The high cost of unpaid insurance premiums.
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GUEST - Edite Texeira-McKinon, Lead Ombud for the Non-Life Division of the National Financial Ombud Scheme
In today’s tough economic climate, many South Africans are making difficult financial decisions and for some, that has meant cutting back on their insurance premiums. But what may seem like an easy cost-saving measure now could have devastating consequences later.
Recent insights from the National Financial Ombud Scheme (NFO) reveal a worrying trend: when policyholders miss or cancel their insurance payments, they risk losing crucial cover just when they need it most. Even with a mandatory 15-day grace period in place, insurers are entitled to reject claims if premiums aren’t paid, leaving individuals vulnerable to massive financial losses after accidents, theft, or other unforeseen events.
In today’s tough economic climate, many South Africans are making difficult financial decisions and for some, that has meant cutting back on their insurance premiums. But what may seem like an easy cost-saving measure now could have devastating consequences later.
Recent insights from the National Financial Ombud Scheme (NFO) reveal a worrying trend: when policyholders miss or cancel their insurance payments, they risk losing crucial cover just when they need it most. Even with a mandatory 15-day grace period in place, insurers are entitled to reject claims if premiums aren’t paid, leaving individuals vulnerable to massive financial losses after accidents, theft, or other unforeseen events.