Direct Answer
If your short-term insurer rejects a legitimate claim, you have the right to complain to the Ombudsman for Short-Term Insurance (OSTI) — a free service that investigates and can order your insurer to pay. You must first exhaust the insurer's internal complaints process.
What the Law Says
Your Legal Foundation
Short-term Insurance Act 53 of 1998
Various
“Insurers must act in good faith, disclose exclusions clearly, and handle claims fairly. The FSCA regulates short-term insurers and can sanction non-compliant behaviour.”
Financial Sector Regulation Act 9 of 2017
Section 157
“Insurers are required to treat customers fairly (TCF framework). Unfair claim rejections violate the TCF principle.”
Common Questions
Frequently Asked Questions
Can my insurer cancel my policy after a claim?
Not punitively. However, at renewal, insurers may decline to renew or increase premiums. Mid-term cancellation requires valid grounds (e.g., non-disclosure).
What if my insurer undervalues my car for settlement?
Challenge the valuation with market comparables (OLX, AutoTrader listings). OSTI can review disputed settlement amounts.
Is the OSTI ruling binding on my insurer?
OSTI determinations are binding on the insurer if accepted by the consumer. The insurer can only challenge in court if the determination is legally flawed.
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