Momentum confirms it will reimburse family's premiums, but not pay out policy | Fin24
 
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Momentum confirms it will reimburse family's premiums, but not pay out policy

Nov 19 2018 18:27
Sibongile Khumalo, Fin24

Financial services and insurance group Momentum has confirmed it will reimburse the life insurance premium of a Durban man whose policy payout it rejected on the basis that he failed to disclose an existing health condition.

The family of Nathan Ganas had been at loggerheads with the giant insurer over the payout, after it was discovered that he had high blood sugar levels although he was not killed by the ailment.

Ganas died from gunshot wounds during a hijacking outside his home in Durban in March last year.

Media had initially reported that the company had demanded that the Ganas family return the R50 000 it paid out for his funeral expenses, as it was not going to pay out the full policy amount of R2.4m.

"Our agreement is that she can keep the R50 000 funeral benefit and we are going to reimburse all her premiums," said  Momentum spokesperson Mandy Laemmle.

The policy payout will still not be made.

Earlier on Monday, the company said in a statement failure to conduct proper checks would "indirectly encourage the practice of non-disclosure".

"Our position on this matter is the following, once we have evidence that a client has not acted in good faith, we rectify the matter in an objective manner, and in the interest of fairness to all our clients," the company said in a statement.

Momentum's decision has drawn massive public outrage.

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momentum  |  insurance industry
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