Complaints against insurance companies at record high

2013-05-14 15:38

A record number of complaints against long-term insurance companies were recorded last year, the long-term insurance ombudsman has said.

There were 9 592 complaints in 2012, 4% more than in 2011, Judge Brian Galgut said in a statement today.

“Consumerism (consumers standing up for their rights) has arrived to stay, and with it have come ever more persistent complainants, who do not take no for an answer even when their complaints are without merit, a trend experienced by other ombudsman schemes both in South Africa and internationally.”

His office had recovered a total of R94.3 million for consumers, with 37.4 percent of cases resolved wholly or partially in favour of complainants.

Compensation of R413 428 was paid to consumers for poor service.

Galgut’s term ends on May 31. Judge Ronald McLaren takes over as ombudsman on June 1.

Deputy ombud Jennifer Preiss said a hospital cash plan scam appeared to be operating in KwaZulu-Natal.

People with hospital cash plans appeared to be staying in hospital longer than required. “The longer the stay, the better the pay,” she said.

“Almost all our complaints [about this] come from KwaZulu-Natal.”

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.