If you've been in a car accident and your claim — whether against your own insurer or the other driver's — has been unfairly rejected, undervalued, or handled badly, you don't have to accept it. South Africa has a free, independent complaints body that holds insurers accountable. Here's everything you need to know about how to use it.

The OSTI No Longer Exists — It's Now the NFO

If you've been searching for the Ombudsman for Short-Term Insurance (OSTI), you need to know that as of 1 March 2024, the OSTI was replaced by the National Financial Ombud Scheme South Africa (NFO). The NFO merged four former ombud schemes — the OSTI, the Ombudsman for Long-Term Insurance (OLTI), the Credit Ombud, and the Ombudsman for Banking Services — into a single, free dispute resolution service.

All short-term insurance complaints — including motor vehicle insurance disputes — are now handled by the NFO's Non-Life division. The process and consumer protections remain the same. The name, contact details, and complaint form have changed.

What the NFO Can and Can't Do

The NFO can investigate, mediate, and make binding rulings on disputes between consumers and their insurers. It covers disputes about claim rejections, settlement amounts, delays, and poor service. Its services are completely free, and if it rules in your favour and you accept the decision, the insurer is legally obligated to comply.

There are limits. The NFO primarily serves policyholders — the insurer's own clients. As an uninsured third-party claimant (someone claiming against another driver's policy rather than your own), your direct access to the NFO is more limited. The NFO cannot compel an insurer to deal fairly with a third party the way it can with a policyholder. In those situations, pursuing the guilty driver personally through the courts may be the more effective route — see our guide on what to do when the other driver's insurer disputes liability.

For non-life short-term insurance disputes the NFO can award up to R5 million, and up to R50,000 in additional compensation for material inconvenience or distress caused by the insurer's conduct.

Step-by-Step: How to Lodge a Complaint With the NFO

Step 1: Try to Resolve the Dispute With the Insurer First

Before approaching the NFO, you must give the insurer a reasonable opportunity to resolve the complaint internally. Contact the insurer in writing, set out your complaint clearly, and ask for a formal response. Keep copies of all correspondence. Most insurers have a complaints or dispute resolution department — log your complaint with them specifically.

Give the insurer at least 30 days to respond formally. If they reject your complaint, provide an inadequate response, or don't respond at all after a reasonable period, you are ready to escalate to the NFO.

Step 2: Gather Your Documentation

Before submitting your NFO complaint, organise the following:

Your policy number and insurer's details
Your claim number and all correspondence with the insurer
The insurer's formal rejection or dispute letter
Your evidence — police report case number, photographs, repair quotes, witness details
A clear written account of what happened and what you are disputing

The stronger your evidence file, the more effectively the NFO can assess your complaint. See our guide on what evidence you need to win a car accident damage claim for a full checklist. If the dispute involves a contested damage assessment, understanding how car damage assessments work will help you articulate where the insurer's assessment fell short.

Step 3: Submit Your Complaint to the NFO

You can submit your complaint to the NFO through the following channels:

Online: www.nfosa.co.za
Phone: 0860 800 900
Email: info@nfosa.co.za
Walk-in / postal: 1 Sturdee Avenue, Rosebank, Johannesburg

Download or complete the complaint form on their website. Summarise the issue clearly: what happened, what the insurer did, and what resolution you are seeking. Upload or attach your supporting documents. Be concise and factual — stick to what is relevant to the dispute.

Step 4: The NFO Investigates

Once your complaint is received, the NFO reviews the information and requests a response from the insurer. Both sides have an opportunity to submit evidence and argument. The NFO does not investigate on behalf of either party — it assesses what both parties submit and makes a finding based on that material.

The average resolution time for complaints has been around 100–140 days. Complex disputes may take longer.

Step 5: The Ruling

The NFO issues a finding. If it finds in your favour, it will specify what the insurer must do — pay the claim, increase the settlement, or correct its conduct. If you accept the ruling, the insurer is legally bound to comply. If you don't accept it, you remain free to pursue the matter through the courts.

If the NFO finds against you, you have lost nothing — the process is free and you can still pursue court action if you believe the finding is wrong.

When to Use the NFO vs Going to Court

The NFO is best used when you are a policyholder disputing your own insurer's decision, or when you have a documented complaint about an insurer's conduct. It is free, relatively fast, and does not require legal representation.

Going to court — either Small Claims Court or Magistrate's Court — is better when you are pursuing the guilty driver personally rather than their insurer, when the NFO route is unavailable to you as a third-party claimant, or when the insurer has made a final decision that the NFO has already reviewed.

Be mindful of your three-year prescription deadline throughout this process. Engaging the NFO does not automatically pause the prescription clock. Read our guide on car damage claim time limits in South Africa to make sure your rights are protected while the NFO process runs.

How MyLawSA Can Help

Navigating insurer disputes — whether through negotiation, the NFO, or the courts — requires understanding how each path works and which one is most effective for your specific situation. At MyLawSA, we help uninsured accident victims recover car damage from guilty parties and their insurers. We work on a No Success, No Fee basis — if we don't recover money for you, you pay nothing.

Is your insurer — or the other driver's insurer — not playing fair?
Contact MyLawSA for a free assessment. We'll tell you honestly whether the NFO, direct negotiation, or court action is your best route.

Useful links:
National Financial Ombud Scheme (NFO): www.nfosa.co.za | 0860 800 900 | info@nfosa.co.za
Financial Sector Conduct Authority (FSCA): www.fsca.co.za

This article is for informational purposes only and does not constitute legal advice. Always consult a qualified professional for advice specific to your situation.