Naked launches pet insurance from R40 a month

A late-night vet visit is stressful enough without worrying about the bill. Naked’s new pet insurance aims to make the admin a little easier, with app-based claims and automated processing that can pay some customers back within minutes.

Cover starts at R40 a month for cats and R55 for dogs, although those entry-level prices are for accident-only cover. Pet owners who want illness cover or benefits such as routine care will need to choose a more comprehensive plan.

WHAT DOES THE COVER INCLUDE?

Naked offers three levels of cover for cats and dogs:

• Basic: accident-only cover, starting at R40 a month for cats and R55 for dogs.
• Accident and illness: adds cover for illnesses.
• Comprehensive: includes physiotherapy and routine care, such as preventative treatments, vaccinations and check-ups.

Customers can choose an annual cover limit between R15 000 and R120 000, adjust their excess and visit any registered vet in South Africa. The premium depends on factors including the pet’s age, breed and chosen cover. Quotes, policy management and claims are handled through the Naked app.

HOW FAST ARE CLAIMS PAID? 

According to Naked’s early claims data, the median time from submitting a claim to payment was 1.3 days, with 60% paid within 48 hours. Its fastest claim was paid in 12 minutes.

The company also says approximately 29% of claims were paid within an hour of approval. That is a different measure from the full turnaround time: it counts from approval, rather than from when the customer first submits the claim.

One early example involved Max, a dog who swallowed a sock and needed emergency treatment. His owner submitted the invoice at 22:30, and the claim was approved five minutes later. After the customer supplied bank details at 22:48, the money arrived at 22:50. 20 minutes after submission.

“Our AI helps us to approve eligible claims automatically, even outside of office hours,” says Naked co-founder Sumarie Greybe. “Claims that need more information or judgement go to our team of experts for review.”

YOU PAY THE VET FIRST

The claims process works on reimbursement. Customers pay the vet, upload an invoice in the app and answer a few questions. Once the claim is approved, Naked pays back the covered amount, subject to the policy’s limits and excess. A quick payout therefore does not remove the need to settle the vet’s bill upfront.

That bill can add up quickly. Dr Erika Pienaar, a veterinarian at Prime Pet Veterinary Day Clinic in Nelspruit, says a standard consultation at her practice costs R585. A blood smear adds R230, taking the total to R815 before treatment or more complex tests.

Surgery to remove something a dog has swallowed typically costs between R5 800 and R15 000, according to Pienaar. The amount depends on the animal’s size, the complexity of the case and any complications, with specialist treatment potentially costing substantially more.

WHAT “NO TREATMENT-SPECIFIC SUB-LIMITS” MEANS 

Rather than setting separate caps for individual treatments such as blood tests, scans or surgery, Naked applies the customer’s selected annual and per-claim limits. If treatment is covered by the policy, it draws from those limits instead of a separate allowance for that procedure.

That does not mean unlimited cover. The selected plan, excess, exclusions and overall limits still determine what the insurer will pay.

THE CONDITIONS WORTH CHECKING 

Beyond the starting price and payout speed, there are a few important details in Naked’s published cover information:

• Waiting periods: accidents have no waiting period, while illnesses and routine care have a 30-day wait. Breed or genetic conditions have a one-year wait.
• Pre-existing conditions: conditions that showed signs before the policy began, or during a waiting period, are excluded.
• Chronic conditions: Naked says a condition lasting longer than 90 days, or recurring more than three times in a year, is treated as chronic, with ongoing treatment no longer covered.
• Excess: customers pay a percentage of the claim or a minimum amount, whichever is higher.

Naked’s pet insurance brings the same app-based approach it uses for its other insurance products to vet bills.

The technology could make straightforward claims less of an administrative headache, but the R40 starting price is only part of the picture: what matters is whether the chosen plan covers the treatment your pet might need.

Visit https://www.naked.insure/pet-insurance for more.