Machipi and Another v Palabora Mining Company Board of Trustees of Palabora and Others (2023-062156) [2025] ZAGPPHC 84 (6 February 2025)

Machipi and Another v Palabora Mining Company Board of Trustees of Palabora and Others (2023-062156) [2025] ZAGPPHC 84 (6 February 2025)

The court found that section 37C of the Pension Fund Act does not apply to the group life insurance policy administered by Sanlam. The nomination form signed by the deceased is binding regarding the allocation of benefits under the group life insurance policy. The Fund trustees have no jurisdiction to allocate these benefits, and any attempt to do so would be ultra vires. The applicants, as nominated beneficiaries, are entitled to payment of the group life insurance benefits in accordance with the nomination form. The respondents are jointly and severally liable for the costs of the application.

Citation
[2025] ZAGPPHC 84
Parties
Applicant: Chaisa Machipi; Applicant: Caliphonia Machipi; Respondent: Palabora Mining Company; Respondent: Board of Trustees of Palabora; Respondent: Sanlam Life Insurance Ltd
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
6 February 2025
Case Number
2023-062156
Procedural Posture
Review Application / Judgment
Outcome
Application granted in favour of the applicants.
Judges
N G M Mazibuko
Legal Topics
Group Life Insurance, Nomination of Beneficiaries, Pension Fund Act Section 37c, Long Term Insurance Act, Trustee Jurisdiction, Specific Performance
Civil Procedure Banking and Finance Group Life Insurance Nomination of Beneficiaries Pension Fund Act Section 37c Long Term Insurance Act Trustee Jurisdiction Specific Performance

Case Brief

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Parties

Chaisa Machipi

Applicant

Caliphonia Machipi

Applicant

Palabora Mining Company

Respondent

Board of Trustees of Palabora

Respondent

Sanlam Life Insurance Ltd

Respondent

Procedural Posture

Review Application / Judgment

Legal Issues

  1. 1 Whether the group life insurance scheme falls under the ambit of the Pension Fund Act.
  2. 2 Whether the trustees of the Fund have jurisdiction to allocate benefits under the group life insurance policy.
  3. 3 Whether the nominated beneficiaries are entitled to payment in terms of the nomination form.

Ratio Decidendi

The court found that section 37C of the Pension Fund Act does not apply to the group life insurance policy administered by Sanlam. The nomination form signed by the deceased is binding regarding the allocation of benefits under the group life insurance policy. The Fund trustees have no jurisdiction to allocate these benefits, and any attempt to do so would be ultra vires. The applicants, as nominated beneficiaries, are entitled to payment of the group life insurance benefits in accordance with the nomination form. The respondents are jointly and severally liable for the costs of the application.

Court Disposition

Application granted in favour of the applicants.

Orders

  • The application is granted.
  • The third respondent must pay the Group Life Insurance Fund benefits within 30 days in accordance with the member beneficiary nomination form signed by the deceased.