Discovery must withdraw an ad offering maternity benefits on gap cover, described by the Advertising Regulatory Board (ARB) as “misleading” because it did not clarify the 12-month waiting period before the benefits kick in, according to the ruling.
Originally placed on Instagram, it displayed a young couple showing excitement at the results of a pregnancy test alongside a caption that read: “Free for 3 months. Are you thinking of growing your family?”
It urged: “Get gap cover now. Get quote,” with additional wording claiming the gap cover comes with extra maternity cover, reports News24.
A complainant had argued that after applying for Discovery gap cover on 1 January, he and his wife discovered she was pregnant in April. However, he was declined when he attempted to lodge his first maternity cover claim – on the basis that the benefits were excluded for the first 12 months.
According to the ARB ruling, Discovery argued that customers who applied for gap cover via the advert would have had to accept the terms and conditions, which clearly reflected the waiting period.
The waiting period, which was outlined in both the Discovery gap cover web journey and the terms and conditions provided during the application process, is a standard underwriting protocol applicable to most health-related short-term insurance products and was applicable to all clients who applied for the maternity special offer, and not just the complainant.
Discovery also confirmed that the complainant had been furnished with an emailed policy guide outlining the terms and conditions of the policy within 30 days of its activation.
While the ARB accepted that it is not unusual to refer customers to terms and conditions, especially when advertising space is limited, it said these terms cannot be used to correct a misleading first impression created by an advert.
The ARB ruled that the visual of the smiling couple looking at a pregnancy test, which was used in the Discovery gap cover advert, had implied that the product would be useful for families who had just found out about a pregnancy, something that was not the case with the advert in question.
This was further aggravated by Discovery’s claim: “We’ve got you covered with extra maternity cover…”
“The reality is that the couple in the photograph would not be covered until well after this baby is born,” the ARB said in its ruling.
“To present the advertisement as a gap cover specifically to cover extra maternity costs, and then to have a lengthy waiting period of 12 months and not include this limitation in the advertisement, is misleading. The advertiser is instructed to withdraw the advertisement.”
News24 article – Discovery ordered to withdraw 'misleading' gap cover ad (Restricted access)
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