Unreasonable Refusal of Replacement Device on an approved claim

Complaint: Approved Cellphone Claim -Unreasonable Refusal of Replacement Device

I am writing to formally lodge a complaint regarding my approved cellphone insurance claim, which has yet to be resolved due to what I believe is an unreasonable and unfair refusal to provide a suitable replacement device.

The insured value of my cellphone is R4 599.00. I identified a replacement device priced at R4 499.00, which is within the insured amount. However I was informed that this device cannot be issued because the price is considered a "promotional price". This reasoning is nonsensical and unjustifiable, as the price is a legitimate price available to the public.

As a result, I am now forced to accept a replacement device priced at R3 999.00, which is significantly lower than the insured value. This effectively means that: I, as the insured, am financially disadvantaged, and the insurer benefits from the difference despite the claim being approved. Furthermore, I have already paid an excess fee of R750,00, yet I am still without a phone. This situation is unreasonable and defeats the purpose of having an insurance cover, which is meant to indemnify the insured and not place them at a loss.

I request that this matter be reviewed urgently and that I be allowed to receive a replacement device up to the insured value (R4 599,00), regardless of whether the price is promotional or not, as long as it is a legitimate retail offering.

Should this issue not be resolved promptly, I will have no option but to escalate this matter to OSTI.

I look forward to your urgent response and resolution.