FREQUENTLY ASKED QUESTIONS (‘FAQs’)
FUNERAL PLAN
1. Why is the Financial Services Commission, Mauritius (the ‘FSC Mauritius’) issuing an FAQ on Funeral Plan?
The FSC Mauritius is issuing this ‘FAQ on Funeral Plan’ following several requests received from members of the public enquiring as to whether the FSC Mauritius regulates Funeral Plans.
The FSC Mauritius wishes to inform the public that Funeral Plans, as currently being offered in Mauritius, do not fall under the definition of financial services. Therefore, Funeral Plans are not regulated and/or supervised by the FSC Mauritius.
2. What is a Funeral Plan?
A Funeral Plan is a method used for planning and paying in advance for a funeral.
Funeral Plans may be proposed under different names. Some Funeral Plans available on the market are known as ‘Memorial Service’, ‘Burial Plan’, ‘Funeral Scheme’, ‘Funeral Insurance Plan’ and ‘Life Celebrations’.
A Funeral Plan is a legally binding contract between the funeral service provider and the planholder. Generally, in the Funeral Plan, the funeral service provider undertakes to perform the funeral of the plan-holder upon his/her death, as per terms and conditions specified in the contract.
Payment for a Funeral Plan is usually made through a series of instalments.
3. Why do people opt for a Funeral Plan?
a. A Funeral Plan allows the person (plan-holder) to bring a personal touch to his own funeral with regards to the choice of hymns, coffin, and hearse amongst others.
b. By fixing the cost of funeral at the current price, the person (plan-holder) may avoid the increasing cost of funerals.
c. It brings peace of mind to the plan-holder who, having already catered for the
organisation of his funeral, relieves his family of stress and hassles upon his death.
4. What are the possible remedies, in the event that the services provided by the Funeral Service Provider are not satisfactory?
Some of the possible remedies may be as follows:
a. to refer to the Funeral Plan contract with regards to the Terms and Conditions (in terms of what has been agreed; avenues for claims if any);
b. to refer to the Laws of Contract;
c. the surviving spouse/ heirs to lodge a civil suit against the funeral service provider and/or seek legal advice; and
d. to liaise with the Police in case there is suspicion of any fraudulent activity or misleading information.
5. Are Funeral Service Providers licensed by FSC Mauritius?
The FSC Mauritius is the independent regulator for the Non-Bank Financial Services and Global Business sectors in Mauritius.
Funeral Plans, as currently offered in Mauritius, do not fall under the definition of financial services. Therefore, Funeral Plans are not licensed nor regulated/supervised by the FSC Mauritius.
Financial Services Commission
18 November 2014
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