Old Mutual SA tenders apology to South Africans

Old Mutual SA has tendered an apology to the South Africans.

Old Mutual SA has tendered an apology to the South Africans.

Published Mar 11, 2024


Old Mutual SA has tendered an apology to the South African public for the manner in which they have addressed the public outcry on social media.

The insurer’s Tandisizwe Mahlutshana said the company was committed to finding a solution. However, she explained that their reluctance to engage and debate the matter on X, formerly Twitter, stemmed from the complexities of the case.

It was also because the insurer had the desire and duty to protect the personal information of the individuals concerned, she said.

“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 that the parties are paid.

“We are investigating ways to solve the problem and will be meeting with the family this week. We remain committed to delivering on our obligations while ensuring that we operate within the regulations of the industry and the law,” Mahlutshana said.

Old Mutual South Africa came under fire on social media after Sebabatso Molefi posted a string of posts on X, alleging that Old Mutual was refusing or delaying paying out her mother’s R3 million pension money.

Molefi went on to explain how even though the family had obtained a court order on December 14, 2023, ordering the company to make two payments to a trust account of their attorneys, no such payments had been made to date.

This set off other clients also coming out to voice their hassles in dealing with the insurer, claiming they had been short-changed or sent from pillar to post when claiming on policies.

The hashtag #OldMutualMustFall also sprung up with customers sharing their own personal stories of how the insurer failed to pay upon the death of a loved one, and calling for clients to either cancel their policies or move to other service providers.

“You took my dad’s premium monthly for years and paid 0.00 after he passed away in 2021, what happened to the 1 million he signed up for?” tweeted user @Mizzpurple01.

“When Old Mutual repudiated our claim to bury my grandmother, we thought it was the broker that scammed us. It is obviously its ‘normal’ business practice. In SA it's hard to differentiate between real business and criminals, the lines are too blurred,” shared user Ziphezihle Mngoma.

Despite the assurance given by Old Mutual SA to resolving the matter, other customers have started sharing screenshots of their cancelled policies.

The Star

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