Sassa emphasised that it is illegal for any financial service provider to promote funeral policies using Sassa’s brand.
Some South African Social Security Agency (Sassa) beneficiaries are seeing unauthorised funeral policy deductions from their monthly grant payments.
This has prompted urgent warnings from the agency about potential financial exploitation.
In a statement on Tuesday, Sassa emphasised that it is not a provider of funeral policies, and any deductions made by Financial Service Providers (FSPs) using the agency’s brand are strictly prohibited.
“Sassa as a government agency provides social grants to the poorest of the poor who meet a particular qualifying criteria. Sassa does not provide funeral policies,” the agency declared.
The issue has become dire, with grant recipients reporting unexpected monthly charges.
According to The Citizen’s sister newspaper, the Alberton Record, one Alberton resident reported being deducted R165 each month without authorisation, suggesting the problem extends far beyond isolated incidents.
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Sassa grant beneficiaries urged to take action
Sassa has outlined a clear process for beneficiaries disputing these unauthorised deductions.
Recipients are advised to send an SMS to 34548, including their ID number, full name, the name of the financial service provider, policy duration, and reason for disputing the deduction.
For those uncertain about the source of deductions, Sassa recommends contacting their helpline at 080 060 1011 or visiting a local Sassa office for direct assistance.
Sassa also advised beneficiaries to visit the insurer or FSP for cancellation if they have registered for insurance and are no longer interested.
“Clients are advised to always be vigilant and careful prior to signing any documents,” the agency warned.
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Broader scam implications
The widespread nature of these unauthorised deductions raises significant concerns about the financial vulnerability of social grant recipients.
While Sassa is actively working to address these issues, the agency emphasised that it is illegal for any financial service provider to promote funeral policies using Sassa’s brand.
Beneficiaries who believe they have been incorrectly charged are encouraged to take immediate action by following the agency’s prescribed steps for challenging and canceling unauthorised deductions.
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