Policy lapsed but SFS still accepting payments

My mother has been a member of SFS in Diepkloof since 2013 or 2014. Unfortunately, due to unforeseen circumstances last year, she missed a few payments. However, she consistently contacted SFS to find out how she could rectify the missed payments, and has been making payments ever since.

In August, she called again to check on her policy status and was informed that there were still outstanding months — but no mention was made of the policy having lapsed. However, when she called yesterday and spoke with Violet, she was told that the policy had lapsed. When my mother asked when this occurred, Violet said she was unsure and could not provide a specific date.

Our concern is: if the policy had lapsed, why was there no official communication — such as an SMS or email — informing her of this? And more importantly, why was SFS still accepting payments if the policy was no longer active?

As per South African law, insurance providers are regulated by the Financial Sector Conduct Authority and the Insurance Act 18 of 2017. This Act requires insurers to act in good faith and treat policyholders fairly. Accepting payments on a lapsed policy without notifying the policyholder or providing coverage could potentially constitute an unfair business practice.

We trust that Mr. Morena will be able to provide clarity on this matter and ensure that my mother is refunded for any payments made after the policy had lapsed. We also hope that the system will reflect accurate notes and that communication with clients will be improved moving forward.