Insurance Underwiting Managers Nightmare

On the 5th August 2018 I was involved in a car accident in my car in Johannesburg. I filed a Police report for insurance purposes on the 6th August 2018 and submitted it (along with my claim form) to my insurer, Insurance Underwriting Managers (IUM) on the same day. The insurer came back to me with a claim number on the same day and asked to move my vehicle from BMW Sandton Auto to their preferred panelbeater. I wrote back to my insurer stating that I’d be more comfortable with my car remaining at Sandton Auto as I trusted them as an authorized BMW repairer with my vehicle.

On the 7th August 2018, an assessor was appointed to asses my vehicle at Sandton Auto. And a courtesy car was requested by my broker, Black Trade Investments, on my behalf. I received the courtesy car on the 14 August and the insurer took back the car on the 27th August 2018. This was a period shorter than the 30 day period I’m allegable for car hire. Be that is it may, I returned the car and perused the status/progress of my claim.

The insurer sent an email advising that the vehicle has been assessed as a write-off. The insurer proceeded to request for documentation so that they can settle with my bank/financer of the vehicle. I sent them a settlement letter from my bank as requested and the following week I proceeded to take my spare keys and the required change of ownership documents to the insurer’s office in Bedfordview as they requested.

My broker followed up with the insurer on the claim on the 28 August 2018 and that’s when the insurer advised that they sent out an email on the 24 August stating that the claim has been rejected because the insurer would like to void my policy.

The insurer stated that my policy would be voided due to the fact that I did not disclose a previous cellphone theft claim upon applying for the new policy with IUM. I was surprised that the insurer was bringing this up now as I had a previous claim with IUM on my car- and that claim was approved and my vehicle was fixed with no issues.

I fail to understand why they (IUM) didn’t bring up the issue of ‘non disclosure’ with initial claim- which they approved. However it’s very obvious that because this second claim was significantly more expensive, IUM (in true insurance style) would find a way out of paying for the claim.

Had IUM brought up the issue of ‘non disclosure’ with my my first claim (which was much cheaper and less damaging), I would have possibly left them and chosen a new Insurance company and possibly afforded to pay for the damages on my car myself. But after they approved the first claim and fixed my vehicle, the last thing I expected to hear from my insurer (who has approved previous claims) was that my policy with them is actually voided.

Over and above all this, I then discovered after IUM voided my policy, that my vehicle was moved by IUM, even after I was clear on email that they should not move the vehicle. They very rudely told me my car was at Carello in Midrand and that I’d have to make my own plan to see to what happens with it. Just like that they dismissed me and took no responsibility for moving my vehicle without my permission. The car has been there since August accumulating storage fees that I believe IUM should pay for- because they are the ones who moved my car there after I specifically said they should NOT move my car.

I have taken the matter to the Short Term Insurence Ombuds and have been waiting since 5 October 2018. I’ve now been told to wait some more, till end of January- beginning February 2019.

I believe IUM treated me unfairly and have caused me great duress. I hope this platform can assist in warning others and perhaps also with my case.