When credit life insurance goes wrong because of a UIF payment
This is how credit life insurance payments can go wrong.
Two days ago, on Monday, FNB Life put out a statement, saying they expect to approve about a 100-million rand worth of credit life claims by June. They're currently processing between 2000 and 3000 claims a day. And they quoted the national credit act: payable in the event of death, disability, terminal illness, unemployment or other insurable risks...sounds wonderful.Wendy Knowler, consumer journalist
Then I got a case from a woman who put in a claim, she's on sort of temporary indefinite retrenchment - her company is not operating at the moment. She applied - she took out a 150-thousand rand loan last April from FNB. She's been paying it off at 5300-odd a month which includes 480 rand a month for credit life insurance. It's not cheap. It was approved and they say they'd pay out for six months minimum and then let's see how it goes with your job. And then 12 days later they cancelled it - saying it's because she received a UIF payment. She said nowhere in the policy documentation she saw anything about a UIF payment which incidentally she did not apply for, her employer did. It was a third of her normal salary. I took this to FNB and they said it's not UIF it's 'temporary employer relief scheme' - but it's essentially from the government, paid to the employer and then paid to the employee - so it's not a salary...Wendy Knowler, consumer journalist
Listen to the full story of the non-payment, and the outcome, below.
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning.
Impersonation fraud has increased by a massive 337%. Consumers have been warned to protect their personal information.Read More
Lay-by allows you to choose an item and then pay it off every month, interest-free, explains consumer journalist Wendy Knowler.Read More
A financial expert has warned locals not to fall for a pyramid scheme known as Divine Prosperity Blossom that has sprung up in Cape Town.Read More
Heather John says she was not paid for a guest booking at her holiday apartment but MD apologises and she has now been paid.Read More
Covid-19 restrictions around the world have led to the huge popularity of online supermarket shopping, but there's a catch.Read More
ConsumerTalk consumer journalist Wendy Knowler says the 'basket of goods' comparison has a number of flaws.Read More
If your phone gets stolen, call your bank right away. Your accounts can be raided.Read More
A Cape Town woman has been left with serious lung damage after her ozone therapy session went wrong. A medical doctor weighs in.Read More
Unwanted charges on your cell bill? Struggling to unsubscribe from rogue content services that you never signed up for? Here's what you can do.Read More
Hand sanitiser has become a highly sought-after product amid the coronavirus pandemic. But are all of them effective? Wendy Knowler investigates.Read More