The Financial Sector Conduct Authority (FSCA) issued communication 14 of 2020 which records the expectations of the FSCA iro the responsibilities of insurers and FSPs when collecting insurance premiums of funeral policies during the COVID-19 crisis.
Apparently some funeral parlours who are also carrying on business as AFSPs, are conducting business in a way that compromises the safety of clients and not in the spirit of the COVID Regulations. Allegedly funeral parlours are requesting clients to go their offices to make premium payments and wait in long queues with close proximity to each other.
The FSCA stated that – although premium payment by customers is very important – funeral parlours that collect cash from clients must do so in compliance with social distancing requirements, and where possible, clients must be encouraged to make payments electronically.
Further, insurers are encouraged to consider the Long-Term Insurance PPRs which provide for a grace period where premiums have not been paid on its due date. Insurers must inform policyholders accordingly.
Contact us today to assess your processes during these challenging times in order to ensure that your business remains compliant.
Director: Fathima Khan-Ahmod
Ahmod Consulting (Pty) Ltd
Ahmod Consulting 