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FSB lists suspect funeral policy operators

Insurance
The Financial Services Board (FSB) is investigating 17 businesses selling funeral policies, again recommending caution when you take out this type of insurance policy.

The entities under investigation are: Phela Ke Phele of Schweizer Reneke, North West; ALG Funeral Services of Maboloka, North West; Zarra Funeral Home of Thohoyandou, Limpopo; Zelda’s Wreaths and Coffins of Victoria West, Northern Cape; Amohelang Family Support Scheme of Witsieshoek, Free State; Lisakhanya Prepaid Funeral of Motherwell, Eastern Cape; Noah Funerals of Stutterheim, Eastern Cape; TK’s Society of Residensia, Gauteng; Tladi Funerals of Sebokeng, Gauteng; Kotelo Funerals of Soshanguve, Gauteng; ERC Cebekulu of Soweto, Gauteng; Blue Rain Funeral Services of Lwamondo, Limpopo; Eastbridge Capital SA of Butterworth, Eastern Cape; Tshepho Funerals & Undertakers of Polokwane, Limpopo; Bathopele Funeral Parlour of Schweizer Reneke, North West; Sisa Daniels Burial Society of Despatch, Eastern Cape; and Olitsoe Funeral Services of Nellmapius, Gauteng.

The FSB says these entities failed to provide proof that their funeral policies are underwritten by a registered long-term insurance company, as required by law. Selling policies not underwritten by a long-term insurer amounts to running unregistered insurance business. Entities breaching the Long-term Insurance Act in this regard may be subject to a fine or imprisonment on conviction.

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If you have a policy that is not underwritten, it is highly unlikely that the policy provider will pay out in the event of a claim. If you have a query in connection with any of the businesses listed above, you can contact Milton Sebaka on 012 422 2875.

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