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The Midday Report with Lester Kiewit
12:00 - 13:00
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The Midday Report with Lester Kiewit
12:00 - 13:00

When credit life insurance goes wrong because of a UIF payment

20 May 2020 7:51 PM

Wendy Knowler, consumer Ninja, on the small print and pitfalls of credit life insurance.

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.

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20 May 2020 7:51 PM

More from Good to Know with Wendy Knowler

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The Ombudsman for Short-Term Insurance report - what were the complaints?

27 May 2020 7:58 PM

The Ombud for Short Term Insurance’s aim is to resolve short term insurance complaints ''fairly, efficiently and impartially''.

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The banking report is out - our Consumer Ninja takes a look

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The annual banking ombuds report has been released. Were they good, were they bad; how many complaints have been received?

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Consumer Ninja: Many credit life claims are being rejected

6 May 2020 8:00 PM

It seems many credit life claims are being rejected. Here are nine companies that were named and shamed in a new report.

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When the coronavirus default tsunami hits, how will banks respond?

18 March 2020 8:03 PM

This edition of Consumer Corner looks at how lay-offs, closures and quarantine will impact people's income and ability to repay debt.

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Sudden cancellation of life and illness policies - consumer warrior advice

11 March 2020 8:07 PM

Wendy Knowler, consumer Ninja, has a horror story about insurance policies being cancelled - by sms.

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Telkom directory used to dupe small business owners

4 March 2020 7:54 PM

Hundreds of small businesses which fell prey to a phone directory listings scam, should relax and read here.

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Wait - why did that debit order go off so early?

26 February 2020 8:26 PM

Wendy Knowler, consumer journalist, on Nedbank's early debit orders.

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Read your documents before you sign the deal on your car or house!

19 February 2020 7:46 PM

Wendy Knowler, consumer journalist, on the importance of carefully reading your documents when you buy assets.

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Only Germans take Black Friday more seriously than South Africans

28 November 2019 3:52 PM

In South Africa, Black Friday has become a spend-fest of epic proportions, says consumer journalist Wendy Knowler.

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