Momentum Insurance company has buckled under public pressure agreeing to pay R2.4m to a Durban woman widowed during a violent hijacking.
“We've listened to your feedback and understand that this tragedy spans far beyond one victim,” the company said on Tuesday.
Momentum faced a barrage of criticism on social media after it refused to pay the death benefits to the family of Nathan Ganas, who was killed while trying to protect his wife during a hijacking last March.
The insurer said he had failed to disclose a pre-existing medical condition, in his case, high blood sugar levels.
Legal expert, Suzanne Daniels, said while Momentum was legally correct, it displayed a “lack of moral equity”.
The company said that it would now “offer a solution for life cover claims related to the loss of a loved one due to violent crime” including the Ganas family.
Momentum highlighted the following points in a statement on its website:
- This payout will be fully funded from Momentum’s profits and not from our clients’ premiums;
- The guarantee will pay out when the death was a direct result of violent crime, even when material medical non-disclosure impacts the legitimacy of the contract;
- The payout is not in addition to the normal death benefit. It only applies in circumstances when the death benefit will not be payable or has been reduced;
- Momentum reserves the right to reject any fraudulent claims.
“The guarantee will apply immediately to all our life cover clients and will be applied retrospectively. We are identifying clients who were impacted in this way and we will contact their families to arrange payment. This includes Mrs Ganas”.
However, it said the importance of full and honest disclosure at application stage cannot be overemphasised.
