The Office of the Ombudsman for Short-term Insurance saw an upward trend in complaints received from consumers in 2003, with complaints increasing by 34% over the 12-month period.
During 2003 the office received 7Â 292 complaints and general enquiries from consumers. Motor claims continue to dominate complaints at 64% followed by complaints relating to household contents (19%) and house structures (12%).
But while the office has received more complaints than ever before, it has succeeded in finalising complaints more quickly, it says in its annual report for 2003. The average time for finalising a claim usually takes no more than three months. The ombudsman’s office was successful in 22,5% of complaints received, recovering R22-million on behalf of complainants.
Ombudsman for Short-Term Insurance Helm van Zijl says: “The public awareness of the office has grown a great deal. This is due to several contributing factors, one of which is the Policyholder Protection Rules. These rules require that details of our office be contained in every schedule to a policy.
“Before the introduction of these rules, we received approximately eight complaints a day, we now receive an average of 17 complaints a day.”
Last year also saw the ombudsman having to make no rulings against insurance companies. The office continues to have cordial relationship with insurers and more and more of the insurers are adopting the philosophies and principles of the ombudsman, Van Zijl says.
During the period of review the office continued in its drive to provide education and information to consumers and the industry. Included in the annual report is a series of case studies that highlight situations where the insured was in the wrong and where the insurer was in the wrong.
These case studies are available on the ombudsman’s website and are provided to members of the media on a regular basis. The office also launched a quarterly newsletter that provides useful information and tips to consumers and the industry.
Chairperson of the ombudsman’s council Isabel Jones says: “As a consumer champion I have noted that many efforts in various industries to help unhappy consumers have shown short-sighted objectives but the ombudsman’s office has shown empathy, fairness and understanding in handling consumer’s problems — for the past 15 years.
“They are to be congratulated for their efforts and at the same time I also commend the industry for supporting this highly successful consumer initiative.” — I-Net Bridge