Rising Complaints: Phoenix Insurance, MUA, MCB & SBM Under OFS Scrutiny

In a recent press conference held on December 5th, Dan Maraye, the Ombudsperson for Financial Services, highlighted a troubling increase in complaints directed at several insurance companies, including Phoenix Insurance, MUA, MCB, and SBM. Maraye lamented the significant challenges faced due to limited personnel and budget compared to larger institutions such as the Bank of Mauritius (BoM) and the Financial Services Commission (FSC).

Maraye revealed that the office has documented recurring grievances across various insurance domains.

Common issues identified included dissatisfaction with life insurance payouts—specifically, policyholders citing insufficient payment amounts at maturity without any accompanying bonuses.

In the realm of automobile insurance, complaints frequently pertain to unsatisfactory repairs, delays in payment, defective spare parts, and the lack of a qualified expert to assess damages.

Additional concerns included unfulfilled claims despite police reports or court judgments, medical expenses following accidents, and issues surrounding excess payment.

Medical insurance claims have also surfaced, with clients expressing frustration over waiting periods, limitations for inpatient and outpatient care, and barriers due to pre-existing conditions.

Travelers have reported difficulties related to medical expenses, canceled flights, missed connections, and flight delays.

Moreover, complaints related to leasing agreements, such as early termination fees and penalties, have emerged, while loan insurance issues revolve around claims for disability or death, as well as pension plan payouts and cancellations.

Customer service has also been a prominent area of concern, with complaints highlighting delays, unfair practices, unexpected price increases, poor communication, and a lack of due diligence.

“This is our fourth annual report from the Ombudsperson for Financial Services.

We have maintained complete transparency, notwithstanding our severely limited resources,” Maraye stated.

Among the statistics presented, Maraye noted that the office received 68 complaints regarding MCB.

However, he emphasized that this number does not necessarily indicate systemic issues within the bank.

To provide a clearer picture, he stressed the importance of understanding the ratio of complaints to the number of customers—resulting in a low complaint ratio of 0.004% for MCB when accounting for its client base.

Maraye explained that customers wishing to file a complaint must first contact the concerned bank or institution.

They are required to wait for 30 days for a response before approaching the Ombudsperson’s office if they remain dissatisfied.

Despite calls for this waiting period to be abolished, no progress has been made. “I will reiterate my request again this year,” Maraye stated.

He also reported issues relating to foreign currency transactions, where clients have faced difficulties obtaining their desired amounts—an issue he clarified falls under the jurisdiction of the Bank of Mauritius.

The Ombudsperson noted that the establishment of his office has absorbed resources from both the Bank of Mauritius and the Financial Services Commission.

Unfortunately, the lack of adequate staffing and funding continues to hinder operations. “Our initial years were incredibly challenging; we struggled to operate effectively. Nevertheless, we remained committed,” he shared.

Maraye concluded with a reminder to institutions of their responsibilities to their clients, emphasizing that their reputation is at stake.

Below are some statistic extracts from OFS Mauritius Annual Report:

Source: Defi Media / OFS Mauritius