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The Citizen
4 days ago
- Business
- The Citizen
Old Mutual says it pays an average of R59 million per working day in life insurance claims
Old Mutual has paid out more than R14.7 billion in claims. Insurance giant Old Mutual has revealed that it paid an average of R59 million per working day for life insurance and other life underwriting claims. The insurer published claim statistics for 2024 on Friday, showing that it has paid out more than R14.7 billion in claims, with a 95% payout ratio on underwritten claims. Breakdown of claims paid out is underwritten policies, corporate claims and non-underwritten policies. ALSO READ: Here is how much it cost Old Mutual to build its near-to-launch bank Old Mutual underwritten policies According to the insurer's stats, underwritten policies include life, disability and illness claims. For these, Old Mutual paid out more than R7.3 billion in 2024. Most of the money, R6.2 billion, went to death claims. Old Mutual reported a 98% claim payout for 2024. Illness claims cost the insurer R888 million, while disability claims cost R297 million. 'Causes of underwritten claims include: cancer, trauma, cardiovascular disorders, central nervous system disorders, respiratory system disorders and musculoskeletal disorders,' said Old Mutual. Since 2002, Old Mutual has paid out more R91 billion in underwritten claims. Reasons why some claims were not paid out are due to non-disclosure, fraud, suicide exclusion, among others. Old Mutual death claims The insurer reports that death claims increased in 2021, reaching R9.73 billion, an 88% rise from R5.16 billion in 2020, primarily due to the Covid-19 pandemic. However, claims went back to normal levels after that, as Old Mutual paid R5.8 billion in 2022 and R5.6 billion in 2023. 'Life insurance includes a terminal illness benefit that pays the full cover amount if the insured person is diagnosed with a terminal illness and has less than 12 months to live.' 44% of death claims are due to car accidents, followed by crime and violence, accounting for 28% of death claims. 17% of death claims are due to shooting accidents, 6% due to accidents (unspecified location), 3% burns and 2% drowning. Disability claims 'According to the World Stroke Organization, stroke is a leading cause of death and disability worldwide. Globally, one in four adults over the age of 25 will have a stroke in their lifetime,' said the insurer. According to the claim stats, 23% of the disability lump sum claims were due to musculoskeletal disorders, 21% central nervous system disorders, 15% cancer, 10% psychiatric disorders, 7% cardiovascular disorders, 5% connective tissue disorders, 5% sensory and communication, and 14% other. The stats show that cancer (50%) is the leading cause of illness claims, followed by cardiovascular disorders (25%), central nervous system disorders (13%), respiratory system disorders (3%), connective tissue disorders (2%), sensory and communication (2%), Musculoskeletal disorders (1%) and other (4%). NOW READ: Former Sanlam CEO to replace Iain Williamson as Old Mutual CEO after 32 years
IOL News
15-05-2025
- Business
- IOL News
Residents welcome eThekwini's debt relief proposal but call for long-term solutions
The Bluff Ratepayers and Residents Association said that the eThekwini municipality's proposed 50% debt write-off is a welcome gesture, but it risks being more of a tick-box exercise than a real solution. Image: File GIVEN the economic times, the eThekwini Municipality's proposal to write debt off on ratepayers' utilities service bills has been received with open arms by residents, but they also fired back that the entity needed to tighten-up its overall act. They were referring to the municipality's management and utilisation of its resources, which would help reduce the wasteful expenditure that hampers effective service delivery. The Bluff Ratepayers and Residents Association said that the municipality's proposed 50% debt write-off was a welcomed gesture, but it risked being more of a tick-box exercise than a real solution. Norman Gilbert, chairman of the BRRA said that while it might offer short-term relief to struggling households and businesses, it didn't address the deeper issues causing the debt—like poor service delivery, aging infrastructure, and unaffordable tariffs. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ethekwini councillors gave the special debt relief programme the go-ahead at a council meeting on Wednesday. The water debt as at the end of January 2025 stood at R14.7 billion, which was due to undetected underground leaks and short payments by insurers. The municipality has found that many customers were unable to settle the debt and thus regarded this as irrecoverable. The programme was an initiative aimed at reducing municipal debt by offering residents and businesses a 50% write-off, provided they pay the balance in full before the end of the financial year. Other conditions include that prior to the customer settling the 50% of the arrear debt owed as at January 31, 2025, a customer must settle the entire debt from February 2025 to April 2025. The municipality stated that should a customer not be in a financial position to settle the debt for the months after January 31, 2025, such a customer must then enter into a payment plan not exceeding six months, without making any down payment. The total debtors book for the municipality, as at January 31, 2025 was R36 billion, which grew significantly by R7.9 billion, when compared to January 2024. Government departments and parastatals owe the municipality R1.3 billion. Gilbert stated that the water debt highlights systemic failures that have been ignored for too long. 