Call for caution as anger against Old Mutual swells

As anger continues to swell on social media over how insurance company, Old Mutual, has been treating its customers, a wealth and investment expert says people need to get advice on which policies to take out.

The remark comes off the back of the recent fallout between a client and Old Mutual.

In a series of posts, Sebabatso Molefi accused the insurance company of defying a court order and refusing to pay her mother’s pension fund worth R3 million.

In response, many other customers also took to social media to share their jaw dropping experiences with the institution.

#OldMutualMustFall is also trending as some South Africans consider their options and threaten to cancel policies with the insurance company.

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

— Seba (@Seba_S_M) March 5, 2024

Speaking to Y, CEO of Inkunzi Wealth Group, Owen Nkomo, however, cautioned the public to read the fine print when seeking to transfer their policies.

He says while the risks may be prevalent with many other insurance companies, the option to shift policies does exist.

 

 

Nkomo says people need to seek professional advice on which policies would be suitable and also which companies to go for.

He says most of these companies sometimes want to pay out as little as they possibly can.

Nkomo says clients can refer the matter to the Insurance Ombudsman if they believe they have been wrongfully denied of their claims.

Following the backlash and the company trending the whole weekend, its market share price dropped.

Old Mutual stock is down 📉📉 pic.twitter.com/OXzmFvJfR1

— Kasi Economy (@KasiEconomy) March 11, 2024

The company allegedly also sent out a internal memo to employees to refrain from commenting on the matter.

The company also took to X, to say they are dealing with the matter.

Update on the Molefi matter. pic.twitter.com/rp73i4t8dd

— Old Mutual SA (@OldMutualSA) March 9, 2024

Many South Africans have been sharing their stories about Old Mutual which they also say they were treated unfairly by the company.

Cancelled Old Mutual in August 2023 after they gave me a run around on a simple household claim. This debate triggers.

This was my first claim after 10 years with them.

After the run around I eventually just accepted their determined claim amount which was 12%.

I was gatvol😡 pic.twitter.com/6scvptJYns

— Bulelani Phillip (@BulelaniPhillip) March 11, 2024

So Old Mutual cancels your cover immediately on short term insurance… They don’t honour the cover till the debit date if you cancel. No refund.

Also you need to cancel with them shortly before the debit date otherwise they charge a R400 admin fee.

Industry first! 🙃

— Conspicuous Leisure (@lungile_mashele) March 11, 2024

Boycott Old Mutual.#BoycottOldMutual pic.twitter.com/M7MDJyMA4k

— Vhahangwele Tsotetsi (@JustJamal_) March 10, 2024

Yey labantu Dinangwe, Only R380 we receive as a payout for my mother’s life cover with Old Mutual #oldmutual https://t.co/AIpOlp6Iyq

— Zakes Bantwini (@ZakesBantwiniSA) March 9, 2024

People are not playing!
People are transferring their policies from Old Mutual to companies that actually treat all South Africans EQUAL!
Let’s keep transferring our policies guys.
Let’s leave Old Mutual in big numbers. pic.twitter.com/rwS1ebVoKq

— Lerato Pillay 🇿🇦💎🇿🇦 (@nyebe_official) March 11, 2024