Today's Labour News

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newsBusiness Times reports that fraudulent insurance policies are a source of misery for many civil servants in SA and have been for years.  

Back in 2008, Charles Pillai, who was the ombud for financial services providers at the time, said his office had received an influx of complaints against a number of financial services providers relating to fraudulent policies.  The issue is making headlines again, with teachers employed by the state reporting that they've discovered unauthorised deductions from their salaries, some dating back a year.  Apparently, the fraud is often perpetrated by representatives of independent financial advisers, who in turn have contracts with insurers.  The reps are incentivised to find clients to whom the independent agent can sell policies.  The reps allegedly source or buy the personal information of state employees.  All they need is an ID number and the civil servant’s employee number or Persal (Personnel & Salary System) number and they’re able to write the policy.  Basil Manuel of the National Professional Teachers’ Organisation of SA (Naptosa) said illegal deductions from civil servants’ salaries was an ongoing problem:  “I can’t comment on the prevalence, but I reckon it’s rife because people don’t interrogate their pay slips.”  One teacher observed:  “We’re easy targets because we don’t’ get regular pay slips.”  Four teachers interviewed this week said they found that they’ve been paying premiums for a fraudulent group schemes policy, and one was also paying for a fraudulent funeral policy.

  • Read the full original of the report in the above regard by Angelique Ardé at BusinessLive (paywall access only)


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