Rabia Mayet | rabiamayet@radioislam.co.za

03 December 2024

3-minute read

Less than 9 months since the launch of the National Financial Ombud Scheme, R161 million has been given back to aggrieved consumers through the resolving of insurance disputes via the ombudsman.

According to Nirosha Maseti, lead ombud of the banking division, the National Financial ombud, “a one-stop shop for all your financial issues” was formed in March this year for easier access for the public. It constitutes all 4 previous insurance schemes – the long-term insurance ombud, the credit ombud, the short-term insurance ombud, and the value ombud.

Complaints by consumers against financial service providers in SA are dealt with by the National Financial Ombud. With the exclusion of 3^rd-party claims, issues like banking complaints, insurance complaints, and credit-related complaints against non-bank institutes can be referred to them. Some of the complaints in the insurance division include companies that did not adhere to the contract, acted against the law, or did not provide proper service. In the banking division, many of these complaints occur in a broad space where investigations are carried out by the National Financial Ombud in order to recommend specific types of recovery. Often when consumers report fraudulent complaints within the banking division and subsequently accounts are not stopped or moneys are not recovered; every transaction after complaints are reported, the bank is liable for.

“Relationships are always centered on contract” and according to Nirosha, if the company “didn’t do what they said they were going to do”, liabilities will go to them. In certain cases, money has even been paid back to customers on the basis of unfair and unreasonable treatment. The National Financial Ombud can be contacted via their website nfosa.co.za.

Listen to the full interview with Ml Sulaimaan Ravat on Sabahul Muslim.