The hits keep coming for Luvuyo Burial and Consulting (Pty) Ltd, with the FAIS Ombud issuing three more rulings in favour of policyholders this year.
The Khayelitsha-based funeral service provider has now faced eight determinations against it in 2025, with the latest cases highlighting repeated failures to honour valid funeral claims despite policyholders faithfully paying their premiums.
In each case, the Ombud ordered Luvuyo to settle the outstanding benefits with interest, citing breaches of the Policyholder Protection Rules (PPR) and the Treating Customers Fairly (TCF) principles.
The Financial Sector Conduct Authority suspended Luvuyo’s FSP licence on 14 April following referrals from the Ombud. Luvuyo was registered in 2014 and obtained its FSP licence in 2016.
Read: FSCA suspends FSP’s licence after third Ombud determination
Case 6: Claim rejected due to minor ID error
Nokuzola Mirriam Siswana had a funeral policy with Luvuyo since 17 January 2020 and added two family members in February 2021. When her uncle, Thembani Cecil Siswana, died on 30 March 2024, she submitted a claim for R10 000.
Luvuyo rejected the claim via SMS on 18 April 2024, citing an incorrectly recorded identity number. The company claimed that multiple messages had been sent to clients about correcting identity numbers, but it could not provide proof. The policy allowed clients six months to ensure their identity numbers were correct.
The Ombud found that only the last digit of the identity number was incorrect, and the age of the deceased was accurate. This error did not materially affect Luvuyo’s ability to assess the risk.
The Office ruled the claim valid and ordered Luvuyo to pay R10 000 with interest at 11.25% a year from the date of the determination until full payment.
Case 7: Claim unpaid despite acknowledgement
Philasande Ntloko, a policyholder since May 2020, submitted a R10 000 claim following the death of Letitia Thethiswa Ntloko in June 2024. Luvuyo acknowledged the claim and on 23 January 2025 agreed to pay R4 000 by 31 January and R6 000 at the end of February. Despite this, no payments were made.
The Ombud found that Luvuyo had failed to assess and settle the claim in accordance with Rule 2A.8.1 and Rule 2A.8.2 of the PPR, which require insurers to decide on claims within two business days and resolve disputes within 14 business days.
Luvuyo was ordered to pay the full R10 000 plus interest of 11.25%.
Case 8: Valid claim ignored
Mzuvuyile Theodore Mekuto lodged a complaint in November 2024 after Luvuyo failed to honour a R10 000 claim for the funeral of Patricia Mosia. Luvuyo did not dispute the claim and agreed in January 2025 to pay in four instalments of R2 500 from February to May. No payments were made.
The Ombud again ruled that Luvuyo must pay the full R10 000 plus interest at 11.25% a year from the date of the determination until the date of final payment.
Across all three cases, the Ombud highlighted repeated breaches of the PPR and TCF principles. Policyholders faced undue delays, partial payments, and unfulfilled promises, causing financial stress during periods of personal loss.
Earlier cases highlight repeated breaches
The Ombud’s earlier rulings against Luvuyo set the stage for the latest three determinations. In January, Xolisa Matoti was denied a R10 000 payout after Luvuyo claimed his premiums had doubled without his knowledge. The company said it had sent an SMS notification but could not provide proof.
The Ombud found Luvuyo in breach of Rule 15 of the PPR, which requires insurers to inform policyholders of premium increases and offer alternatives, and ordered the full payout.
Read: Burial society ordered to pay after failing to inform policyholder of premium hike
Two April rulings highlighted further delays and broken promises.
Maruna Ndeleni submitted a R20 000 claim following his wife’s death but received only R5 000 despite promised instalments. Nomathemba Oscar Jikwa’s two claims, totalling R20 000, were similarly underpaid: Luvuyo initially paid R2 500 and failed to settle the remainder. Both cases were found to violate Rules 2A.8.1 and 2A.8.2 of the PPR, which require claims to be assessed within two business days and finalised within 14.
In June, two more policyholders were affected. Pumelele Mantingani received only R5 000 of a R10 000 claim for her uncle’s funeral, while Neliswa Kondile was paid just R3 000 of her R10 000 claim for her mother-in-law’s funeral after months of follow-up. The Ombud again found Luvuyo contractually liable and in breach of both PPR rules and the TCF principles.
Read: More FAIS Ombud determinations against funeral provider
Across all eight cases, the themes are the same: promises made, then broken; claims acknowledged, then ignored; and grieving families left financially exposed.
Consumer advocates argue that the Ombud’s findings point to a deeper problem in the burial society sector, where vulnerable households are often unprotected against unscrupulous providers.
For Luvuyo, the regulatory consequences are now severe. With its licence suspended and the FSCA probing further enforcement, the company faces a reckoning over its practices.
But for the affected families, the damage has already been done.
