The Office of the FAIS Ombud has upheld a complaint against Luvuyo Burial and Consulting (FSP number 47550) for failing to pay the full funeral claim benefit owed to the complainant, Mr Maruna Ndeleni. When the complaint was received, Luvuyo was a licensed Financial Services Provider operating in Khayelitsha, Western Cape.
Mr Ndeleni lodged a complaint with the FAIS Ombud after Luvuyo failed to honour a R20 000 claim under a funeral policy held by his late wife, Mrs Kholelwa Ndeleni. Despite being listed as the spouse and beneficiary, and after several attempts to follow up on the claim since January 2024, only a single payment
of R5 000 was made by the Responden t in March 2025. The outstanding balance of R15 000 remained unpaid.
The policy, underwritten by Sanlam Development Markets Limited until May 2021, was no longer underwritten, a serious regulatory concern. Luvuyo agreed to a payment plan in November 2024 but failed to follow through.
In terms of Rule 2A.8.1 of the Policyholder Protection Rules (PPR)¹, it is provided that “An insurer must, within two business days after all required documents in respect of a claim under a microinsurance policy or a funeral policy have been received, (a) assess and make a decision whether or not the claim submitted is valid, and (b) (i) authorise payment of the claim; (ii) repudiate the claim; or (iii) dispute the claim and notify the claimant of the dispute.”
Rule 2A.8.2 of the PPR further states that “If a claim is disputed as referred to in rule 2A.8.1(b)(iii), the insurer within 14 business days after expiry of the period referred to in rule 2A.8.1 (a) may further investigate the claim; (b) must make a decision whether or not the claim submitted is valid; and (c) must pay or repudiate the claim.”
Furthermore, Luvuyo did not honour Treating Customers Fairly (TCF) Outcome 6, which requires that customers do not face unreasonable post-sale barriers when they want to change a product, switch providers, submit a claim, or make a complaint.
The Office found that Luvuyo failed to render the financial service in accordance with the PPR or the TCF approach. As a result, it was found to be contractually liable for the payment of the claim.
The Ombud upheld the complaint and ordered the Respondent to pay the outstanding amount of R15 000, with interest at 11.25% per annum from the date of the order until the date of final payment.
The determination was referred to the Financial Sector Conduct Authority (FSCA) for its attention and possible enforcement action.
The FSCA subsequently suspended Luvuyo’s registration on 14 April 2025.
Access full determination here…
Should you believe that you have been financially prejudiced because of the financial service rendered to you with respect to a regulated financial product, please lodge a written complaint directly with the service provider. If the complaint remains unresolved after six weeks, you can visit our Complaints Portal at www.faisombud.co.za and select ‘Lodge Complaint’. Alternatively, you may submit a complaint in writing to info@faisombud.co.za. You can also call our Client Care Centre at (012) 762 5000 or Sharecall at 086 066 3274 for assistance in submitting a complaint.