Poor service levels an issue in the low income life insurance sector, five insurers are responsible for the majority of the incomplete cases, which netted the Ombud R1.55m.
In his annual report into the South African life insurance sector, judge Brian Galgut, Ombudsman for Long-term Insurance, said that there were five life insurers who are responsible for 73% of the 492 finalised cases being categorised as incompetent, meaning that the insurers responded in a tardy or inadaquate manner.
“We maintain that poor service to the Ombudsman is often indicative of poor service to policyholders.” He singled out some insurers servicing the lower income groups, saying that good service and customer care are simply not a priority in this sector.
And according to the ombuds rules, it doesn’t name or shame the good or bad behaviour.
Jennifer Preiss, the deputy ombudsman for long-term insurance, says that all the matters that were incompetent resulted in a double charge to the insurers involved.
Preiss confirmed that the insurers involved in these cases would pay a double charge of R3160 for each of the 492 cases, neting a tidy R1.55m for the ombuds office.