Momentum & the repudiated claim.

Commentary by Anton Muller

Momentum has had a rough patch.
They were 100% right to repudiate the claim (Denise Ganas).

In the event of material non-disclosure - whenever it may be discovered - the life insurance policy is null/void from inception. This is why the premiums were returned in the first instance.

What they have done here is clever though, as by allowing an aspect of unnatural death cover (which is cheaply available as an insurance product with no medical underwriting), they have rescued a situation that was a PR disaster.

The cost to Momentum of this benefit will be minimal, as the circumstances are so unusual, but the goodwill and speed of claims under this benefit will mean the positives of this will massively outweigh the costs.

This benefit has been applied retrospectively to all life cover policyholders.

Well done Momentum.

Hoping SARS doesn't decide to hit them with donations tax

 

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