Insurance Repudiations Can be Avoided

July 8 - One of the things that South African consumers fear most about their insurance policies is that when they need to make a claim after an incident, they will not be paid out for one reason or another.

However, CIB Insurance Administrators reassured policyholders and told the that if a policy is correctly structured and updated accordingly, they have nothing to worry about.

The advice and guidance of an insurance broker is very important, especially when dealing with repudiations, as the broker can point out if the consumer is complying with the terms and conditions of the policy or not.

"For the consumer, a professional broker's advice is truly invaluable when the issue of an insurance claim arises," said the Head of the Claims Division at CIB, Michelle Hancock.

She said that it is imperative that consumers remain informed and updated with regards to policy wordings and schedules so that repudiations can be avoided.

"In addition, the insured should also read all the correspondence from their broker or insurer, as the most critical changes will usually be highlighted by the covering letter," said Hancock.

How to Avoid Repudiation

There are a number of things that South Africans can do to make sure that their payout claims are not rejected.

For one, they can ensure that all their premiums are kept paid and up to date, as even missing a single payment could result in an entire claim being denied.

Keeping the insurance group posted about changes in one's personal status or place of residence is crucial, as failure to do so is also grounds for repudiation.

Also, ensuring that a vehicle is fitted with all the necessary security features as spelled out (to the letter!) in insurance policies, is vital for timely payouts.