'Similarly, R9 billion in unpaid rates and billions in household debt show just how unaffordable basic services have become for many residents. This isn't just about non-payment, it is about survival. The situation is worsened by government debt, which sends the wrong message to the public and undermines the municipality's debt recovery efforts,' he said. Gilbert stated that while the debt relief proposal could help reduce the growing debt book, it lacks a long-term plan to prevent the same problem from recurring. Ish Prahladh, chairperson of the eThekwini Ratepayers and Residents Association (ERRA), stated that ratepayers should be given oversight of municipal finances to put an end to tenders, advocate for competent staff and unnecessary overtime expenditure and consultancy fees. 'A municipal debt write-off will definitely benefit residents. Pensioners earn R2,000 but have to pay R6,000 municipal bills at times (and this) makes life impossible for some residents. Hire competent plumbers to rectify the problems in the water department and cut our water losses to zero. Water insurance is pathetic as it does not cover the amount that was lost by the residents," Prahladh said. DAILY NEWS
IOL News
14-05-2025
- Business
- IOL News
eThekwini ratepayer associations warn against 'superficial' 50 percent debt relief measure
The Bluff Ratepayers and Residents Association said that the eThekwini municipality's proposed 50% debt write-off is a welcome gesture, but it risks being more of a tick-box exercise than a real solution. Image: File The Bluff Ratepayers and Residents Association said that the eThekwini municipality's proposed 50% debt write-off is a welcome gesture, but it risks being more of a tick-box exercise than a real solution. Norman Gilbert, chairman of the BRRA said that while it may offer short-term relief to struggling households and businesses, it doesn't address the deeper issues causing the debt—like poor service delivery, aging infrastructure, and unaffordable tariffs. Ethekwini councillors gave the special debt relief programme the go-ahead at a council meeting on Wednesday. The water debt as at the end of January 2025, of R14.7 billion was the biggest contributor, due to undetected underground leaks and short payments by insurers. The municipality has found that many customers are unable to settle these debts and thus regarded this as irrecoverable. The programme is an initiative aimed at reducing municipal debt by offering residents and businesses a 50% write-off, provided they pay the balance in full before the end of the financial year. Other conditions include that prior to the customer settling the 50% of the arrear debt owed as at 31 January 2025, a customer must settle the entire debt from February 2025 to April 2025. The municipality stated that should a customer not be in a financial position to settle the debt for the months after 31 January 2025, that such a customer must enter into a payment plan not exceeding six months, without making any down payment. The total debtors book for the municipality, as of 31 January 2025 was R36 billion which grew significantly by R7.9 billion, when compared to January 2024. Government departments and parastatals owe the municipality R1.3 billion. Gilbert stated that the water debt highlights systemic failures that have been ignored for too long. 'Similarly, R9 billion in unpaid rates and billions in household debt show just how unaffordable basic services have become for many residents. This isn't just about non-payment, it is about survival. The situation is worsened by government debt, which sends the wrong message to the public and undermines the municipality's debt recovery efforts,' he said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Gilbert stated that while the debt relief proposal could help reduce the growing debt book, it lacks a long-term plan to prevent the same problem from recurring. Ish Prahladh, chairperson of the eThekwini Ratepayers and Residents Association (ERRA), stated that ratepayers should be given oversight on municipal finances to put an end to tenders, advocate for competent staff and unnecessary overtime expenditure and consultancy fees. 'A municipal debt write-off will definitely benefit residents. Pensioners earn R2,000 but have to pay a R6,000 municipal bill (and this) makes life impossible for some residents. Hire competent plumbers to rectify the problems in the water department and cut our water losses to zero. Water insurance is pathetic as it does not cover the amount that is lost by the residents," Prahladh said.
