Elderly people in Namibia have become a target for malpractising financial institutions, as after Namfisa received N$1 449 937 million in recoveries.
Complaints have been logged against financial institutions by beneficiaries of pension funds who were not adhering to the institutions regulations.
“The nature of the complaints NAMFISA received during this period ranged from non-cancellation of contracts, non-payment of pension benefits, non-payment of pension contributions, rejection of funeral benefits, disability benefit funds and insurance claims,” said the report.
It further explained that other complaints included queries, overcharged interest, non-payment of refunds, poor information on loan granted, service not delivered, unacceptable service delivery, denial of hospital benefit claims, claim dispute, overpayment, illegal deductions and extension of repayment periods.
The most prominent complaints received by NAMFISA in the medical aid fund capital markets were queries on unclaimed individual shares and the denial of hospital benefits and the denial of travelling expenses.
The combined assets of the regulated non-banking financial sector in Namibia by The Namibia Financial Institutions Supervisory Authority (NAMFISA) is N$391.483m, their latest annual report has revealed.
The biggest chunk of this was taken by investment managers, at the sum of N$136.186m, while pension funds also took up a significant amount with, N$119.569m as of 31 December 2014.
Ironically, while the micro-lenders industry has one of the smallest asset value at N$3.382m, the industry garnered the most complaints.
236 complaints were received in 2014 for the micro-lending and credit agreement industry, with 220 cases being resolved.
A total of 537 complaints were received by NAMFISA in 2014, while 79 were not resolved.
The capital markets and medical aid funds industries received the least complaints, with 1 and 2 respectively.
Furthermore NAMFISA recovered an amount of N$2.521m during the 2014 period in respect of complaints addressed, compared with the recovery of N$1.437m in the previous financial year for the benefit of consumers.
“This represents a 75.4% increase, and can be attributed to increased awareness among consumers and their rights,” noted the report.
An amount of N$195 127 was recovered from the short-term insurance industry while N$310 679 was recovered from the long-term insurance institutions. A total of N$565 332 was recovered from the micro-lending and credit agreement institutions, while N$1.449m was recovered from the pension fund. This totals N$2.521m in all industries regulated.