Our Office received an invitation to participate in a financial health and wellness initiative organized by a notable organization in June 2023. The collaboration between the FAIS Ombud and the organization began when they noticed a concerning trend among their employees regarding insurance policies. Some of the identified issues included employees holding multiple funeral insurance policies. This resulted in reduced take-home pay, leading some to seek financial assistance from micro-lenders.
These issues were mostly caused by some employees signing blank contracts. This led to multiple contracts being opened without their consent and unnecessary insurance policies being taken out, even where there is no insurable interest in the life insured.
To proactively address these issues, the organization initiated financial health and wellness sessions held at various locations in Johannesburg. These sessions aimed to educate employees on various financial matters, including consumer awareness, consumer rights, and responsible financial decision-making.
A complainant who learned about our services at the awareness session was able to approach the Office and lodged a formal complaint. The complainant opened an investment savings plan in February 2021. However, it was not until March 2023, upon receiving his payslip, that the complainant noticed the investment amount had increased from R1500 to R3389.40.
When the complainant attempted to resolve the matter with the insurer, they discovered that, in addition to the investment plan, a life cover and a funeral plan were also added to their profile without their consent. Our office was able to investigate the complaint and assist the complainant to get a refund of all premiums deducted.
If you would like to invite our office to participate in your initiative in raising awareness about our services and how we assist consumers, you can email us at info@faisombud.co.za or contact our office at 012 762 5000 / 086 066 3274.
