30/08/2008 16:10 - (SA)
Bank's clients count losses
Nhlanhla Ncaca
TWO Absa clients thought they were adequately covered when they took out home-owners’ insurance covers with the bank. But Zebulon Lelaka and Thabiso Morodi were surprised when they submitted insurance claims.
Absa refused to settle their respective insurance claims citing reasons that did not go down well with the two.
Lelaka of Ekurhuleni believes his claim has been repudiated because he settled his mortgage bond account and therefore is no longer indebted to Absa.
On the other hand, Morodi of Meredale, south of Johannesburg, believes that Absa applied delaying tactics assuming that he would give up the fight.
Absa dismissed the accusations as baseless and offered to review both claims. Lelaka and Morodi decided to contact Hotline when it became clear that they were fighting a losing battle with Absa over their insurance claims.
Lelaka said when he bought a house 20 years ago, he took out two separate insurance policies, life cover and a home-owner’s insurance policy. The monthly premiums for both policies were included in his mortgage bond account.
In March last year, he settled his mortgage bond account and Absa referred him to their attorneys to assist with the cancellation of the mortgage bond account. Lelaka said he explained that he wished to cancel the life cover and retain the home-owner’s insurance policy.
“It did not make any sense to continue with the life insurance policy when the mortgage bond was settled. So, I continued making payments in respect of only one policy and the premium was paid yearly.
“At the time I thought I had taken a wise decision, but I guess I was wrong. I believe I am not to blame for the apparent confusion,” he said.
In December last year, Lelaka received a letter from Absa reminding him about an outstanding insurance premium payment.
He owed Absa R947 and he paid the amount a few days later. In May he received another letter reminding him about an outstanding insurance premium payment of R895.
This time Absa threatened that the insurance policy would lapse because of non-receipt of premiums and Lelaka made the payment.
All this while he thought the payments were in respect of the home-owner’s insurance policy, but it has since turned out that he was wrong.
In July Lelaka reported a faulty geyser to Absa but his application was rejected. Absa claimed that he was only covered on the life policy.
Deon Oosthuizen, Absa media relations officer said Lelaka has a life insurance policy with Absa.
“It appears that he went to the attorneys to continue with his life insurance. If he needs a short-term policy he can contact our offices,” said Oosthuizen.
Lelaka had not decided on his next action.
In Morodi’s case Absa initially agreed to settle his insurance claim, which he submitted in March this year, but reversed its decision four months later.
A geyser burst at his home and the water leakage caused part of the ceiling to collapse.
Morodi said his house was instantly turned into a river and as a result his carpet was damaged.
He explained that almost his entire house was carpeted and Morodi submitted an insurance claim to Absa on the day of the incident.
The following day Absa sent an assessor and within a few days the geyser and ceiling were replaced.
Absa further appointed a company that specialised in carpet fitting to fit the new carpet.
Morodi said the representatives took out measurements and submitted the quote to Absa. But Absa failed to make an advance payment.
“I have been fighting a losing battle with Absa over the final settlement. Six weeks after the incident, I contacted the carpet company and the company claimed that Absa had still not made any payment and Absa is responsible for the delay in replacing the carpets,” he said.
However, Absa denied this assertion and arranged for a second assessment to be done.
Absa failed to brief Morodi on the progress until Morodi contacted them early this month.
Moridi said an Absa consultant claimed that the claim had been repudiated on the basis that the damage to the carpet was as a result of wear and tear.
Morodi argues that it was water damage from the geyser.
Oosthuizen promised to investigate the matter.
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