A grieving father has taken King Price Insurance to the ombudsman after the company rejected his funeral cover claim for his deceased son because he did not have an ID document.
Paul Maloka had to borrow R10,000 from his employer to fund his son’s funeral after he learned that Stangen Insurance, which is owned and underwritten by King Price Life Insurance Limited, had refused to pay out for the claim he lodged last month.
“The reason for the rejection is there is no proof of identification provided to us to prove the identity of the life assured, therefore the benefit has been voided,” reads the letter of rejection from Stengen dated March 29.
Maloka’s son, Teboho Matshoha, 21, died on March 15 in a violent incident in Stilfontein, North West. He was born in Lesotho. His mother and father were not married. By the time his mother passed away in 2017 she did not have either a birth certificate or ID for him.
“When I lodged with my insurer they told me they needed Teboho’s ID number before they could process my claim. I told them he didn’t have one and was in SA on his mother’s passport. I also made it clear to them that Teboho doesn’t have an ID or birth certificate. They told me we can use his date of birth and then he was covered. There were no issues until now,” said Maloka from Walkerville, south of Joburg.
He has now approached the office of the long-term insurance Ombudsman, which confirmed that the matter was being investigated.
Maloka took out the cover in 2020 and has been paying R250 in premiums to cover himself, Teboho and two other children. His other two children have birth certificates.
Maloka said he was gutted on finding out that he’d have to pay for his first-born son’s funeral. Out frustration and anger from not knowing how he’d pay for the funeral, Maloka drove to King Price’s head offices in Menlyn in Pretoria where he staged a protest.
“After scanning my driver’s license, the security guard told me that I was not allowed in that building. I then used my car to block their entrance and started shouting and making noise until one of the managers was called. His explanation for the repudiation of my claim still did not make sense. They called the police and they (the police) explained to me that I could be arrested. I then left,” said Maloka.
He said the company said their only option was to refund Maloka only the portion of the premium he paid for his deceased son, which amounted to R940.
We can’t formally identify him as a dependent"
Maloka then approached his employer for a loan, which was initially declined but eventually given after he threatened to resign from the company. “That was my last option because even banks refused to give me a loan. My basic salary is R9,000 and the rest comes from the commission I make from selling cars,” said Maloka.
Cathy Nolan of King Price, said: “Unfortunately, in this case, there is no birth certificate, ID document or passport for the deceased, which means that we can’t formally identify him as Mr Maloka’s dependent. Additionally, the SA Police Service is investigating the circumstances surrounding the death. As the investigation proceeds, we’ll continue to review Mr Maloka’s claim.”
Sowetan Consumer asked Nolan why the company had not demanded the deceased’s birth certificate or ID when his father applied for the funeral cover as this was standard practice. Nolan could only say: “Due to the ongoing police investigation we’re not at liberty to comment any further.”
Hestie Teessen from the Ombud for Financial Services Providers confirmed that Maloka’s matter was being investigted but “unfortunately will not be able to comment as all complaints are confidential”.
Ombuds office assists with insurance disputes
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Aggrieved insurance policy holders can find a reprieve at the office of the ombudsman for long-term insurance if they feel their complaints were not properly handled by their insurers.
The office of the ombudsman for long-term insurance usually deals with complaints related to life insurance. Their services are free of charge and insurers are bound by its rulings.
Complainants are encouraged to contact their insurers to try to resolve the problem before approaching the ombudsman.
If the problem remains unresolved, you may may then submit a complaint to the ombudsman in writing, by phone or by visiting its offices.
You will receive a letter of acknowledgment from the ombudsman and they will ask the insurer to submit a written response to the complaint within six weeks. The complainant will be afforded an opportunity to comment on the insurer’s response.
Once the investigation is completed a legally binding ruling will be issued.
You can reach the ombudsman’s office at 0860-103-236 or email info@ombud.co.za
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