NP
Neville P
1 reviews | Active since Mar 2009
01 May 2019, 20:25
No point taking out policies with them
My dad passed away on 21 March 2019. He had a policy with old mutual of which I am the sole benificiary. I submitted a stack of documents ... as requested. No feedback. Upon following up I was told (1) that it would take 12 to 18 months to pay out and (2) a board of trustees would decide who would get the payout. I find this absolutely pathetic. Clearly there is no point taking out policies with this company if it takes longer to pay out the policy than it will take to finalise the estate and if total strangers have the power to overrule your choice of benificiaries
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Replies (2)
Old Mutual's replyOfficial
02 May 2019, 13:08Hi Neville
Thank you for the review.
The investment in question is a Retirement Annuity and governed by the Pension Funds Act. The Pension Funds Act, amongst others, are one of the Acts that all insurers must adhere to. Section 37C of the Pension Funds Act 24 of 1956 (“the Act”) governs the distribution and payment of lump sum benefits payable on the death of a member of a pension fund, provident fund, pension and provident preservation fund and retirement annuity fund. These benefits are colloquially known as “death benefits”. They do not form part of the assets in a deceased member’s estate. Instead, section 37C places a duty on the trustees of the fund to allocate and pay the benefit in a manner that it deems fair and equitable and only in three exceptional circumstances, may the benefit be paid to the estate. This duty is three-fold and requires that the trustees identify the dependants and nominees of the deceased member, effect an equitable distribution of the benefit amongst the said dependants and nominees, taking into account relevant factors, and to select an appropriate mode of payment for the benefit.
It is for this reason that the trustees of the fund need to gather the information from all "dependants" and nominees and then decide on who should receive the "death benefits".
The Act also stipulates the time a fund may take to gather and finalsie the payment. The length of time taken to finalise depends on how quick we receive the information and also on the detail received as some estates are more complicated than others.
I hope this provides some clarity.
We will resolve the matter with you directly.
Regards
Brent Sellidon
Old Mutual Complaints Management
Thank you for the review.
The investment in question is a Retirement Annuity and governed by the Pension Funds Act. The Pension Funds Act, amongst others, are one of the Acts that all insurers must adhere to. Section 37C of the Pension Funds Act 24 of 1956 (“the Act”) governs the distribution and payment of lump sum benefits payable on the death of a member of a pension fund, provident fund, pension and provident preservation fund and retirement annuity fund. These benefits are colloquially known as “death benefits”. They do not form part of the assets in a deceased member’s estate. Instead, section 37C places a duty on the trustees of the fund to allocate and pay the benefit in a manner that it deems fair and equitable and only in three exceptional circumstances, may the benefit be paid to the estate. This duty is three-fold and requires that the trustees identify the dependants and nominees of the deceased member, effect an equitable distribution of the benefit amongst the said dependants and nominees, taking into account relevant factors, and to select an appropriate mode of payment for the benefit.
It is for this reason that the trustees of the fund need to gather the information from all "dependants" and nominees and then decide on who should receive the "death benefits".
The Act also stipulates the time a fund may take to gather and finalsie the payment. The length of time taken to finalise depends on how quick we receive the information and also on the detail received as some estates are more complicated than others.
I hope this provides some clarity.
We will resolve the matter with you directly.
Regards
Brent Sellidon
Old Mutual Complaints Management
Old Mutual's reply02 May 2019, 13:08
Official
Hi Neville
Thank you for the review.
The investment in question is a Retirement Annuity and governed by the Pension Funds Act. The Pension Funds Act, amongst others, are one of the Acts that all insurers must adhere to. Section 37C of the Pension Funds Act 24 of 1956 (“the Act”) governs the distribution and payment of lump sum benefits payable on the death of a member of a pension fund, provident fund, pension and provident preservation fund and retirement annuity fund. These benefits are colloquially known as “death benefits”. They do not form part of the assets in a deceased member’s estate. Instead, section 37C places a duty on the trustees of the fund to allocate and pay the benefit in a manner that it deems fair and equitable and only in three exceptional circumstances, may the benefit be paid to the estate. This duty is three-fold and requires that the trustees identify the dependants and nominees of the deceased member, effect an equitable distribution of the benefit amongst the said dependants and nominees, taking into account relevant factors, and to select an appropriate mode of payment for the benefit.
It is for this reason that the trustees of the fund need to gather the information from all "dependants" and nominees and then decide on who should receive the "death benefits".
The Act also stipulates the time a fund may take to gather and finalsie the payment. The length of time taken to finalise depends on how quick we receive the information and also on the detail received as some estates are more complicated than others.
I hope this provides some clarity.
We will resolve the matter with you directly.
Regards
Brent Sellidon
Old Mutual Complaints Management
Thank you for the review.
The investment in question is a Retirement Annuity and governed by the Pension Funds Act. The Pension Funds Act, amongst others, are one of the Acts that all insurers must adhere to. Section 37C of the Pension Funds Act 24 of 1956 (“the Act”) governs the distribution and payment of lump sum benefits payable on the death of a member of a pension fund, provident fund, pension and provident preservation fund and retirement annuity fund. These benefits are colloquially known as “death benefits”. They do not form part of the assets in a deceased member’s estate. Instead, section 37C places a duty on the trustees of the fund to allocate and pay the benefit in a manner that it deems fair and equitable and only in three exceptional circumstances, may the benefit be paid to the estate. This duty is three-fold and requires that the trustees identify the dependants and nominees of the deceased member, effect an equitable distribution of the benefit amongst the said dependants and nominees, taking into account relevant factors, and to select an appropriate mode of payment for the benefit.
It is for this reason that the trustees of the fund need to gather the information from all "dependants" and nominees and then decide on who should receive the "death benefits".
The Act also stipulates the time a fund may take to gather and finalsie the payment. The length of time taken to finalise depends on how quick we receive the information and also on the detail received as some estates are more complicated than others.
I hope this provides some clarity.
We will resolve the matter with you directly.
Regards
Brent Sellidon
Old Mutual Complaints Management
NP
Neville P's updateReviewer Update
18 May 2019, 15:59Thank you Old Mutual ... within 12 days of this complaint the policy paid out. Your complaints team and staff members are very efficient
NP
Neville P's update18 May 2019, 15:59
Reviewer Update
Thank you Old Mutual ... within 12 days of this complaint the policy paid out. Your complaints team and staff members are very efficient