SN
Shikhar N

1 reviews | Active since Mar 2013

29 Jan 2025, 08:49

Warranty claim rejected

Extremely Disappointed with AA Warranties – Claim Unfairly Rejected!

I've been a loyal AA Warranties customer for years, covering multiple vehicles, and always had trust in their service—until now. My recent claim for the repair of my Kia Sportage's transfer case was rejected, citing "wear and tear" despite clear evidence that it was a mechanical failure as per the specialist's report.

1️⃣ My car has always been serviced on time at Kia, with stamped service records sent to AA Warranties. 2️⃣ The failed part is sealed in a unit, meaning regular servicing wouldn’t prevent this issue. 3️⃣ The repair cost is close to R47,000, and I understand my policy covers up to R30,000—I was fully prepared to pay the difference, but instead, my entire claim was denied! 4️⃣ I’ve been without my car for 12 days already, and now with the dispute process, I have no idea how much longer I’ll be stuck without it. 5️⃣ This is costing me even more money to travel without my car, on top of the R500+ a month I’ve been paying for this policy.

Now, I’m forced into a dispute for something that should clearly be covered. I’ve referred many people to AA Warranties over the years, but now I’m ashamed to do so. What’s the point of paying for a warranty if it won’t honor legitimate claims?

AA Warranties, I expect accountability—do better!

#AAWarranties #RejectedClaim #CustomerDisappointment #WarrantyFailure #KiaSportage #UnfairTreatment

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Replies (5)
AA Warranties
AA Warranties's reply31 Jan 2025, 08:05
Official
Good day Mr Nundkissore ,

We acknowledge receipt of your complaint received at our offices and duly noted your comments and concerns. 

We will investigate further and get back to you within 2 working days. 

Kind regards, 

Complaints Team 
SN
Shikhar N's update05 Feb 2025, 16:57
Reviewer Update
Dear Complaints Team,
I am following up on my dispute regarding the rejected claim for my Kia Sportage transfer case repair, originally submitted on January 31, 2025.
In your initial response, you stated that you would provide feedback within two working days. However, as of today, February 5, 2025, I have not received any update. Additionally, your official letter mentions that I must wait seven working days before escalating, and that deadline is approaching.
I kindly request an urgent update on the status of my dispute, as I have now been without my vehicle for over 16 days, causing significant inconvenience and financial strain. Please provide a response by close of business today or confirm when I can expect a resolution.
If no response is received, I will have no choice but to proceed with escalation as per the instructions in your letter.
Awaiting your immediate feedback.
Sincerely,
AA Warranties
AA Warranties's reply06 Feb 2025, 13:47
Official
Good day Mr Nundkissor, 

Our complaints department has contacted you regarding your complaint. We have communicated with you and provided the necessary information.

If you require further assistance, please do not hesitate to contact us. 

Kind regards 
Complaints Team 
SN
Shikhar N's update06 Feb 2025, 14:20
Reviewer Update
Dear AA Warranties,
Your response is disappointing and misleading. While you have provided an explanation, you have not addressed the core issue—that my claim has been unfairly denied despite my policy covering internal mechanical failures.
To clarify:
1️⃣ My transfer case failure was sudden and unforeseen, meeting the policy’s definition of "Breakdown and/or Failure."
2️⃣ The gearbox specialist confirmed this was a mechanical failure, NOT just wear and tear.
3️⃣ My policy explicitly covers transfer case failures (Page 6-7 of policy wording).
4️⃣ I was prepared to pay the difference between my policy limit (R30,000) and the repair cost (R47,000), yet you denied the claim entirely.
I have not received a fair resolution, and I am still without my vehicle. Before I escalate this matter to the Ombudsman for Short-Term Insurance (OSTI).
I urge you to review your decision again immediately before I proceed with formal escalation.
Awaiting your response.
Sincerely,
Shikhar
AA Warranties
AA Warranties's reply06 Feb 2025, 14:26
Official
 Good day Mr Nundkissore , 

Your concerns are noted. 

 Our complaints department will be in touch with you regarding your complaint.

Kind regards 
 Complaints Team