New additions to the local insurance industry are a women-only policy and maintenance protection
Heather Hogan
Women (and men) wary of time-consuming, expensive and sometimes futile battles to get financial support after a divorce can now take out an insurance policy to protect them against the maintenance blues.
However, people in customary marriages are excluded – as are people who had children out of marriage.
Claimed as a first in South Africa, the Divorce Maintenance Insurance (DMI) policy was developed by Diagonal Street Financial Services, a member of the Wescol Group.
According to Wescol’s group managing director Hans Marx, the policy was developed so that customers’ “needs will be taken care of should the maintenance payer fail to pay maintenance for whatever reason”.
The DMI scheme will be available from June 1. The policy offers four options with the value of pay-outs depending on the amount of money invested. The options protect policyholders against:
l Absconders – Should the maintenance payer disappear or move and leave no forwarding address, the policy will pay out up to four months’ maintenance a child.
l Death of the maintenance payer – Policyholders receive two years worth of maintenance if the former husband (or wife) dies. No medical examination is required, so clients can take out insurance against the death of a spouse – even if they are no longer on speaking terms.
l Redundancy of the maintenance payer – Policyholders get 12 months of lost maintenance following the involuntary unemployment of the payer.
l Disability of the maintenance payer – The policy pays out 24 months of lost maintenance if the maintenance payer becomes unable to continue normal employment due to physical disability or death.
The minimum cost for a Divorce Maintenance Insurance policy is R80 a month, with a maximum monthly fee of R180 a child.
However, Liberty Life’s group public relations manager, Heather Ferreira, is one person with some concerns about such a product. She says it could be risky for insurance companies by providing an incentive for maintenance payers to stop payments. Insurance companies could also have trouble avoiding collusion among divorced couples who are seeking a pay-out for their mutual benefit. Diagonal Street Financial Service says it has hired investigators to check for fraudulent claims.
The company is also claiming a South African first with its new motor and household insurance product for women. Launched on April 1 this year, the Femsure policy includes an array of “add-ons” to overall household and motor insurance cover.
Diagonal’s chair, Susan Oosthuizen, says this women-only policy was developed after research conducted by the group proved “that woman lead a very responsible lifestyle and that they take special precaution regarding the protection of their homes”. As a point of interest for those who belittle women’s driving skills – their research also proved that women are involved in fewer motor accidents.
Femsure add-ons include a R10E000 cash benefit payment in the event of a diagnosis of breast cancer, and cover for plastic surgery after breast cancer valued up to another R10 000.
Traumatic events – such as rape, hi- jacking or other physical and mental traumas – result in a pay-out of up to R25E000 for medical expenses. The latter is subject to policy terms and conditions.
Included in add-ons is the dispatch of
emergency medicine which is arranged by Medical Rescue International (MRI), guaranteed hospital admission to the nearest suitable medical facility, medical referrals for policy holders in unfamiliar locations, notification of relatives even after the insured has been safely moved to a medical facility, trauma cover and telephonic counselling.
A further R5E000 is provided yearly for further counselling with therapists and psychologists.
A 24-hour medical rescue is included in Femsure’s add-ons, as is medical evacuation, telephonic medical advice, the Baby World Advice Line, which caters for expectant mothers, and Child Line, for children in distress. Childsafe is another add-on, which ensures children who have been with the insured during an accident or illness of any kind are protected until the child can be handed to a responsible family member.
Pre-existing situations will not be covered by either Divorce Maintenance Insurance or Femsure and cover commences only at the inception of each policy.
Divorce Maintenance Insurance is underwritten by Lloyds of London and Femsure is underwritten by Mutual and Federal, GuardRisk, Renasa Insurance Company and MRI