Compensation scam warning

The DOL Compensation Fund (CF) issued a compensation scam warning to employers and workers, against ‘Compensation House’.

“WARNING TO ALL EMPLOYERS WHO ARE REGISTERED WITH THE COMPENSATION FUND. The Compensation Fund administers the Compensation for Occupational Injuries and Diseases Act…

“In terms of section 30 of the Act, The Minister of Labour has issued licences to Rand Mutual Assurance (RMA) and Federated Employers Mutual (FEM or FEMA) Assurance, to administer companies in class 13, 4 and class 5 respectively.

The scam follows increasing privatisation of workplace compensation schemes, partly due to various challenges at the Compensation Fund (see several earlier reports on Sheqafrica.com).

“Employers are warned of a bogus company called Compensation House… [which] is issuing notices to employers informing them that they have been authorised by the Compensation Fund to administer class 1, 5 and 6 employers on behalf of the Compensation Fund.

“The compensation Fund has neither authorised nor has any association with this bogus company.

Compensation House is a state building in Pretoria, that houses the Department of Labour's Compensation Commissioner, and Compensation Fund administration. It is not the name of a private company authorised by the state to insure certain workers against injury or death on duty. Claims to that effect are false.
Compensation House is a state building in Pretoria, that houses the Department of Labour’s Compensation Commissioner, and Compensation Fund administration. It is not the name of a private company authorised by the state to insure certain workers against injury or death on duty. Claims to that effect are false.

“No authorisation has been granted by the Compensation Fund to the company called Compensation House to administer companies in any class.

“Contact the Compensation Fund Fraud Hotline at 0800 204 974 or ethics@kpmg.co.za

“Compensation Fund services are freely available. The Acting Compensation Commissioner is Vuyo Mafata. Dated 13 August 2015.”

Sources; FEM. MBA KZN.

4 thoughts on “Compensation scam warning

  1. Besides this scam, as a health and safety officer I have found in the greater Kwadukuza area that medical practitioners refuse to treat employees on IOD [injury on duty] claims. They give two reasons; The present computer system (Umehluko) of reporting incidents is time-consuming and a giving them hassles; and payments are delayed. They rather treat people registered with a medical aid, or cash.
    I have also tried this system on numerous occasions and still great difficulty in completion of the IOD capture. My suggestion, this reporting system should be decentralised to the provinces, perhaps to work faster. A comment from the CC [Compensation Commissioner] would be appreciated.

  2. Not unusual for medical practitioners to not be treating IOD cases (applies mostly to state employees or SOE employees). The long period they have to wait for payment is the main reason.
    The problem does not always lie at the offices of the Compensation Commisisioner. Many employers do not timeously submit documents to the CC offices so that the claim could be verified; for example, the first medical report.

  3. I must informing you that you is making a infringement on my name. There are only one Ray in Safety. That are me.

    ==== Edmond comments; I guess this is you under a different name, Koos of Safety?
    You have misread the name of Ravind, who writes as Ravsafe.
    What is in a name. There are already many names in health and safety insurance (trading as Compensation), and the number of privatised letters of good standing is growing. And we need them to save us from state services.
    There are already several names in health and safety professionalisation, and the number of semi-privatised designation stamps is growing. We are told it would stop the fly by nights.
    Perhaps Safety Koos and Sons and Friends will also take the final step up from consulting; to Institute?

  4. we had the same problem really this Umehluko is time consuming. I had an employee who was at the hospital for a month waiting on Umahluko to respond only responded yesterday.

Comments are closed.