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By Citizen Reporter

Journalist


Malema says ‘please warn Momentum’

The life insurance company has been under fire over its refusal to pay out a life insurance policy for a murdered Durban man.


EFF leader Julius Malema has now joined the fray amid the uproar over life insurer Momentum refusing to pay out the life insurance policy for a man murdered in a Durban hijacking.

Malema simply, and rather ominously, said that someone should “warn” Momentum.

Despite previously sticking to their guns over a rejected life cover insurance payout to a client who had not disclosed a pre-existing condition even though it was not related to his death, Momentum on Monday agreed to not only pay back Nathan Ganas’ premiums to his family, but to also let them keep the R50,000 instant cash benefit they had used to pay for Ganas’ funeral.

However, the insurer will not be paying out his life insurance of R2.4 million due to what they claim to have been a failure on Ganas’ part to declare his high blood sugar.

Ganas was killed in a hail of bullets while trying to protect his wife, Denise, during a hijacking in the driveway of their Shallcross home last March.

Ganas’ family’s claim was declined by the insurer on the grounds Ganas had not disclosed that he was diagnosed with raised blood sugar levels, which may have occurred before he completed his application for the policy in 2014.

Over the weekend, Momentum contended on social media with users expressing their disappointment over the insurer’s rejection to pay the life cover. In a lengthy statement, Momentum said it was sorry for Ganas’ tragic death and had sympathy for the views that the cause of death was not related to the non-disclosure.

But the insurer said that paying the claim would result in an increase in claim payouts, which would ultimately increase the premiums for all other clients just because “a client has not acted in good faith”.

“The rejection of the claim was referred to the Ombudsman for Long Term Insurance, who determined that Momentum’s decision was the correct one under the circumstances. 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,” said Momentum.

The insurer agreed to refund the premiums paid by the Ganas since the inception of his policy in 2014. They will also allow his family to keep the R50,000 instant cash benefit they initially asked them to pay back.

The drama surrounding their refusal to pay the claim has had a major impact on the public perception of the company, with many vowing to move their policies to different service providers.

The EFF are no strangers to taking on corporate brands, having trashed H&M stores earlier this year and also marching against Absa bank.

Momentum released a statement on Monday afternoon clarifying why they’re sticking to their decision not to make the payout.

You can read it in full in the Twitter link below:

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