 2020
8:17 am

Insurers say no to 243 claims

Adriaan Kruger

The majority were declined due to non-disclosure of material information, while 40 were refused due to suicide within the stipulated period and 31 for underwriting exclusions.

Image: iStock

Figures published by the Association for Savings and Investment SA (Asisa) show that life assurance companies declined to pay 243 claims for death benefits against fully underwritten individual life policies during 2019, with most citing non-disclosure of material information as a reason for their refusal to pay. Other reasons for declining to pay claims included cases of suspected fraud, suicide, and events leading to the death of a policyholder that were specifically excluded under the policy. Rosemary Lightbody, senior policy advisor at Asisa, says declining to pay a claim is a “big deal” for insurance companies. “Obviously, clients want insurers...