IOL News
14-05-2025
- Business
- IOL News
eThekwini councillors divided over new debt relief programme for residents
The eThekwini Municipality water debt as at the end of January 2025 stands at R14.7 billion. This was the biggest contributor to municipal debt due to undetected underground leaks and short payments by insurance. The municipality has found that many customers are unable to settle these debts and thus regarded this as irrecoverable. Image: Independent Media Archives eThekwini councillors had mixed reactions to the special debt relief programme, an initiative aimed at reducing municipal debt by offering residents and businesses a 50% write-off, provided they pay the balance in full. The eThekwini Revenue Management Unit (RMU) devised the annual debt collection and debt reduction strategy to run before the end of the June 2025 financial year. Other conditions put forth were that, after the customer settles 50% of the arrears debt owed as of January 31, 2025, the customer must settle the entire debt for February 2025 to April 2025. The municipality stated that, should a customer not be in a financial position to settle the debt for the months after January 31, 2025, such a customer must enter into a payment plan not exceeding six months, without making any down payment. The water debt as at the end of January 2025, of R14.7 billion, was the biggest contributor, due to undetected underground leaks and short payments by insurance. The municipality has found that many customers are unable to settle these debts and thus regard this as irrecoverable. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The total debtors' book for the municipality as of January 31, 2025, was R36 billion, which grew significantly by R7.9 billion, when compared to January 2024. At the end of the 2023/2024 financial year, the municipality had made provision for doubtful debt in the amount of R19 billion while in the 2022/2023 financial year, it was R13 billion. The debt programme was approved at a council meeting on Wednesday, with councillors calling for an extension of the June deadline because they felt that many residents would be left exposed to debt collection actions if they did not find the money. DA councillor Alicia Kissoon stated that debt relief must come with accountability and not just demands. Kissoon said residents are suffocating under the weight of historic municipal failures, which are failures they did not create. 'For years, households have endured broken meters, inaccurate bills, undetected leaks, and little to no redress. This has eroded trust and pushed many to the brink. Now they are told to find 50% of their arrears just to qualify for help. For many, that is not relief but survival, weaponised as policy,' Kissoon said. Kissoon said residents deserve a clear, compassionate, and coordinated rollout, real-time support, and capacitated officials, which are essential if this intervention is to be meaningful. 'No resident should be forced into settlement agreements for charges they do not lawfully owe. We will not stand by while families are pressured into financial concessions for the city's administrative mistakes,' she said. Close to 5,000 eThekwini councillors and senior managers have fallen behind in paying their municipal accounts, with staff debt standing at R80 million. Nkosenhle Madlala, an ANC councillor, said that during a budget imbizo, one of the issues raised by the communities was that they were saddled with high bills and owed the municipality money. 'I want to encourage our employees who are also saddled with bonds and other debts and who are buckling under indebtedness to come forward and make use of this programme. The municipality must not be quoted in reports stating that we are failing to collect debt from our employees. Some employees are so over-indebted that there is nothing to take from the payslip otherwise; we will be sending the employee home without any money,' Madlala said. Jay Singh, of the United Independent Movement (UIM), emphasised that the government and parastatals' R1.3 billion debt should not exist, and greater emphasis should be made to collect the outstanding money. Minority Front councillor Sunitha Maharaj suggested that the Revenue Management billing system must be replaced and that the municipality revert to separate billing for rates, water, and electricity. 'Our billing system, if not replaced, is going to require more debt relief strategising to reduce the city's debtor book,' Maharaj said.
IOL News
14-05-2025
- Business
- IOL News
eThekwini councillors approve 50 percent debt write-off for residents and businesses
eThekwini councillors approved the proposed special debt relief programme intended to assist domestic and business customers with a 50% debt write-off of their arrears' debt, as at January 31, 2025. Image: Independent Newspapers eThekwini councillors have approved the proposed special debt relief programme intended to assist domestic and business customers with a 50% debt write-off of their arrears' debt, as at January 31, 2025. This was on condition that domestic and business customers pay 50% of the corresponding debt in full and final settlement. The matter was discussed at a council meeting on Wednesday and the special debt relief programme will run until June 30, 2025. This is one of the debt collection and debt reduction strategies developed by the eThekwini Revenue Management Unit. The water debt as at the end of January 2025 was sitting at R14.7 billion. The municipality stated that the biggest contributor to this debt is undetected underground leaks and short payments by the insurance. The municipality has found that many customers are unable to settle these debts and thus regarded this as irrecoverable. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The total debtors' book for the municipality, including interest charges as of January 31, 2025, was R36 billion. The municipality stated that the debtors' book grew significantly by R7.9 billion when compared to January 2024. Organs of state, including government and parastatals' accounts, amount to R1.3 billion. Other conditions put forth before the council were that after the customer settles 50% of the arrear debt owed as at January 31, 2025, the customer must settle the entire debt for the months of February 2025 to April 2025. The municipality stated that, should a customer not be in a financial position to settle the debt for the months after January 31, 2025, such a customer must enter into a payment plan not exceeding six months, without making any down payment. Also, all water loss insurance customers who had submitted claims for water leaks, but were paid by the insurance only part of the amount claimed, the difference (capital debt) between the amount claimed, the average monthly consumption, and the amount paid by the insurance, could be written off. ANC councillor Nkosenhle Madlala said the programme was important because these were some of the issues raised by the communities during the Integrated Development Plans (IDP) public consultations. Madlala said this programme came at the right time because people were saddled with debt. "The ANC encourages people to take this opportunity with both hands to avoid a last-minute rush. I encourage those in rental flats and those with bills in their names to come forward and benefit from this programme," he said.
