Old Mutual under fire

COMPLAINTS: SOCIAL MEDIA POST ABOUT NONPAYMENT OPENS FLOODGATES

Insurance giant promises to meet family tomorrow.

Old Mutual has faced a barrage of complaints since Friday after a woman opened up about her struggles with the insurance company for allegedly defying a court order.

The company was in hot water after complaints by a disgruntled client went viral, with a million views on X.

In a series of posts, Sebabatso Molefi told how her mother had allegedly been given the runaround by Old Mutual in paying out her pension. “Dear @OldMutualSA please advise why you are refusing to release my mother’s money even though a court order has been provided.

“You are in contempt of court and I am about to lose my cool right now,” Molefi wrote on X.

This post exploded as more people took to social media and shared their own bad experiences with never receiving payouts from the insurance company.

However, Old Mutual told The Citizen it was “committed to finding a solution, and we would like to apologise for the way we have managed the outcry on social media”.

Its statement read: “Our reluctance to engage and debate on X stems from the complexities of the case and our desire and duty to protect the personal information of the individuals concerned.

“We need to ensure that our compliance with the court order is consistent with our obligation to comply with the pension funds law and tax law. Our intention is to ensure the parties are paid.

“We are investigating ways to solve the problem and will be meeting with the family this week.”

The meeting is set for tomorrow.

Siya Ndlumbini shared his experience, saying: “Old Mutual has been scamming a lot of families.”

Ndlumbini said his brother passed on seven years ago yet Old Mutual has been giving him the runaround since then.

“They have sent me to court, the court sends me back to them and every time it’s a different story.

“I do not like the whole process, as someone who took care of him to the very end, I get triggered when I see his death certificate and autopsy report,” he wrote.

Purple Gully also claimed Old Mutual took her dad’s premiums monthly for years and didn’t pay out when he died in 2021.

“What happened to the 1M he signed up for lala?” he asked.

A former employee @Ceekaylab said he was forced to pay Old Mutual R160 000, and claimed the company mistreated both clients and staff.

“All Old Mutual financial advisors get fined all the commission they made when they leave the company. I am sitting with a bill of R160 000 that I have been paying for the past four years,” he claimed.

Molefi also shared a direct message from a former employee who said the company threatened legal action if she didn’t pay a lapsed policy. “There is a clause in the contract that states if individuals missed a contribution on the policy, the employee who signed up the individual must pay for the missed contribution out their own salary,” the ex-employee claimed.

Grammy Award-winning musician Zakes Bantwini also alleged on X he only received R380 from Old Mutual as payout for his mother’s life cover.

Nyembe Attorneys Incorporated director Atalia Nyembe said clients can refer the matter to the national consumer tribunal or the ombud with jurisdiction

“Most long-term insurers have compliance officers assigned to hear their clients complaints. Consumers are urged to first seek internal relief measures if possible. Their policy documents ought to include these options to them,” Nyembe said.

“Consult your attorney and approach the courts for relief if other remedies have been exhausted.” –