FSB warns again illegal funeral policies
It listed the entities under investigation as Faizel Dollie Funeral Home in the Western Cape Province, Clarinise Funeral Services in Gauteng, Abomelezi Funeral Services cc in the Eastern Cape, Speelman Family Funeral Home in the Eastern cape, City Funeral Fund t/a City Funerals in Gauteng, Holy Cross in the Eastern Cape, Maphutha Dihuswana Funeral Group in Mpumalanga, Tshwaragano Funerals in North West Province and Omega Funeral Services.
The regulator said the businesses had either failed to respond to this request or have failed to confirm that they are underwritten by a registered long-term insurance company.
"The purpose of funeral insurance is to provide cover to help pay for the costs of a funeral. The law requires that all funeral policies must be underwritten by a registered long-term insurance company.This is to ensure that policyholders and their beneficiaries are paid their benefits when they claim."
"Policyholders must receive a copy of their policy document, which must bear the name of the long-term insurance company which is underwriting the funeral policy," the FSB said.
The FSB said it will investigate and take action against entities that sell funeral insurance policies to the public whilst such policies are not underwritten"Such a conduct amounts to running an unregistered insurance business and is therefore in breach of the provisions of the Long-term Insurance Act 52 of 1998, and may be subject to a fine or imprisonment upon conviction,"concluded the FSB.
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