I received an email notification that my comprehensive car insurance premium will increase by 90%, that is from R1, 039.56 to R1, 958.86 effective from 15 December 2013. The reasons for such a drastic increase was they, " have taken inflation and increasing replacement costs into consideration and have automatically adjusted my cover amount... and had to apply additional excesses in respect of their motor car section due to the rising cost of claims. The way I see it, this amounts to unfair business practices and abuse of their dominant position in the insurance industry.
No doubt, the cost of living is constantly rising but one needs to pay for services and products consumed (which I proudly do), but shouldn't insurance premiums be based on the individual profile and the fact that vehicles depreciate in value everyday? This is an outrage and a serious concern as I have never claimed from iWyze since I've had an insurance policy with them.By the way, this is a second car insured with iWyze in 3 years, and I've just decide to terminate my policy with them.
I wonder what the South African Consumer Commission will think of this.
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