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.

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.