My Hyundai Santa Fe suffered a turbo seal failure which caused a huge amount of engine damage. The total cost including the recovery was approx R95, 000. I am told the the only payout would be R5000 towards the turbo (actual cost R18, 600). I was led to believe that only one category of payout would be made ie. either turbo or engine, the maximum payout for the engine being R18, 000.
It seems that the only thing covered is the first part that failed and even that the part in question is not adequately covered by the policy.
The conclusion being that it would not be worth buying this policy for any vehicle other than low cost vehicles with cheap replacement parts.
Absa endorses these policies and I will be also be confronting them as to these conditions are not explained in the policy in a way for the average person to be able to understand.
I will also make enquiries as to whether the Absa vehicle finance reps receive any commission from the sales of these policies which may constitute a clear conflict of interest to the client.
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