If you try to claim "too much" from your car insurance, your policy can be cancelled

[Bradley Prior]

If you try to claim "too much" from your car insurance, your policy can be cancelled

If you file too many claims against your car insurance policy your insurer may fire you as a client and note the fact that they cancelled your policy in the national Insurance Data System (IDS).

 

[TPM]

Insurance companies should be forced to put this information on all adverts.

 

[MightyQuin]

If you try to claim "too much" from your car insurance, your policy can be cancelled

If you file too many claims against your car insurance policy your insurer may fire you as a client and note the fact that they cancelled your policy in the national Insurance Data System (IDS).

"If"....."may"....."could"...."should"....."might".....

Pointless "article" is pointless.

 

[Lupus]

Yup it can and most of the time it's Santam and Outsurance who will do it. Though Santam will warn you. I've used brokers for years now and never had an issue.

 

[S.Claus]

OutCrap will shaft you every chance they get exactly why you avoid them like the plague.

 

[system32]

Short term insurance companies share information via South African Insurance Association Club
Long term insurance companies share information via Life Offices' Association (LOA Club)

Insurance companies tell you the data sharing it's to combat fraud and for your own good.... really?

Q1. Is insurance companies sharing information against the competition act?
Q2. Is insurance companies sharing information a violation of the POPI act?

EDIT:
The LOA, together with three other associations, disbanded towards the end of 2008 to form the Association for Savings and Investment South Africa (ASISA).

 

[BadBoyGP]

So.

1. Your cover can be cancelled for many reasons, 1 being you are a multi claimant.

This has been in practice for many years, in fact they notify you in the terms and conditions regarding this. They however would need to give you 30 days notice.

2. The popi and competition act is highly regulated in the short term Industry.
They ask your permission upfront before they even quote you.


So yes, I'd you are claiming 2-3 times a year, for a few years you are deemed a high risk client.

You also need to be honest when you are doing quotes, there is a question they ask " have you been declined or cancelled insurance before?"

 

[Kawak]

If one is causing outsurance to lose money, which basically means, put your premiums into a savings account and insure yourself, all risks are yours to bear anyways.

 

[Mike Hoxbig]

So.

1. Your cover can be cancelled for many reasons, 1 being you are a multi claimant.

This has been in practice for many years, in fact they notify you in the terms and conditions regarding this. They however would need to give you 30 days notice.

2. The popi and competition act is highly regulated in the short term Industry.
They ask your permission upfront before they even quote you.


So yes, I'd you are claiming 2-3 times a year, for a few years you are deemed a high risk client.

You also need to be honest when you are doing quotes, there is a question they ask " have you been declined or cancelled insurance before?"

I haven't claimed in 10 years. Claimed twice last year and got a warning.

It's BS if your claims are legit. Sometimes schit happens. This is the whole point of insurance. So they want your money, except when they need to actually perform their function for existing...

 

[neoprema]

I always thought this was normal operations and included in the wording?

MANY people have tried to commit insurance fraud by claiming over and over again. Also some people seem to think as long as they pay excess the insurance company will magically fund an unlimited number of claims that are costing them. Thats not how insuring risk works.

Like any financial institution offering risk-based payouts they have to ensure they are properly covered. they don't have an unlimited supply of cash to just dish out to their entire client base at whim.

 

[stefan9]

What's the point of insurance if you can't use it when you need it because you might lose your policy...

 

[LazyLion]

But surely this is why they have assessors?
It's the job of the assessors to weed out the frivolous claims.

 

[neoprema]

What's the point of insurance if you can't use it when you need it because you might lose your policy...

You can use it when you need it. But decades of research and stats show that if you need it constantly, and all the time - you're probably up to no good....

 

[Nereus77]

Siri, why do so many people drive around with dents despite having insurance?

 

[Unreal]

You can use it when you need it. But decades of research and stats show that if you need it constantly, and all the time - you're probably up to no good....

Not necessarily up to no good, but just a statistical probability.
If you look at the bell curve, you’ll have average claims in the middle, Extreme claims on the one end and people who never claim on the other hand

 

[ToxicBunny]

But surely this is why they have assessors?
It's the job of the assessors to weed out the frivolous claims.

I had a bad run a little while ago and ended up with my insurer at the time basically refusing to insure a new car I had bought because I was no longer a good client for them as I had had 2 accidents in the course of a year, one my fault and one not.

Just moved to a new insurer so clearly they hadn't listed me on some central database at that point at least.

 

[Hemi300c]

This has been going on and handled like this since I started insurance 37yrs ago.

FFS nothing new and everyone should know you claim too much you get booted.

This is to try keep losses reasonable so everyone else's premiums are not affected.

Only multi claimants will rant.

 

[Foxhound5366]

Moved to Cape Town, had two claims in two years (each time the other driver's fault). In Gauteng, not one claim in ten years ... *touch wood* Luckily those CPT claims have finally been erased, but they were also with Outsurance and I left them when my next premium increase was like 30% higher. They lost out on a lot of claim-free premiums, but I guess they do it to chase away anyone they think is a high risk.

 

[Herr der Verboten]

"If"....."may"....."could"...."should"....."might".....

Pointless "article" is pointless.

Quick¡ section ban this non myconformist¡

 

[BadBoyGP]

I haven't claimed in 10 years. Claimed twice last year and got a warning.

It's BS if your claims are legit. Sometimes schit happens. This is the whole point of insurance. So they want your money, except when they need to actually perform their function for existing...

You need to lodge a formal complaint.

If no luck then the ombudsman for short-term insurance