Stolen R95k ring payout sparks unexpected insurance shock

INSURANCE is meant to be a safety net; for some policyholders, that net unravels when it matters most, as the owner of a stolen ring discovered when she received far less to replace the ring than the amount it was insured for.

- ZELDA VENTER

The matter was handled by the Non-life Insurance Division of the National Financial Ombud Scheme (NFO), who said too often people discover after a fire, flood, or theft that the payout they receive is often far less than expected due to the failure to update the value of their home contents.

Edite Teixeira-Mckinnon, Lead Ombud of the Non-life Insurance Division of the NFO, said disputes arise when consumers are dissatisfied with the insurer's settlement offer after making a claim.

“It is important to bear in mind that jewellery appreciates, technology depreciates, and replacement costs shift constantly. Without regular reviews, your cover may leave you dangerously exposed”.