How 1Life agent ripped off pensioners

Davids, 72, is one of 18 elderly South African Social Security Agency (SASSA) beneficiaries who signed onto the policies after they were allegedly told by the agent that the life cover had been vetted by SASSA. Most of the victims are former farmworkers from Franschhoek.

This was despite most of them already having life cover at the time.

Money was deducted for a period of four months from the beneficiaries’ accounts.

However, following numerous requests and the intervention of Black Sash, 1Life have since stopped the deductions and promised to refund all of the beneficiaries by 14 April.

Davids, who at the time already had a policy with Metropolitan, said the agent had convinced her that the additional policy was a new requirement for the state welfare agency.

“A lady came to my house in October last year. She told me she was sent by SASSA to take out the policies. When I told her that I already had life cover, she told me SASSA is requesting that another policy be taken to make sure everyone is covered.

“The lady just started writing on the documents. She told me to give my hand and just took my fingerprints. When I asked why she was doing this, she just said that was how they did it,” Davids said. She lives in a small house on La Dauphine farm in Franschhoek with her two adult children and grandchild.

Davids said she was told to make cash payments at the nearest post office every month.

“The day I went to withdraw my SASSA money, I was so shocked when I saw the money was already taken from my account. Until we cancelled the policy in February, R100 was deducted every month. The last month they deducted R90. Black Sash then got involved and arranged with them to cancel the policies. Since then we still haven’t got our money back,” she said.

Davids receives a R1,350 old age grant which helps her buy food, pay her phone bill and electricity.

“The children see to themselves, but it’s hard. I need all the money I get because things are expensive now. After working here my whole life, the farmer gave me this little house to live in. R400 is a lot of money I could have used for something else,” she said.

Another Franschhoek resident Lavern Mouton has been helping the group of beneficiaries from the area which include both of her parents. “One of the residents approached me to call the agent and tell him they don’t want to continue with the policies. I called and he was very rude,” she said.

Mouton said some of the beneficiaries who spoke out felt scared and intimidated when a contingent of 1Life officials showed up at the farm a few weeks later.

“The regional manager was here to talk to us about the agent. We signed on the statements and they told us they would take the matter further with the person who gave the false information.The official said he couldn’t guarantee that we’ll get our money back because it wasn’t the company’s policy,” she said.

Davids said that the majority of the group were uneducated and trusted the agent claiming to represent SASSA. “These are old people who need every cent they get. When people hear that SASSA is involved, they go with it because they think they have to do it,” she said.

The house in Franschhoek of Helena Davids and her family. Photo by Masixole Feni.

Black Sash director Lynette Maart said they assisted the group to have the “illegal” deductions cancelled. “The deductions were stopped from the end of January. This was unethical business practice,” she said.

Black Sash Regional Manager Colleen Ryan said she intends questioning the insurance company on their procedures around sales policies.

“Before agreeing to cancel the policies, the group was asked to give statements. We then had to send individual letters for each of the beneficiaries to 1Life stating the reasons for the cancellation. This makes it very difficult,” she said.

1Life brand manager Rick Rupping said the company was still in the process of investigating the matter further, but vowed the group would get their money back by Tuesday 14 April.

“During our investigation, we determined that all 18 of the individuals have 1Life funeral policies. The independent sales agent involved in the sale of these policies, is employed by a brokerage that sells products on behalf of 1Life,” he said.

The agent has since been suspended and a full investigation has been lodged into the cases and the particular brokerage, he said.

“We do not take lightly to unfair business practices and work closely with the police and other law enforcement agencies to ensure those who engage in such ill practices are always prosecuted to the full extent of the law,” he said.

Rupping added that 1Life does however have permission from SASSA to provide funeral policies in terms of the Social Assistance Act.

Western Cape SASSA spokesperson Shivani Wahab confirmed that they have received numerous complaints about companies offering financial products under the pretense that it is SASSA endorsed.

“SASSA is in no way linked to any company that offers financial products such as micro loans, airtime and insurance products including life and funeral covers. We also do not endorse any products sold by such companies,” she said.

Shivani warned beneficiaries against falling prey to scams and other marketing tactics which are often done by cellphone.

“Beneficiaries should not authorise deductions against their cards, except for the one funeral policy deduction that does not exceed 10% of the social grant value authorised in terms of legislation,” she said.

To report unlawful deductions or lodge a complaint, social grant beneficiaries can contact the SASSA helpline at 0800 600 160.