Momentum's parent body denies looking for reason to decline R2.4m claim

The insurance company has come under fire for declining to make a R2.4 million payout to the family of a Durban, saying that he failed to disclose his medical condition.

Picture: Facebook.com

JOHANNESBURG - Momentum's parent body MMI Holdings Limited says granting Nathan Ganas' family an insurance payout would set a precedent for other customers to withhold material information.

The insurance company has come under fire for declining to make R2.4 million payout to his family, saying he failed to disclose his medical condition.

Ganas was gunned down last March outside his Durban home during a hijacking.

Momentum says Ganas knew about his high blood sugar levels before signing with the insurance company in 2014.

MMI CEO Hillie Meyer has denied looking for a reason not make the payment, adding that cases of this nature are rare.

“It’s currently a very, very strong problem in the industry. In fact, something like four out of 1,000 claims are defined as material non-disclosure. That’s a very small number. If we’re not disciplined about the handling of these cases where clients were not truthful about their conditions… firstly, insurance premiums will have to go up.”

LISTEN: Momentum explains why it refused to pay R2.4m claim

(Edited by Shimoney Regter)