Ridiculous payout

Dear Old Mutual Customer Service,

I am writing to formally lodge a complaint regarding the handling of my recent insurance claim following a fire at my home.

I submitted a claim for substantial damages and losses, including personal belongings and my mobile phone, which were destroyed in the incident. After waiting two months for the claim to be finalized, I was extremely disappointed to receive a payout that did not even cover 50% of the losses I suffered.

I was then told that I was under-insured. However, at no point during the policy setup was I made aware of this risk. I would like to understand whose responsibility it is to ensure clients are correctly advised on the appropriate level of cover. If the person who sold me the policy did not clearly explain the terms or the implications of being under-insured, then this is a failure on Old Mutual’s part.

This raises serious questions about whether your sales agents are properly trained and accredited to sell insurance. Is the goal to provide genuine cover for clients in times of need, or to avoid payouts through technicalities?

I am both angry and disappointed with how this claim was handled — from the delays in finalizing it, to the inadequate payout, and the lack of accountability around being under-insured. It feels like the delays were merely a tactic to make excuses and avoid fulfilling your obligation to your client.

I request a full and transparent review of my claim, including:

A detailed breakdown of how the payout was calculated;

Clarification on how the under-insurance occurred;

The name and accreditation details of the agent who sold me the policy;

What steps Old Mutual will take to address this failure in client communication.

I expect a response within 7 working days. Should I not receive a satisfactory resolution, I will escalate the matter to the Ombudsman for Short-Term Insurance.

Yours sincerely,