Momentum to refund premiums after refusing R2.4m payout
Cape Town - Momentum Life has undertaken to refund the widow of a Shallcross man whose insurance policy they refused to pay out after he was killed in a hijacking.
An article by the Independent on Saturday revealed that the insurer had refused to pay out the claim because Nathan Ganas did not disclose that he was diagnosed with raised blood sugar levels which may have occurred before he completed his application for the policy in 2014. This despite Ganas' death being unrelated to blood sugar levels.
According to Denise Ganas, her husband was not on chronic diabetes medication at any time before applying for the policy.
The CEO of Momentum Life, Johann Le Roux, told PowerFM on Monday that the company will refund the premiums paid by the Ganas family since the inception of the policy. The insurer has also backtracked on its demand that Nathan's widow Denise repay the R50 000 cash benefit which the family used to pay for his funeral.
The latest developments come after the company took a pounding on social media over the past 48 hours, with many people expressing disgust at the insurer's stance despite the ombudsman for long-term insurance also finding in Momentum's favour.
A re-insurer appointed by the ombudsman found “from the evidence, I am unconvinced that it can be shown beyond reasonable doubt that the deceased was aware he was diabetic at the time of the application. I am convinced however, that the deceased was aware of raised blood glucose tests”. The re-insurer based its finding on five blood sugar tests over a three-year period prior to Ganas' application