By Gwurld4026 
Mother’s Lies Cost Daughter Millions in Life Insurance Claim
A South African court has ruled against Viantha Naidoo’s claim to her late mother’s R6 million life insurance policy due to misrepresentation on the application. The insurer, Discovery, discovered that Sandra Naidoo, Viantha’s mother, had inflated her income when applying for the policy.
Sandra claimed a monthly salary of R35,000 as a front-end controller at Shoprite in Chatsworth, while her actual gross income was R5,500, with a take-home pay of R3,600. Discovery argued that with accurate income disclosure, Sandra’s coverage would have been limited to R1.2 million or possibly declined.
Further investigations revealed that Sandra had also applied for a policy with Old Mutual on the same day, stating an income of R70,000. Old Mutual paid out R3.3 million to Viantha upon Sandra’s death. Judge Mahendra Chetty of the Durban High Court dismissed Viantha’s claim, emphasizing the importance of truthful disclosure in insurance applications.
This case underscores the critical need for honesty when applying for life insurance. Misrepresenting information, such as inflating income, can lead to claim denials, leaving beneficiaries without expected financial support. Insurers rely on accurate data to assess risk and determine appropriate coverage levels. Providing false information can result in policy cancellations or denied claims.
To avoid such outcomes, applicants should ensure all information provided is accurate and truthful. This includes details about income, health status, and lifestyle habits. Transparency during the application process helps prevent future complications for beneficiaries.
In summary, the case of Viantha and Sandra Naidoo highlights the potential consequences of dishonesty in life insurance applications. Accurate disclosures are essential to ensure that policies serve their intended purpose of providing financial security to loved ones.