Momentum life and health cover insurance policy is facing public scrutiny after their decision to not pay out a R2.4 million claim to a grieving family in Shallcross, south of Durban.
The 42-year-old Nathan Ganas was gunned downed and killed in his driveway during a botched highjacking while trying to protect his wife, last year.
Ganas had taken out a policy with Momentum years before, however, after his death, the family's claim was rejected.
In a statement released by them, they said he had high blood sugar levels, and failed to disclose this when he took out the policy.
Ganas' claim was declined by the insurer on the grounds he had not disclosed that he was diagnosed with raised blood sugar levels which may have occurred before he completed his application for the policy in 2014.
This past weekend, Momentum contended on social media with users expressing their disappointment over the insurer's rejection to pay the life cover. In a lengthy statement, Momentum said it was truly sorry for Ganas' tragic death and also had sympathy for the views that the cause of death was not related to the non-disclosure.
But the insurer said that paying the claim would result in an increase in claims which would ultimately increase the premiums for all other clients just because "a client has not acted in good faith.
Here is the full statement issued by Momentum expressing the importance of giving a full disclosure:
https://www.momentum.co.za/for/you/media/importance-of-full-disclosure
