A former employee at Momentum Metropolitan Life Limited has been debarred from working in the financial sector after he was accused of opening two funeral policy plans without the client’s consent.

Khathutshelo Tshifularo worked for the insurance company from September 2022 until June 2024.

According to Momentum, Tshifularo allegedly committed fraud in September 2023 when he electronically enrolled and submitted two funeral policy plans for a client without her consent. He was also accused of later upgraded the policies.

The insurance company accused him of writing and enrolling fraudulent funeral policies, knowing them to be false and invalid.

He was debarred after a client disputed debit order transactions from her bank account. She claimed she had not consented to any deductions by Momentum and requested that both funeral policies be terminated and the debited amount refunded.

The client further provided an affidavit to substantiate her complaint and also provided an email and other evidence in the form of screenshots of conversations between herself and Tshifularo.

Following an investigation and hearing, the insurance company decided to debar Tshifularo in February 2025.

In an effort to challenge the decision, Tshifularo sought recourse at the Financial Service Tribunal where he denied committing fraud.

In his application, he explained that he met the complainant in August 2023 in Tshwane during a South African Police Service (SAPS) where all insurance companies were invited.

He stated that the client furnished him with all her particulars, including those of the beneficiaries. Subsequently, he entered the details, the client accepted the quotation, and the transaction was concluded successfully.

He said he believes that his manager and regional manager contacted the client to confirm that they approved her application. 

He further argued that he was never given the opportunity to present his case; and the insurer only relied on the client’s affidavit and did not call the client to give oral evidence. Moreover, he was not legally represented.

Analysing the evidence, Advocate Sandile Khumalo stated that the FAIS Act does not mandate insurers to obtain oral evidence from clients.

Khumalo also found evidence from the transcripts showing that Tshifularo was given the opportunity to answer the accusations and present his side of the story.

Further weakening Tshifularo’s case, Khumalo highlighted a WhatsApp exchange as a crucial piece of evidence against Tshifularo. In the conversation, the client accused Tshifularo of fraud, to which he responded with an apology rather than a denial. Furthermore, Tshifularo was unable to explain how he obtained the client’s details when questioned. 

Additionally, in a private conversation with the client, he offered to refund her the premiums from his own pocket.

“This is not conduct consistent with someone who believes that the policies were properly authorised,” said Khumalo.

“I am therefore satisfied that the debarment procedure prescribed in section 14 of FAISA has been followed. It is in any event not one of the grounds for reconsideration that the prescribed procedure was not complied with,” he added.

Tshifularo’s application for reconsideration was dismissed.

sinehlanhla.masilela@iol.co.za

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