Johannesburg - The government is planning to protect the country’s poorest people by stopping insurers from selling funeral cover to welfare recipients.
The companies that could be impacted include Sanlam, the biggest insurer based in South Africa, and Lion of Africa Assurance. They are among companies selling funeral cover that is paid for from welfare grants meant for children. Other companies sometimes draw money from social grants for other services, a practice which is illegal.
The government will replace private schemes with a state-run funeral plan, Minister for Social Development Bathabile Dlamini said in a speech to parliament on Wednesday.