Early last year the Prudential Authority (PA) responded to queries raised by ASISA relating to the definition of “Beneficiary” as contained in Schedule 2 of the Insurance Act 18 of 2017 (the Act).
The response spoke to the determination of beneficiaries under the Act and specifically, in instances where employer discretion may have been exercised in the past. The PA’s view remains that employer discretion is not allowed and that a valid Beneficiary Nomination Form is required in order to avoid unapproved group life and funeral benefits having to be paid to the estate of a deceased member.
We believe that ASISA is still engaging with the FSCA and the PA on behalf of insurers regarding the impact on funeral benefit payments but in the interim, we cannot stress enough the importance of getting members to complete Beneficiary Nomination Forms for their life AND funeral cover.
These are sent out with every installation and review pack but should you need a copy please download one HERE.
Thank you and regards,
The TSA Team