The Complainant took out a funeral policy with the Respondent, covering her uncle for R10,000. After his death in July 2024, she submitted a valid claim, which the Respondent acknowledged but only partially paid R5,000, despite promising to pay the remaining amount by March 31, 2024.

The issue was whether the Respondent failed in its duty to process and pay the claim in full. Section 2 of the FAIS Act and Rule 2A.8.1 of the Policyholder Protection Rules (PPR) state that financial service providers must act honestly, fairly, and diligently.

This Office explained that the Respondent breached these obligations by failing to honor the settlement agreement and withholding the remaining R5,000.

The Office found that the Respondent’s conduct violated both the FAIS Act and PPR and ordered payment of the outstanding amount with interest.