Complaint Regarding Vodacom Insurance Claim Handling and Settlement Offer

I am writing to formally lodge a complaint regarding both the handling and the proposed settlement of my recent device insurance claim with Vodacom Insurance. I have been insured with Vodacom Insurance since 2021 and have consistently paid my monthly premiums, which were approximately R466 and have recently increased to R491.20. Every year, I receive communication stating that premium increases are necessary to keep up with rising repair and replacement costs, while the policy terms and conditions remain unchanged. Following the theft of my device, I submitted a claim in full compliance with the required process. I was then informed that although my policy bracket allegedly covers devices valued between R10,000 and R15,000, the approved settlement amount is only R11,000. Additionally, I was told that:

To receive a new device, I must pay an additional R5,000 on top of the 15% excess; or I must accept a pre-owned iPhone 13 as a replacement device.

This is unreasonable and inconsistent with the basis on which I have been paying my premiums. My device was not pre-owned when purchased or insured, and I cannot understand why, after years of increasing premiums, I am now limited to a pre-owned replacement. Furthermore, the requirement to pay an extra R5,000 beyond the standard excess raises serious concerns about whether the actual cover aligns with the stated device value bracket. To add to this frustration, the customer service I received was extremely poor:

I spoke with Shumani, who promised to call me back but never did. I then spoke to Neo, who advised that a supervisor would call me—this also never happened. My final call was with Primrose/Promise, who was rude, unprofessional, and unhelpful. I also sent an email to the complaints department, which bounced back without being delivered.

Given all of the above, I request the following:

A detailed written explanation of how the settlement value of R11,000 was determined. Clarification of the specific policy clause that authorizes an additional R5,000 payment beyond the excess for a new replacement device. Confirmation of whether my policy is based on a new-for-old, market value, or refurbished replacement model—and where this is stated in the policy wording. A full reconsideration of my claim in line with fair, transparent, and reasonable treatment of policyholders.

I trust that this matter will be handled urgently and in good faith. Should I not receive a satisfactory resolution, I will have no choice but to escalate this matter to the relevant Ombudsman for further investigation. Regards, Thapelo Mokoena Cellphone number *** Policy Number: VCI*** Claim Number: CLM***