Home >> News >> News >> FSB probes funeral schemes

FSB probes funeral schemes

Pretoria - The Financial Services Board says 10 funeral policy schemes countrywide are under investigation.

It has again warned the public to be cautious when purchasing such policies.

The companies are:

1) Faizel Dollie Funeral Home; Dollie’s Centre, Market Street in Atlantis;

2) Clarinise Funeral Services, 12408 Phela Street, Orlando Commerce House, Orlando, Gauteng;

3) Abomelezi Funeral Services, 415 Industrial Site, Elliot, Eastern Cape;

4) Speelman Family Funeral Home, 31 Koyona Street, Zwide, Port Elizabeth;

5) City Funeral Fund t/a City Funerals, Ramguiness Funeral Centre, Head Office c/o Boundary and Kimberley Road, Nancefield Industrial, Ramguiness
Centre, Lenasia, Gauteng;

6) Holy Cross, 1082 Puntjiesbos, Coldstreram, Eastern Cape;

7) Maphutha Dihuswana Funeral Group, c/o Witbank and Groblersdal Roads, Verena, Witbank, as well as Groblersdal and Philadelphia Hospital Roads,
Dennilton, Mpumalanga;

8) Tshwaragano Funerals, 23 Slabbert Street, Sannieshof, North West;

9) Omega Funeral Services 7th Village Street, Randfontein, Gauteng.

10) Mitpo Building Society, Mafikeng, North West province.

An FSB spokesperson said it has requested the above-mentioned businesses to provide proof that they have been underwritten by a registered long-term insurance company, as required by law. They have been given 10 days to respond.

The businesses either failed to respond, or failed to confirm that they had been 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 FSB said.

Underwriting policy

The law requires all funeral policies to be underwritten by a registered long-term insurance company, to ensure that policyholders and their beneficiaries are paid out benefits when they claim.

Policyholders must receive a copy of their policy document, which should bear the name of the long-term insurance company which is underwriting the funeral policy.

The FSB again reminded consumers who wish to conduct financial services transactions with any institution or person, to check beforehand if such an institution or person is authorised to render financial services. This can be done by calling the FSB’s toll free number (0800 110 443) or on the website www.fsb.co.za.
 

 

ref - http://www.fin24.com/Money/Investments/FSB-probes-funeral-schemes-20140109