Ombud warns against cancelling insurance amid economic strain

As economic pressures continue to affect households, the National Financial Ombud Scheme has urged South Africans not to cancel their insurance policies or default on premium payments.

The warning comes as more people consider cutting costs, including on non-life or short-term insurance.

Lead Ombud of the Non-life Insurance Division, Edite Teixeira-Mckinon, says keeping insurance cover is crucial, particularly during times of financial difficulty.

“If you really can’t afford your non-life or short-term insurance cover, you are hitting a rough patch, you are going through a rough time, rather contact your broker and insurer and let them know,” says Teixeira-Mckinon.

“There are so many ways in which insurers can work out perhaps a cheaper cover and at least you are covered. Don’t just stop paying your premiums because that can affect your credit record.”

The Ombud is encouraging consumers to explore alternative options with their insurers to avoid losing cover and facing long-term financial consequences.