My grandmother took out a funeral plan with Barolong Funeral Parlour in Mafikeng which, according to the owner of the parlour, is administered by Hollard Insurance. She has owned the policy for more than a decade and missed only two payments in the beginning of the year. When she went to claim after her son passed away over the past weekend, she was told that her cover had lapsed due to non-payment of the two instalments. She offered to pay the area instalments but her request was rejected. She was never informed of the termination as required by the short term insurance act and her contributions were never refunded. She was never informed of her right of recourse as required by law. This is an illicit and inhumane way of treating people especially an illiterate and elderly member of the population. We plan to report the matter to the FSB, Ombudsman for the short term insurance and the Consumer Commissioner. This is highly unethical.
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