Misallocation of Premiums Must Be Investigated

Good morning
When was my Policy canceled and why can't no one answer me with regards to the bond repayment that includes my life Policy.
Why is STANDARD BANK IGNORING my query.

Anthula MadattOn Fri, 14 Nov 2025, 16:28 ZA Insurance Embedded, <***> wrote:Dear Ms. Madatt Thank you for allowing us the opportunity to assist with your complaint about the policy cancellation. Policy number: CHL*** Account number: *** This is a home loan protection plan policy which insured you and Mr. Madatt for death only benefit. We wish to advise that the above-mentioned policy was cancelled on 14 May 2014. The bond was ceded with a Liberty policy. I have escalated your complaint to Liberty to assist further on this matter. You may follow up with Liberty on *** . Kindly note this matter will be closed on my side. |
Kind RegardsMr Langa Mtimkulu
Personal and Private Banking / Insurance Complaints Specialist / Assurance Divisionwww.standardbank.comComplaints Tel: ***For escalations, please contact:Escalation - Team Leader: Itumeleng Ngxumza / ***

--------------- Original Message ---------------
From: ZA Insurance Executive [***]
Sent: 2025/11/13, 13:15
To: ***
Subject: General: Mr Es And Mrs Ajb Madatt CHL******

Good day Langa Kindly acknowledge new matter. --------------- Forwarded Message ---------------
From: Anthula Cross Madatt [***]
Sent: 11/13/2025, 11:37 AM
To: ***; ***; ***; ***; ***; ***; ***; ***; ***; ***; ***; ***; ***
Subject: Formal Complaint – Urgent Investigation Required (Home Loan ***) *** Liberty
Dear Standard BankHOME LOANS
TRANSACTION RECORD
Tel ***
Date: 2025-11-12
MS AJB AND MR. ES MADATT
79 EDITH ST
TRIOMF
2092
Property Description : PTN 2 OF ERF 1789 TRIOMF JOHANNESBURG
Approved Loan Amount : R 724800,00
Bond Term : 30 YEARS
Branch Name : HL:HOME LOANS BRANCH
Branch Code : 4255
Branch Telephone Number : ***
Instalment : R 7866,83 Instalment Due : R 9163,26
Debit Order Amount : R 9163,26 Payment Due Date : 2025-12-01
Total Repayment : R 9163,26 Set Repayment : R 0,00
Total Insurance Premium : R 715,69 Total Assurance Premium : R 523,24
Interest Rate : 11,530 Excess Amount : R 0,00
Current Balance : R 733 250,40-
Fixed/Capped Amount : R 0,00
Fixed/Capped Rate % : 0,00000
Fixed/Capped Date From :
Fixed/Capped To Date :
Instalment Frequency Indicator : M
Total Amount of Collection Cost : R 0,00
Total Amount of legal fees : R 0,00
Pending Legal Costs : R 0,00I am writing this email with deep concern, frustration, and distress regarding my home loan account and the linked life cover policy underwritten by Liberty Life.My husband and I have both been unemployed (my husband since April 2025, and myself for over a year), but we have done everything possible to keep up with our bond repayments. Despite our financial struggles, we have continued to make payments whenever we could. Ironically, our period of unemployment has revealed a serious issue regarding our life cover that we would never have discovered otherwise — I recently found that our policy had lapsed without our knowledge, which has left me extremely worried.Over the past few days, I have spoken to several consultants across different departments — Home Loans, Insurance, Assurance, and Collections — and I have been referred from one department to another without any clear answers. Each consultant confirmed that my bond repayment includes my life cover, insurance, the bond instalment, and service fees. However, when I contacted Liberty Life, they informed me that my life policy lapsed in October 2023 due to “non-payment.”This makes no sense because my bond instalment amount has remained the same since 2023, and your own consultants confirmed that my life cover portion is still included in that monthly payment. This means I have continued paying for life cover that was not active — and at no stage was I informed that the policy had lapsed. I find this deeply concerning and unacceptable.I immediately visited my nearest Standard Bank branch to request call recordings and assistance, but the branch manager was unavailable, and the team leader refused to assist. Only one consultant took the time to listen and help. I explained that I have been paying my bond, which includes the life cover, and yet my policy was never reinstated after the missed instalment in 2023.It is also important to note that Standard Bank representatives have confirmed that life cover is compulsory for all home loan customers. If that is the case, how could my policy have lapsed without any notice or attempt to reinstate it, and why did neither Standard Bank nor Liberty Life notify me? My concerns are serious and require urgent attention:

1. Where have the life cover premiums from my bond payments been going since October 2023?
2. Why was my life policy allowed to lapse despite my bond repayments including the life cover portion?
3. Why was I never informed of the lapse or given an opportunity to rectify it?
4. What steps will be taken to reinstate my policy and correct these errors immediately?

1. Background and Key Concerns

• My life assurance premium (R523.24) was deducted monthly until September 2023.
• After that, the deduction stopped, yet my bond instalment of approximately R10,039.80 did not decrease.
• I was never notified of any lapse or given the opportunity to reinstate my policy.
• I made additional deposits, including R62,000 (11 June 2024) and R19,000 (1 September 2025), ensuring all missed payments were covered.
• Multiple debit order reversals occurred (e.g., Feb 2023, Apr 2023, Dec 2023, Jul 2025), but these were always corrected promptly.
• Based on my calculations, approximately R21,000 – R23,000 remains unaccounted for between Oct 2023 and Nov 2025, likely representing the life assurance portion that was never transferred to Liberty Life.

2. Urgent RequestsI respectfully request the following actions and confirmations in writing:

1. A full month-by-month reconciliation of my bond account from October 2023 to November 2025, including all reversals, service fees, insurance, and assurance allocations.
2. Clarification on where the life assurance payments have been allocated since October 2023.
3. Reinstatement of my life assurance policy, backdated to the date of lapse, and written confirmation that my cover is active.
4. Explanation for why I was never notified of the lapse despite continuous bond repayments.
5. Accountability for the unaccounted ±R21,000–R23,000 and appropriate redress for the financial risk, stress, and inconvenience caused.
6. Furthermore, I would like clarity on where all unallocated funds, particularly the assurance portion, have been app**** since the deductions stopped reflecting in my statements. If these amounts were not transferred to Liberty Life, I request a detailed explanation of how they were accounted for, including any interest that may have accrued on those funds while held by Standard Bank. In addition, please confirm whether all FICA and compliance obligations were correctly maintained during this period, as these unexplained discrepancies raise serious concerns about transparency and proper fund allocation.