discovery is sued for millions
8 October 2007

The summons, issued by Van der Merwe Attorneys on behalf of 300 past and present Discovery Health members, alleges that Discovery conned them into paying fees for extra services that were in fact optional, but made to look compulsory.

The fees amounted to monthly charges of R39 or R468 in annual fees. These were allegedly charged to thousands of its members for ancillary services up until 2005. Wynsam Wealth, the independent financial firm that has accused the medical aid group of the 'con', alleged on its website that Discovery illegally charged its members some R115-million per year.

It added that more than 244 000 were affected by the charges, and has encouraged Discovery members to "sign a 'power of attorney'... to act on your behalf to get your money back".

According to Wynand Venter, the spokesperson of Wynsam Wealth, the lawsuit is worth some R700-million. But Discovery Health has denied this, saying in a statement released on Friday that the claims summons amounts to R475 000, and is "not for hundreds of millions of rands".

The medical aid group said the ancillary fee had been charged prior to 2004 for certain "valuable service offered by Discovery Health". These included Rapid Response benefits, its emergency response service; daily claims payments through electronic fund transfer and access to "convenient self-servicing technologies" available through the group's website, such as emails keeping members updated on claims and benefits.

In 2004, the fee and services were incorporated into the administration agreement between the medical scheme and administrator and were no longer charged separately, it said. Discovery said that it had received the summons, issued by Van der Merwe Attorneys on behalf of the 300 past and present members of its medical scheme.

It denied any wrongdoing, and has "instructed its attorneys to defend the action", the group said. Wynsam Wealth filed the papers in the Johannesburg High Court, the SABC said.

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