Momentum WILL Pay Ganas Family, And Similar Victims of Violent Crime

Insurance company Momentum has listened to the outraged cries on social media in South Africa (you would’ve needed to be deaf to not hear them!), and announced a change to its policy that will allow victims of violent crimes, such as the Ganas family in KwaZulu-Natal, to receive a payout regardless of medical history.

Momentum created a storm on social media after it refused to pay out the life cover claim for the family of Nathan Ganas who was gunned down in March last year during a hijacking attack in Durban.

Ganas, they said, had not disclosed his high blood-sugar levels at the time he signed the contract in 2014, despite “being tested multiple times for blood sugar levels”… making the contract void. “Had we been aware of these elevated blood sugar levels, we would not have offered cover,” argued Momentum on Monday. The company said it would pay back all premiums.

Legally they may have been correct, but their response was met with a resounding cry of: “heartless insurance company”. As outrage gathered ‘momentum’, many policy-holders threatened to leave the company.

This evening Momentum changed its tune, announcing it would pay the Ganas family all that they are due (R2.4-million)… and went a step further, to change the policy for all similar victims.

Momentum said on Twitter:

We’ve listened to your feedback & understand that this tragedy spans far beyond one victim. Therefore, we’d like to offer a solution for life cover claims related to the loss of a loved one due to violent crime. This includes the Ganas family.

In a statement on Facebook, Momentum said:

It is clear from market reaction over the last two days that under certain circumstances, current industry practice creates the impression that insurers are looking for reasons not to pay a claim.

Momentum is in the business of paying claims and we have therefore taken the criticism to heart.

We have created a solution that will pay an amount equal to the death benefit (limited to a maximum of R3 million) in the case of violent crime, regardless of previous medical history.

Momentum said this will apply to all existing as well as future life cover clients. The payout will be funded from Momentum’s profits (not clients’ premiums) and will pay out when “death was a direct result of violent crime, even when material medical non-disclosure impacts the legitimacy of the contract”.

The insurance company said: “The guarantee will apply immediately to all our life cover clients, and will be applied retrospectively. We are identifying clients who were impacted in this way and we will contact their families to arrange payment. This includes Mrs Ganas.”

They emphasised however the “importance of full and honest disclosure at application stage”, and reiterated that it only matters at the time you apply for cover, not if it deteriorates afterwards.

South Africans respond to Momentum’s announcement…

The response to Momentum’s announcement has been overwhelmingly positive, although there are those who’ve accused the company of only doing an about-turn because they “lost almost 88,000 clients”, and of putting Mr Ganas’ widow through so much extra grief before they would pay her. Some said the company should not have buckled to the pressure to “pay out on a fraudulent claim”.

However many have congratulated Momentum…

One of the most popular comments on Momentum’s page comes from Allyssa Mackay who said: “Thank you Momentum and well done South Africans. Can you see what happens when we stand together? Who’s next?”

We've listened to your feedback & understand that this tragedy spans far beyond one victim. Therefore, we'd like to offer a solution for life cover claims related to the loss of a loved one due to violent crime. This includes the Ganas family: https://t.co/NaSTmuFriH #Momentum

— Momentum (@Momentum_za) November 20, 2018