Unresolved Cancellation and Refund Request – ABSA Vehicle Insurance

Dear HelloPeter,

I am writing to formally lodge a complaint regarding the ABSA vehicle insurance policy that was linked to my vehicle finance agreement.

On the 22nd of February, I purchased a vehicle through an ABSA loan. As dealerships close early on Saturdays, I was advised to take the ABSA vehicle insurance in order to finalize the purchase and collect the car. The ABSA representative who assisted with the loan clearly explained that I could cancel the insurance within 7 days, provided I submit proof of alternative cover.

As all our other vehicles are insured with Santam, I arranged on Monday the 24th of February to have this new vehicle added to our existing policy. I obtained the necessary confirmation of insurance from Santam and submitted it via email to the address provided by ABSA. I received a reply with a case number, stating that my email would be directed to the correct department.

To my shock and disappointment, on the 1st of March, ABSA still proceeded to debit R1,600 for the insurance policy—despite my having secured alternative cover with Santam and submitted the required proof within the stipulated timeframe. Consequently, I had to pay premiums to two different insurers in March.

I attempted to resolve the matter via phone, but I was consistently kept on hold for 50 minutes to over an hour without assistance. I also sent several follow-up emails which have, to this day, gone unanswered.

In April, the same issue occurred: both debit orders went off again. After another lengthy call—this time over 1 hour and 12 minutes—I finally spoke to an ABSA representative. Unfortunately, the experience was unpleasant. The consultant was unprofessional, dismissive, and raised her voice at me. Despite clearly stating my reasons for preferring Santam, I felt pressured to remain with ABSA. It seemed as though I was not being taken seriously—perhaps due to my age (I am 26 years old).

Eventually, I was able to cancel the insurance, but I have still not been refunded for the two months (March and April) during which I was already covered by another provider. My initial cancellation request and proof of alternative cover were submitted within the required timeframe, as per the communication received on the 22nd of February.

It is now May, and I am still battling to get assistance. My calls are either unanswered or I am transferred between departments without resolution.

I am requesting that ABSA urgently review this matter and issue the refund for the duplicate insurance payments for March and April. I am extremely disappointed with the lack of communication, assistance, and professionalism I have experienced throughout this process.

I would appreciate your urgent attention to this matter.