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FSB says be wary when buying funeral policies

09 May 2006 Russel Michaels

The Financial Services Board (FSB) has once again called on the public to be cautious when buying funeral assurance after 17 entities were probed for conducting unregistered funeral assistance business in Port Shepstone.

The purpose of funeral assurance, also known as assistance business, is to provide cover to help pay for the costs of funerals.

The most important feature of a funeral policy is that it must be underwritten by a registered long-term insurance company. This is to ensure that the member is guaranteed a legitimate claim in the case of an insured event (death).

Some operators selling funeral assurance are not registered to do so like the 17 in Port Shepstone. The FSB is concerned as fraud in the funeral assistance business is rampant and the risks of policyholders not being paid are high.

The 17 unregistered entities investigated by the FSB are:

AAH Family Funeral Brokers
Bechoo's Funerals
Freeman's Funeral
Good Hope Funeral Parlour
Harmony Funeral Service
Maharaj's Funeral Services
Martin's Funeral Parlour
Masibambisene Funeral Service
Masizenzele Funeral Services
MJS Cash Loans
Peace Funerals
Riskfin Funeral Services
SAI Funeral Services
Shepstone Memorial
Sizabantu Professional Burial Clubs
Sizakancane Funeral Services
Siyeza Funeral Services

For more information contact the FSB toll-free on 0800 202087 or 0800 10 443.

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