Insurer Momentum has stood its ground amid controversy over an insurance claim.
Hillie Meyer, CEO of MMI, the holding company of Momentum, defended the company’s position in a heated discussion with radio presenter Eusebius McKaiser. Meyer was interviewed on Radio 702 on The Eusebius McKaiser Show on Monday.
Nathan Ganas was gunned down in an attempted hijacking outside his Durban home last year. The Ganas family expected to receive a R2.4m insurance payout from Momentum. However, the insurer refused and rendered Ganas’s contract invalid because the deceased had failed to disclose elevated blood-sugar levels.
The cause of death vs non-disclosure
Miller was questioned on the basis that Ganas’s pre-existing medical condition was not directly linked to the cause of death.
In the interview, Meyer said that the company had to remove emotion when handling the case.
“If we don’t do that [render a contract invalid] we will implicitly encourage non-disclosure. More people might start doing it, especially if there are developing grey lines.”
“I am perfectly happy to take emotion out of it. Because you are gonna lose this argument based on logic, not on heart,” McKaiser replied.
McKaiser further questioned why the medical condition was a determining factor on whether to pay out or not.
“The cause of death was a hail of bullets, who cares about the material non-disclosure? It was unrelated to the death.”
Miller said the deceased took blood tests two weeks before taking out the life cover and he should have been aware of his medical condition.