FSB warns against illegal funeral policies – six schemes under investigation

The Financial Services Board (FSB) is investigating six entities selling funeral policies and continues to warn the public to be cautious when purchasing such policies.

The entities under investigation are:

These entities were requested by the FSB to provide proof that their funeral policies are underwritten by a registered long-term insurance company, as required by law, and were afforded 10 days to respond. The entities have either failed to respond to this request or have failed to confirm that their funeral policies are underwritten by a registered long-term insurance company.

The FSB investigates and takes action against any entity that sells funeral policies to the public whilst such policies are not underwritten by a registered long-term insurance company. This conduct amounts to running unregistered insurance business thus breaching the provisions of the Long-term Insurance Act 52 of 1998.

Entities (including their owners) that breach the provisions of the Long-term Insurance Act 52 of 1998 may be subject to a fine or imprisonment upon conviction.

Any regarding the above-named entities may be directed Ms Nontokozo Magasela, on the following contact numbers: 012 428 8080 or email: [email protected].