Budget finally settles fire claim

2010-09-11 13:02

Budget Insurance Brokers have ­settled Paseka Marai’s R77 000 ­insurance claim for household items he lost in a house fire.

Marai, whose claim was initially declined by Budget, has confirmed ­that he has received the money.

“The total claim payout was R81 000 but R4 000 was deducted for the excess. I am very happy and ­satisfied with this,” said Marai.

Melody Redman, Budget general manager, Insurance Brokers, said Marai was ­satisfied with the outcome of the matter.

In June, Marai’s house caught fire and was completely burnt down.

“All my house contents, which I had insured with Budget, were ­completely destroyed. Fortunately, none of my family members were ­injured,” said Marai.

Budget allegedly declined to pay out Marai’s claim when he first ­approached the insurer.

The reasons he was given were that the quote was too high and that there were problems with the structure of the building.

“The evaluators declined to pay ­after conducting a forensic investigation. They said Budget would cancel the policy and refund me all my ­premiums. I was surprised ­because my policy was active and the premiums were up to date.”

Marai said the quote estimated that it would cost R100 000 to ­replace the damaged goods.

Redman said their inspectors found that Marai had not obtained municipal approval to build the house.

As a result, Budget had to decline the claim because its policy ­stipulates that it will not pay for damages in such cases.

She said this was because if ­Marai’s house had been built according to the ­approved specifications, the damage might have been minimised.

Redman said Budget also found that the initial quote provided by Marai was based on the values that were much higher than those actual values of the insured goods. However, Budget reviewed its earlier decision and agreed to settle the claim.

Marai said this sudden change of heart was because of ­Hotline’s intervention. “I truly believe that Budget would not have paid my claim if it was not for City Press,” he said.

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