FSCA Communication 14 outlines the regulator’s expectations regarding the culture and responsibilities of insurers and financial services providers in respect of premium collection of funeral policies.
“The communication addresses premium collection by certain funeral parlours that are also carrying on business as authorised financial services providers,” Carolee Reyneke-Minnaar Moonstone’s compliance research and development specialist notes. She indicates that FSCA acknowledges the importance of premium payments by customers and implores funeral parlours that collect cash from clients, to do so in compliance with the COVID-19 Regulation, particularly social distancing, and advises that, where possible, clients must be encouraged to make payments electronically.
“Attention is drawn to the grace period in instances where a premium has not been paid on its due date, as provided for in the Policyholder Protection Rules issued in terms of the Long-term Insurance Act, 1998 and the duty by an insurer to notify policyholders accordingly,” Reyneke-Minnaar emphasises.
Click here to download FSCA Communication 14.
