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News Desk Legal Reporter
In the past, on at least two occasions, grieving families brought the bodies of deceased relatives to bank branches following delays in funeral policy pay-outs, highlighting the importance of following proper legal procedures when disputes arise over insurance claims.
Funeral policies are regulated financial products administered by insurers and, in some cases, banks acting as intermediaries. Where delays or disputes occur, claimants are encouraged to first confirm the policy details, ensure premiums are up to date and gather all required supporting documents. These may include certified death certificates, identity documents, claim forms and banking details.
If payment is delayed, a formal written complaint should be submitted to the insurer or bank involved. Should the matter remain unresolved, complainants may escalate it to the National Financial Ombud Scheme South Africa (NFO), which handles disputes involving financial institutions and insurers.
Complaints involving regulatory concerns or broader systemic issues may also be referred to the Financial Sector Conduct Authority (FSCA), which oversees the conduct of financial institutions. Legal action may be pursued as a last resort where a valid claim remains unpaid.
There is no legal requirement for a deceased person’s body to be presented at a bank branch or insurer’s office during a claims process. Legal experts warn that such actions may disrupt public order and could potentially expose those involved to legal consequences, depending on the circumstances.
Consumers are advised to keep copies of all policy documents, ensure beneficiaries are clearly nominated and follow official complaint procedures to help avoid unnecessary delays in the processing of funeral policy claims.