Saturday 19 May 2018

The Voice - Consumer's Voice

Where’s my policy?

I been having an education policy with an insurance company for the past 3 years and they were deducting P300 directly from my salary. The policy was supposed to mature this year. So when I called enquiring about it I was told I have closed the account in 2015 and it stopped deducting. Now they say I have to pay all the instalments in order for me to resuscitate the policy yet they don’t have any proof that I instructed them to stop the policy. They closed it because they say i wrote a letter instructing them to close it but they can't provide the stated letter. Surprisingly they have all my documents except that one.

I didn't notice that the deductions stopped because they were deducting from the salary and I didn't pay attention to the salary advice. They even did not consult me to come and claim my termination benefits now they say the policy used that money up as a default penalty.

I think you probably know what I’m going to say.

When you agree to a savings scheme like this, or an insurance policy or even a bank loan, the responsibility for paying the instalments rests entirely with you, the customer. If something goes wrong and your employer’s payroll system stops deducting from your salary or the bank stops making your monthly payments it’s still your job to notice that the payments have stopped, even if the error wasn’t of your making. You are the one that signed the agreement, not your employer or your bank.

It really is incredibly important that we all check our payslips and bank statements to ensure that we’re honoring our obligations.

In your case it’s more complicated. Surely if this insurance company says that you instructed them to close the policy then they have a record of that? If they don’t, what sort of filing system do they have?

I suspect that the solution to this is simple. You WILL need to make up the payments you missed if you want the policy re-established, there’s no escaping from that. But let’s see what they say about that letter that doesn’t seem to exist.

Is Jamalife real and legit?

Yes, it’s real. Is it legit? That’s more complicated. If you think pyramid schemes are legit, then yes, it’s legit. However, if like me, you think pyramid schemes are scams run by crooks who exploit the naïve, then no, it’s not legit.

Jamalife describe themselves as “an online cum offline network marketing organization and was born out of the need to build up people financially all across the globe to the point of experiencing high quality life in all areas of living”. Which means exactly nothing.

On the subject of products, they talk about “Human Capital Development”, “Food Security”, “Online mail”, “Flight and hotel booking”, “Assets and Property acquisition” and “Financial empowerment”. Again, that’s just meaningless nonsense.

Like all pyramid schemes they require their victims to recruit multiple layers beneath them. With this scam they call their levels Builder, Sapphire, Ruby, Emerald, Diamond, Crown diamond, Ambassador and finally Crown Ambassador. Within each of these levels there are sub-levels the victims will need to progress through if they want to get to the top. Once you get to the top of “Crown Ambassador” level they say you’ll get R3,900,000 and a Range Rover worth R2,210,000. Sounds great but how many people will you need to recruit to get to this level?

I did the maths. To get to this level the network beneath you would need to consist of 16,777,214 people.

The good news is that for once Jamalife is a pyramid scheme that’s honest about its business model. They say "any rewards or earnings that are offered from Jamalife Helpers Global through the Business Plan is the result of members referring or signing up other willing members". At least they’re honest.

One more thing. At the time of writing this, their web site is unavailable and that’s very often a sign that a pyramid or Ponzi scheme is about to collapse. You’ve been warned!

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