How to lodge a complaint regarding Car Insurance with the Short-Term Insurance Ombudsman
There comes a time when customers are unhappy about a particular incident or claim involving a car insurance company. Despite repeated communications with the company, there has been no response. That is when a complaint can be lodged with the short-term insurance ombudsman. The following shows you how to do that.
Buying car insurance is complex, and thus we urge readers not to regard the following as advice but as general information. If you wish to enquire about any car insurance products, please seek professional advice from a certified financial advisor.
YOUR COMPLAINT – WHAT SHOULD YOUR INITIAL APPROACH BE TO AN INSURANCE COMPANY?
It is preferable to communicate with the insurance company in writing concerning your complaint. In this way you are creating a paper trail and it gives the insurance company concerned an opportunity to look into the matter and respond accordingly. If you phone, ask the insurance official for his or her particulars, as well as a reference number. Record salient points made during the discussion. At all times, stay calm and courteous. 1
FURTHER ESCALATION MAY BE NECESSARY
First start communicating with the official you were originally contacting, and, if that fails, escalate the process to reach a senior manager. Request how the company’s complaint procedure should be followed. 1
HOW SHOULD YOU WRITE A LETTER OF COMPLAINT?
When writing out the letter of complaint, be sure to arrange points in a logical sequence, as well as mentioning the chronological order of events. Keep it short and relevant. Indicate at the top of the letter your claim number or policy number. Keep all copies so that you continue to establish a paper trail. 1
UNHAPPY WITH THE INSURER’S RESPONSE? CONTACT THE OMBUDSMAN
If you are dissatisfied with the insurer’s response, you can complete a complaint form that is available on the Ombudsman’s website, and send it back to the Ombudsman. 1
WHO EXACTLY IS THE OMBUDSMAN?
The Ombudsman is officially known as “The Office of the Ombudsman for Short-term Insurance.” The service was created in 1989, to provide an additional way for resolving disputes. The main function of the Ombudsman is to be an impartial mediator between customers and the South African insurance industry.2
OTHER ALTERNATIVES – THE SMALL CLAIMS COURT, AND AN ATTORNEY
The Small Claims Court can issue, on your behalf, a summons on the insurance company, but your claim may not exceed R15 000. If the last option does not apply in your case, you can involve an attorney for further litigation. 1 Remember, you can only issue summons if you decide not to use the OSTI’s services or after the OSTI process has been finalised and you are not satisfied with the result.
THE APPLICATION FORM FROM THE OMBUDSMAN
Complete the application form after printing it. Then either post it to the address displayed on the form, or send as an email attachment to info@osti.co.za. In addition, attach all relevant documentation.2
WHAT PROCESS IS FOLLOWED BY THE OMBUDSMAN?
After receiving your complaint, the Ombudsman will notify you as well as the insurance company concerned. The Ombudsman may require some more information from both parties. After the insurance company has responded to your complaint, you will be required to respond to the insurer’s communication. The Ombudsman may respond by ruling in favour of you or the insurance company.
FOLLOW UP YOUR COMPLAINT
Seeing this is your complaint, you need to follow up on its progress. 2
HOW LONG WILL THE PROCESS TAKE?
Although your complaint is given serious attention by the Ombudsman, it may take 3 to 12 months, all depending on how complicated the issue is.
Disclaimer:
This article was prepared by Eric Sandmann in his personal capacity. The views and opinions expressed in this article are the author’s own and do not reflect the views and opinions of Prime Meridian Direct (Pty) Ltd, FSP41040.The views and opinions in the article should not be attributed to anyone but the author unless expressly stated. Nothing in this article should be relied upon as advice, this publication is presented for informational purposes only. No person should act or refrain from acting in reliance on any information found in this article, without first obtaining proper financial advice from the appropriate professional. The author makes no claims, promises or guarantees about the accuracy, or completeness, of any information linked from, referred to, or contained in this article. The author reserves the right, to edit and change the content of this article.
Sources:
1 http://www.osti.co.za/steps-to-lodge-complaint.html
2 http://carinfo.co.za/how-to-file-a-complaint-with-the-car-insurance-ombudsman/
Also view:
Car Insurance and Decisions by the Ombudsman
