Claims how-to
Rejected car insurance claim: your options
By Sipho Dlamini · 7 min read · Updated 24 June 2026
- First step
- Get the rejection and reasons in writing
- Internal route
- Use the insurer's formal dispute process
- Independent body
- Ombudsman for Short Term Insurance (OSTI)
- Cost to complain
- Free to the consumer
If your car insurance claim is rejected, ask the insurer for the decision and reasons in writing, then use their internal dispute process to challenge it. If you are still unhappy, you can lodge a free complaint with the Ombudsman for Short Term Insurance (OSTI), an independent body that resolves disputes between consumers and short term insurers.
A rejection is not always the end. Many disputes are resolved once you understand the reason and respond with the right evidence.
This guide covers why claims get rejected, how to appeal, and how the OSTI process works.
Common reasons claims get rejected
- Non-disclosure: you did not tell the insurer something material when you took out or renewed the policy
- An exclusion in the policy applied (for example wear and tear or an unroadworthy vehicle)
- Driving under the influence or without a valid licence
- Premium not paid, so the policy had lapsed
- The regular driver was different from the one declared
- Late or incomplete notification
Knowing the exact reason is the starting point for any appeal.
Step 1: Get the decision in writing
Ask the insurer to confirm the rejection and the specific reasons in writing, with reference to the policy clause they rely on. You cannot challenge a decision properly until you know exactly why it was refused. Keep all correspondence.
Step 2: Use the internal dispute process
Every short term insurer must have an internal complaints or disputes process. Submit a clear written appeal setting out why you disagree, with supporting evidence: your photos, the SAPS case number, proof of premium payment, or proof you disclosed the relevant facts. Give them the time their process allows to respond.
Step 3: Escalate to OSTI
If the internal process does not resolve it, you can take the matter to the Ombudsman for Short Term Insurance (OSTI). OSTI is independent and free to consumers. It reviews the facts and the policy, and can make a recommendation or ruling. You generally need to have given the insurer a chance to respond first, and to lodge within the ombudsman's time limits.
What OSTI can and cannot do
OSTI handles disputes about short term insurance such as motor, home and household claims. It looks at whether the insurer treated you fairly and applied the policy correctly. It does not set premiums or force an insurer to offer cover. There are monetary limits on what it can rule on, so very large or purely legal disputes may need a court or attorney.
Building a strong appeal
- Stick to facts and the policy wording
- Attach evidence, not just opinion
- Show you disclosed material facts or that the exclusion does not apply
- Keep a clear timeline of events and communication
- Be persistent but professional
A well documented, factual appeal is far more likely to succeed.
Frequently asked questions
Why was my car insurance claim rejected?
Common reasons include non-disclosure, a policy exclusion, driving under the influence or unlicensed, an unpaid premium that lapsed the policy, an undeclared regular driver, or late notification. Ask for the specific reason in writing.
How do I appeal a car insurance claim decision?
Get the rejection in writing with reasons, then submit a written appeal through the insurer's internal dispute process with supporting evidence. If unresolved, escalate to the Ombudsman for Short Term Insurance (OSTI).
What is OSTI?
OSTI is the Ombudsman for Short Term Insurance, an independent body that resolves disputes between consumers and short term insurers in South Africa. It is free to use for consumers.
Does it cost money to complain to the ombudsman?
No. Lodging a complaint with OSTI is free for consumers. You usually need to have given your insurer a chance to resolve it internally first.
Can the ombudsman force my insurer to pay?
OSTI can make rulings or recommendations within its monetary limits if it finds the insurer acted unfairly or applied the policy incorrectly. Very large or purely legal disputes may need a court instead.
How long do I have to complain?
There are time limits, so lodge as soon as the internal process is exhausted. Check the current OSTI deadlines, but do not delay once your insurer has given its final decision.
What is non-disclosure?
Non-disclosure is failing to tell the insurer something material when taking out or renewing cover, such as previous claims, who the main driver is, or modifications. It is a leading reason claims get rejected.
