Santam Insurance – Unfair Claims Handling, Excessive Delay & Unreasonable Settlement

I am lodging a formal complaint regarding Santam Insurance’s handling of my third-party motor damage claim, which has been ongoing since May 2025 with no fair resolution to date. My vehicle was bumped while parked at a shopping complex. I was not inside the car and was not at fault. I submitted the claim in May 2025 and was informed by Santam that I needed to submit all documents urgently so that the claim could be finalised within less than a month. Acting on this urgency, I obtained a quotation from a workshop I trust. I was then instructed to submit a second quotation, which I sourced from another workshop approximately 600 metres away, purely due to proximity and limited options at the time. I comp**** fully and promptly. Despite this, the claim was not finalised for over seven (7) months. I followed up continuously from May 2025 through to January 2026. In January, I was advised that the delay was due to a system error on Santam’s side and that the claim would be finalised shortly. Only towards the end of January 2026 was I informed that Santam intended to settle the claim based on the lower quotation, on the basis that I was “given an opportunity” to source quotations of my choice. This position is unreasonable and unfair for the following reasons: I was placed under time pressure to submit documents urgently, yet Santam failed to act with the same urgency. I was not given sufficient time to source quotations from a wider range of my preferred repairers. The claim was delayed for over seven months, through no fault of my own. Santam is now refusing to pay for repairs at my preferred workshop, despite the quotation still being valid. I even proposed that Santam pay the repairer directly, yet this was also refused. This effectively forces me to top up the difference (±R3,000) to repair my vehicle at a workshop I trust — despite the fact that I am a third-party claimant who was not at fault and despite the prolonged delay caused by Santam. From a regulatory and legal perspective, this conduct is concerning: The Policyholder Protection Rules (PPRs) issued under the Short-term Insurance Act require insurers to handle claims fairly, transparently, and without unreasonable delay. The PPRs also require that insurers do not subject claimants to unfairly prejudicial treatment. The Consumer Protection Act (CPA) guarantees the right to fair, reasonable and just treatment, and prohibits conduct that is misleading, deceptive, or unconscionable. The prolonged delay, shifting positions, and refusal to reasonably accommodate my chosen repairer after months of inaction are inconsistent with the principle of Treating Customers Fairly (TCF). It is extremely frustrating to be pressured for “urgent” compliance at the start of the process, only for Santam to delay the claim for over seven months, fail to take accountability for internal system issues, and then insist on settling on terms that prejudice me financially. I find it unreasonable that Santam is unwilling to cover an additional R3,000 — particularly in a third-party claim where I was not at fault — while expecting me to absorb the cost after months of delay and inconvenience, including driving a damaged vehicle throughout this period. I am formally requesting that this matter be urgently escalated, reviewed, and resolved fairly. Failing this, I will have no option but to escalate the matter to the Ombudsman for Short-Term Insurance (OSTI). I trust Santam will reconsider its position and act in line with regulatory requirements and fair treatment principles.