Beware of these funeral policies
2006-06-22
THE Financial Services Board (FSB) has called on the public to be cautious when buying funeral assurance from Zama Funerals of Paarl, which has been probed for conducting unregistered funeral assistance business in the Boland.
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. The FSB is concerned as fraud in the funeral assistance business is rampant and the risks of policyholders not being paid are high.
The Financial Services Board (FSB) is the regulator of the non-banking financial services industry in South Africa. It administers 13 Acts of Parliament on behalf of Government.
For more information contact the FSB toll-free on 0800 202087 or 0800 11443.
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