1 reviews | Active since Sept 2016
Complaint - Replacing phones of lesser value than insured
I am currently insured with Pinnacle 24 Hour, I registered a claim on the date 3rd February 2021 for a lost phone.
I received an email on the 18th February 2021 , advising that my claim has been approved and was provided with banking details to pay the excess. I then requested whether they could confirm which device I’ll be replaced with as all reputable cellphone companies had confirmed that my device was discontinued.
I then received a response from Erika advising that I would be provided with the same device prior to the claim, unless the device is not available where they could give me options but this would only be discussed after my excess has been paid.
I then paid the excess and the same phone was delivered, that I had previously.
No one contacted me to advise what the settlement was and what phone was being replaced. The phone was just delivered.
Firstly, I’m not disputing the fact that the insurance needs to place me back in the same position I was before the loss. I’m not looking to be placed in a better position.
My issue is, when I questioned where this device was sourced from and the cost of it (because the phone has been discontinued last year already at all reputable cell phone companies) my two previous claims was brought up. WHY? What does my previous claims got to do with the current claim? Am I not paying a premium to insure my cellphone in the event something happens?
I questioned whether the device was refurbished, to which the confirmed that its brand new and was purchased from “My Mobile” – I have never heard of this company before.
Also, I have been paying a premium on R 12,000 since 2018. Last month I called to change my bank details and also to review my policy. The consultant who assisted me confirmed that the device value had reduced to R 10,500 . So where did this value come from when the cellphone is discontinued? And how did the value of the device drop to less than R 6,000 within a space of a month?
Considering the premium I have been paying and the value that was insured for – WHICH WAS ADVISED BY THE INSURER, I do not consider this betterment, if they had replaced my phone with similar specs and similar value to what I had insured then I would have understood, but that is not the case.
Their response to my complaint is just open ended and not advised why I have been given a phone that is discontinued, as NO OTHER REPUTABLE MOBILE COMPANY has this phone in stock, and they have not given me options to choose from as they have confirmed on their previous emails.
Their responses also made me feel guilty for claiming, which is unfair as I pay them for this service and insurance is supposed to cover you for unforeseen incidents that occurs which is out of my control, which is exactly what happened on each and every claim I have ever registered.
I trusted these people to insure my property, I paid them for a service which I have not received and their communication to keep me in the loop is severly lacking.
I don’t believe my complaint has been taken seriously. I am unhappy and definitely will be cancelling my policy with them and would never refer anyone to them considering the way my initial complaint was dealt with.
They overcharged me for a phone that they have given me the replacement value for.
They provided me with discontinued phone which is of even less value.
If they insist on their reasoning for their questionable processes then I understand, but I either need the total amount of the value which I insured the phone for, AGAIN, AS ADVISED BY THEM, refunded to me or they need to replace the phone, with the same specs and the same value, which is not discontinued!!
Furthermore, my policy wording is as follows:
“ ALL RISK COVER (Replacement or repair)
ii) Is replaced by your insurer, they agree to replace the MOBILE DEVICE with the same make and model as the insured MOBILE device unless the same make and/or model is no longer available. The insurer will then replace with a MOBILE DEVICE of the same value and similar functions as the original MOBILE DEVICE at the time of loss.”
Considering my Huawei P20 has been discontinued, they clearly did not stick to their own policy wording
To say I am extremely annoyed is a understatement!!!
Thank you for bringing this complaint to our attention,
The complaint was reviewed when originally received in our offices on the 23/02/2021 and feedback was supp**** by the underwriter regarding the replacement.
As the device was still available with the supplier it was provided as a replacement for the claim. This is as per the policy wording which does not use the term discontinued but rather refers to availability. This availability is not limited to retail stores.
Should you feel unfairly treated by the decision of the underwriter to replace you in the same position your where before the claim occurred, you would need to take the complaint up with the short term insurance ombudsman who is there to ensure fair business practice. As the broker we do not have the authority to over turn the decision of the underwriter, who is bound by the terms of the policy.
The value of the device is determined by the suppliers price list. This can differ from the retail prices that are sometimes cheaper due to bulk supplies and selling devices with contracts. The current supplier price is R8500. This price changed in February 2021 and at the time of your call in January the price was R10500.
Please note that the policy wording states:
Increase/Decrease in value The value of the MOBILE DEVICE can increase or decrease from the INSURED VALUE reflected on your schedule. Guardrisk Insurance Company Limited and your broker, Pinnacle Marketing (Pty) Ltd cannot be held accountable in such circumstances for the increase or decrease in value that occurs. Should you wish us to increase or decrease the value of the MOBILE DEVICE. It is your responsibility to notify Pinnacle Marketing (Pty) Ltd of your requirements.
The product is in place to assist you in the event of claims and we are always happy to assist our clients with the replacement of their devices. No one should every feel guilty for using the service and I am sorry to hear that you felt this way after chatting to an underwriting consultant.
Your complaint states that you have not received the service you have paid for and I am very sorry that you feel this way. The policy is in place to replace you in the same position you where before the claim occurred. Should there have been no stock available at the supplier the underwriter would have looked for a device with Similar specs and current value as The P20.
The underwriter has fulfilled the obligations of the policy and no refund is due. We would not like to loose you as a client however we are unable to assist you with your request for a refund or different replacement as we have acted in line with the terms of the policy.
Should you wish to cancel the policy please as you have mentioned in your complaint, please send the cancellation request to *** or call our office on ***.
Kind Regards,
Megan Hope
***
Operations Manager - Pinnacle Marketing.
Thank you for bringing this complaint to our attention,
The complaint was reviewed when originally received in our offices on the 23/02/2021 and feedback was supp**** by the underwriter regarding the replacement.
As the device was still available with the supplier it was provided as a replacement for the claim. This is as per the policy wording which does not use the term discontinued but rather refers to availability. This availability is not limited to retail stores.
Should you feel unfairly treated by the decision of the underwriter to replace you in the same position your where before the claim occurred, you would need to take the complaint up with the short term insurance ombudsman who is there to ensure fair business practice. As the broker we do not have the authority to over turn the decision of the underwriter, who is bound by the terms of the policy.
The value of the device is determined by the suppliers price list. This can differ from the retail prices that are sometimes cheaper due to bulk supplies and selling devices with contracts. The current supplier price is R8500. This price changed in February 2021 and at the time of your call in January the price was R10500.
Please note that the policy wording states:
Increase/Decrease in value The value of the MOBILE DEVICE can increase or decrease from the INSURED VALUE reflected on your schedule. Guardrisk Insurance Company Limited and your broker, Pinnacle Marketing (Pty) Ltd cannot be held accountable in such circumstances for the increase or decrease in value that occurs. Should you wish us to increase or decrease the value of the MOBILE DEVICE. It is your responsibility to notify Pinnacle Marketing (Pty) Ltd of your requirements.
The product is in place to assist you in the event of claims and we are always happy to assist our clients with the replacement of their devices. No one should every feel guilty for using the service and I am sorry to hear that you felt this way after chatting to an underwriting consultant.
Your complaint states that you have not received the service you have paid for and I am very sorry that you feel this way. The policy is in place to replace you in the same position you where before the claim occurred. Should there have been no stock available at the supplier the underwriter would have looked for a device with Similar specs and current value as The P20.
The underwriter has fulfilled the obligations of the policy and no refund is due. We would not like to loose you as a client however we are unable to assist you with your request for a refund or different replacement as we have acted in line with the terms of the policy.
Should you wish to cancel the policy please as you have mentioned in your complaint, please send the cancellation request to *** or call our office on ***.
Kind Regards,
Megan Hope
***
Operations Manager - Pinnacle Marketing.