1 reviews | Active since Oct 2015
Drastic 20% increase in permium within 3 months of joining Discovery Insure
I joined Discovery in Dec21 and 3 months later I was informed that my premium is being increased by 20% above and beyond yearly increases. The letter indicated vague reason of increased cars claims nationally and increased damage due to loadshedding. All these factors where already present 3 months earlier so could not be a reason for a whopping 20% increase within 3 months. Also speaking with brokers they indicated that this was not across all clients but people they consider high volume claimers. Enquiring further it became clear the reason for my increase was as a result of accidental damage to my car door resulting in a claim of R5k to fix and thereby identifying me as a high risk. I do understand that my claim was within the 1st few months, but something unforeseen happened outside my control, which is the whole reason for insurance, and without really taking my history into account (as requested by them and I happily supp****), Discovery is summarily ignored their agreement and justifying the increase by stating I'm a higher risk client.
After speaking to a Thabiso Mahlangu I submitted 9 year’s worth of building and car insurance from other insurances indicating out of pocket only 1 claim on car (rim damage) and 2 claims for house damage (burst geyser and broken stove). Over.. 9 .. Years..
After repeated chasing I was informed that the increase stands due to my claim on my car door negatively impacting my risk assessment. No mention of my claim history which they requested, which I can only assume was due to the history not supporting this high percentage increase.
I would advise someone looking at Discovery Insure to be extremely careful of a quote that was beating other insurances and hope and pray nothing accidentally happens which you thought you were covered for. As Discovery has no problem pushing up their premiums due to a claim you submit in good faith, but which is then used to support drastic permanent increases in your premiums.
Discovery then appointed 2 or 3 people to come assess the damage all of which refused. I was then told to get my own damage assessment which I didn't know where to get and the claim was closed by Discovery.
NO money was paid out. NO assessor was sent out. This did not cost Discovery ANY funds at all.
This "claim" is not a claim. Please check your records and claims before making this assertion as everything in your reply connects claims to costs pay-outs.
So essentially your loss ratio of 79% is incorrect if it is based on 2 claims as there has been only 1 claim for accidental damage on my car door which you now indicate justifies a 20% increase in premium.
In addition I was requested to send you my insurance history which I did but was completely disregarded because I can only assume it did not fit into the risk profile you decided on in my portfolio.
Also your statement,
"We therefore affirm that the increase is in line with the given current economic environment (vehicle and part shortages and abnormal power surge and weather events) as we are experiencing unprecedented increases in claims costs. "
does not support a premium increase as these factors were already in place at the time my coverage started and also a global statement like that would indicate an increase to all your clients which is not the case here.
I have lodged a complaint with OSTI for impartial mediation as it is very clear that Discovery is more interested in justifying my premium increase than to genuinely look at the facts of the claims in question and/or my insurance history.
Discovery then appointed 2 or 3 people to come assess the damage all of which refused. I was then told to get my own damage assessment which I didn't know where to get and the claim was closed by Discovery.
NO money was paid out. NO assessor was sent out. This did not cost Discovery ANY funds at all.
This "claim" is not a claim. Please check your records and claims before making this assertion as everything in your reply connects claims to costs pay-outs.
So essentially your loss ratio of 79% is incorrect if it is based on 2 claims as there has been only 1 claim for accidental damage on my car door which you now indicate justifies a 20% increase in premium.
In addition I was requested to send you my insurance history which I did but was completely disregarded because I can only assume it did not fit into the risk profile you decided on in my portfolio.
Also your statement,
"We therefore affirm that the increase is in line with the given current economic environment (vehicle and part shortages and abnormal power surge and weather events) as we are experiencing unprecedented increases in claims costs. "
does not support a premium increase as these factors were already in place at the time my coverage started and also a global statement like that would indicate an increase to all your clients which is not the case here.
I have lodged a complaint with OSTI for impartial mediation as it is very clear that Discovery is more interested in justifying my premium increase than to genuinely look at the facts of the claims in question and/or my insurance history.