Teachers fall victim to insurance fraud
Teachers demand an explanation from a local insurance broker after fraudulent funeral policies were opened in their names.
AUTHORITIES are trying to pinpoint perpetrators of a scam that has seen hundreds of Zululand teachers fall victim to identity fraud.
This comes after irate teachers demanded an explanation from a local insurance broker on Friday after fraudulent funeral policies were opened in their names.
The Zululand Observer learnt that Xhoko Financial Services contracted by 1Life Direct Insurance, had in the last two months, sold about 150 funeral policies ranging between R500 and R800 to teachers within the uThungulu District.
Affected teachers hailed from Empangeni Preparatory School, Umcabango High School and several other public schools within the district.
However, teachers told the Zululand Observer the policies were signed without their consent and amounts were deducted from their salaries.
‘Innocent people are having their hard earned money stolen from them,’ said Empangeni Preparatory School Principal, B.D Dlamuka who has also fell victim to the scam.
‘What if six months down the line a hit is placed on us? So the same crooks can claim from these policies or can allege that we are dead at Home Affairs.’
Confrontation
Owner of Xhoza Financial Services, Bheki Biyela of eSikhaleni came under fire on Friday at Empangeni Preparatory School after teachers demanded their money.
‘I pledge to pay you all back from my own pocket. I have been an insurance broker since 2005. I could never do something like this. My practising license would be barred,’ said Biyela.
However, his words of reassurance did not appease infuriated teachers.
After the confrontation, victimised teachers wrote down the various amounts of money which had been deducted from their salaries in the hopes of Biyela reimbursing them.
The backlash from teachers and the intervention of the Zululand Observer ensured a prompt response from Biyela.
‘He returned a few hours later with a black bag amounting to almost R10 000 and he paid every single teacher who was defrauded,’ said Dlamuka.
Police arrived a short while later on scene, together with uThungulu Education District Director, David Chonco but no immediate arrests were made.
‘We strongly condemn this behaviour and I urge all those affected to kindly report the matter to our offices,’ said Chonco.
The District Director is expected to meet all scam victims today (Monday) at Empangeni Preparatory School at 10am to resolve the matter.
