As the fourth wave of Covid-19 hits, insurance brokerage Multisure is worried about the turnaround of potential funeral claims from its clients as a dispute between it and its former underwriter, Stellenbosch-based KGA Life, is causing a delay in the payment of current claims.
According to Multisure, it ended up footing the bill for claims it received between September and mid-October because its underwriter was allegedly delaying payments. As an insurance brokerage, it is not Multisure's liability to pay funeral claims. Its underwriter - which has to be a registered life insurance company - should.
Multisure alleges that when it wanted to switch to a new insurer to underwrite its funeral policies, the payment of claims hit a snag. Even though it gave KGA Life notice in July that it wanted to move to a bigger insurer, African Unity Life, Multisure CEO Denton Goodford said the insurer wouldn't sign on the dotted line. Thus, it continues to collect premiums of Multisure clients.