FNB Kept My Insurance Cover Active, Accepted Premiums, Then Denied the Cover

FNB continued charging me for insurance cover – now says the cover was an “administrative error”

I am extremely disappointed with the way FNB has handled my Home Loan Protector policy.

My original disability claim took several months to assess. During that period, both my home-loan instalments and insurance premiums continued to be deducted.

When the claim was eventually settled, FNB refunded the relevant home-loan instalments. I specifically asked why the insurance premiums paid during the same period were not also being refunded.

I clearly recall being told by an FNB consultant that insurance premiums are not refunded because the policy remained active and I continued to have insurance cover during that period.

After settlement of the disability claim, FNB did not cancel my policy. Premiums continued to be deducted and subsequent policy documentation continued to reflect Critical Illness Cover of R200,000. Importantly, the disability benefit that had already been settled was removed from the updated documentation, while the Critical Illness Cover remained.

The R200,000 amount is also significant because it corresponds with the minimum-cover provision contained in FNB's policy wording.

I have now submitted a claim under the separate Critical Illness Cover and supp**** the relevant medical documentation.

FNB's position has suddenly changed.

I have now been told that my original benefit was settled at 100%, that there was supposedly no remaining benefit, and that the policy should have been cancelled. FNB says the continued deduction of premiums was an “administrative error” and wants to refund those premiums.

I strongly dispute this.

FNB cannot reasonably tell me that premiums were not refundable because my insurance remained active, continue collecting premiums, issue subsequent policy documentation showing R200,000 Critical Illness Cover, and then, when I make a claim under that cover, retrospectively say that the cover should never have existed.

Had FNB cancelled the policy after my original claim, I would at least have known that I no longer had this insurance and could have considered alternative cover. Instead, I paid premiums and re**** on FNB's own documentation showing that I remained insured.

I have requested the recordings of my original claim because I specifically remember discussing the continued insurance premiums with the consultant. Those recordings should establish what FNB told me at the time.

I am asking FNB to explain publicly:

Why was I charged premiums for insurance that FNB now says did not exist?

Why did my subsequent policy documentation specifically continue to show R200,000 Critical Illness Cover after the disability benefit had been removed?

Why was I previously told that my premiums were not refundable because the policy remained active and cover continued?

And most importantly:

How can FNB retrospectively call paid-for, documented insurance cover an “administrative error” only after a claim is made against that cover?

I have referred this matter for further investigation and expect FNB to honour the cover it represented, documented and charged me for.