The Ombudsman for Short-Term Insurance (Osti) has recorded a steady rise in complaints related to power surges and has advised policyholders to re-evaluate their cover as insurers tighten their belts in the face of rolling blackouts.
This is according to data highlighted in a joint 2022 annual report published by Osti and Olti (Ombudsman for Long-Term Insurance) titled Shaping our Tomorrow, released on Tuesday.
Retired judge Margie Victor is the ombud of both entities.
Osti recorded 11 542 complaints across all categories in 2022, 17.8% more than in 2021, 10 411 of which it says were finalised by the end of the period.
Claims falling under the household contents category accounted for 5.9% of the total complaints reported.
Of household content disputes recorded, 20% were related to power surges – in 2018 these only accounted for 3% in the category.
However, these types of disputes have climbed due to the increasing frequency of blackouts.
The leading cause of complaints in this category was the rejection of claims based on an exclusion in the policy, with a total of 166 (41%) rejected on this ground.
Osti says in the report it is time for consumers to educate themselves on what their respective insurers are willing to cover as the availability of load-shedding schedules potentially nullifies some unexpected and unforeseen event claims.
“Most insurers have changed the cover afforded in relation to power surge[s] and how they will view the risk of [a] power surge. As load shedding is scheduled, it may no longer be an unexpected and unforeseen event,” states the report.
“If cover is provided, it may be that some policies will offer the cover as a separate benefit for which a separate premium must be paid,” it notes, adding that the policy document will indicate whether a claim related to a power surge will be covered.
Theft and burglary (40%), accidental damage (16.6%) and acts of nature (8.7%) were among the other complaints registered under the home contents claim dispute category.
For more on this story visit moneyweb.co.za
