The Financial Services Board is currently investigating nine funeral insurance providers which the regulator believes are trading illegally. The businesses under investigation include: Faizel Dollie Funeral Home, Clarinise Funeral Services, Speelman Family Funeral Home, City Funeral Fund t/a City Funerals, Holy Cross, Maphutha Dihuswana Funeral Group, Tshwaragano Funerals and Omega Funeral Services.
The businesses were requested by the FSB to provide proof that they are underwritten by a registered long-term insurance company, as required by law, and were given 10 days to respond. However, the businesses either failed to respond to this request or have failed to confirm that they are underwritten by a registered long-term insurance company.
The FSB added: “The FSB investigates and takes action against entities who 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.”