Ever been fired?
It’s never happened to me…ever! But before I start smirking, let me say that I can think of a few employers who were glad to see the back of me.
I remember working for a large insurance company who paid us in the hope of recouping their investment from future commissions. The longer I stayed, the larger the gap between the two grew.
So I got this mail recently…
A lady sends me a mail asking for advice. A large medical aid scheme had just terminated her membership and she was considering legal action.
The question we need to ask is: “Does she have a case?”
The Medical Schemes Act clearly states that no one can be refused membership. Unless the scheme is a restricted scheme (which this one wasn’t), they had to accept her.
As the two of us spoke, it became clear that she had failed to mention a certain health condition when applying. The medical aid scheme had used this to cancel her membership.
Turns out they have every right to do so.
Non-disclosure is an important issue when it comes to any type of insurance.
Always tell the truth when applying for any type of insurance. In fact, tell them more than necessary so that they have no excuse.
What’s the worst thing that could have happened?
A waiting period could have been imposed.
Why did this happen?
The lady in question had never asked a medical broker for advice. She probably thought that:
- She couldn’t be rejected or
- They weren’t allowed to cancel her membership once she had been accepted.
In her case it was a little bit of knowledge which had led to her downfall.
You might not know this, but a broker costs nothing extra.
If you’re paying R1, 000 for your medical aid membership, then that’s what you will pay – with or without a broker!
Have you had a similar experience or know of someone who’s had such an experience? Let’s find out how often this type of thing happens.
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Until next time.
The InsuranceFundi Team