Client demands K400 million from Old Mutual Malawi


A client is demanding K400 Million from the insurance company Old Mutual on allegations that the company used her information to create, without her consent, a savings policy which was used to deduct money from her bank account.

The client has written a demand letter dated 15 March, 2023 to Old Mutual through her lawyers Mbulo Attorneys at Law.

According to the letter, the client in around the month of July 2021 opened Tsogolo Savings policy with a premium of MK100,000 per month on policy which became operational on its first deduction on 9th, July 2021.

However, in the month of April of 2022 the company allegedly used the client’s information without her consent  by creating a separate Tsogolo savings account with premium of K200,000.

“Our client has now discovered that you forged an account in her name by using information she gave you on trust. We would like to like to inform you that your acts in creating another account and deducting money is illegal,” reads part of the letter.

The lawyers argue in the letter that Old Mutual’s actions are fraudulent and amounts to theft and gross negligence such that the company may lose its license if found guilty.

They then demanded K400 million damages from Old Mutual as damages for breach of trust, breach of duty of care, loss of use of money and indemnity legal costs.

They have also demanded Old Mutual to close the two savings accounts in her name and remit the premiums back to the client.

The lawyers have since warned Old Mutual that they will open a case against the company at the High Court if the demands are not met.

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