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LT Ombud Makes Compensation Rulings

The March 2015 edition of the Long-term Ombud’s newsletter, Ombuzz, contains information which should give heart to those who experience unsatisfactory service from product providers. Too often, such service reflects poorly on the intermediary, and not the provider.

“Irrespective of the outcome of a complaint on its merits, our office can award compensation for inconvenience, distress or financial loss caused by an insurer’s mistake or poor service”, says the Ombud.

“In terms of our Rule 3.2.5 we can make a determination to:

“award compensation, irrespective of a determination made in terms of Rule 3.2.2 or 3.2.3, for material inconvenience or distress or for financial loss suffered by a complainant as a result of error, omission or maladministration (including manifestly unacceptable or incompetent service) on the part of the subscribing member; provided that the amount of such compensation shall not exceed the sum of R30 000 or such other sum as the Long-Term Insurance Ombudsman’s Council (“the Council”) may from time to time determine;”

The newsletter then provides two cases to demonstrate the approach by the Ombud when having to decide on compensation issues.

Please click here to read the newsletter.

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