By Ragheema Mclean
In light of growing concerns within the local community regarding the legalities and reliability of informal funeral policies, known as “Kifayat Klops,” VOC Breakfast recently featured a discussion with legal expert Whalied Said from Said Attorneys.
The conversation shed light on the complexities of these policies, often operated by small, unregistered companies.
Said cautioned individuals about the informal nature of these policies, noting that it is usually run by small-scale companies, some of which are not registered with the Financial Services Board (FSB).
This lack of registration raises concerns about the financial stability and legality of these services.
“It’s very tricky because when you’re dealing with funeral policies in the form of Kifayat Klops, it’s often a policy by a small company that sometimes is not even registered with the Financial Services Board, and it’s not financially viable to do so either due to the small scale of how they operate,” Said explained.
“The policy structure also differs from provider to provider.”
With Islamic funeral expenses in mind, Said emphasized the importance of carefully assessing the legitimacy and sustainability of Kifayat Klops before signing up.
“This is why people have to be careful when joining a burial policy. You have to look at several factors before joining: how much experience do the people have, what do they offer, and how much are you paying?”
Said highlighted a common scenario in which some individuals who had been part of a policy for only a few months had their entire Janazah (Funeral) covered, despite not having contributed the full costs.
On the other hand, others who had contributed to the policy for over 20 years were paid only the cost of the funeral, despite their contributions far exceeding the necessary expenses.
He advised the community to thoroughly understand the terms, conditions, and benefits of any funeral policy they consider joining, stressing the importance of knowing both the obligations of the policyholders and the provider.
“If you are signing up for a policy or plan, make sure to fully understand the terms and conditions and the benefits of the policy, the shortcomings, and what their obligations are at the time of the Janazah (funeral),” Said urged.
To avoid potential pitfalls, Said recommended consulting several providers to make an informed decision when choosing a policy.
Listen to the full interview below:
VOC News
Photo: VOCfm/Stockfile
