Bakgwadiba Financial Services (BFU)
Funeral Pillar – Terms and Conditions
1. Definitions
In these Terms and Conditions, unless the context indicates otherwise:
- “BFU” means Bakgwadiba Financial Services, a registered service provider operating throughout Limpopo Province, with its Head Office located in Giyani.
- “Funeral Pillar” refers to the funeral plan, scheme, or membership administered by BFU, providing funeral-related benefits and services.
- “Member” means any individual accepted into the Funeral Pillar and making regular contributions.
- “Beneficiary” refers to the person(s) nominated by the Member to receive benefits in the event of the Member’s death.
- “Contribution” means the monthly or periodic payment made by the Member to maintain coverage.
- “Waiting Period” refers to the initial period during which certain claims are limited or excluded.
- “Claim Event” means the death of a Member or an eligible covered person.
- “Effective Date” means the date BFU accepts the application and receives the first contribution.
2. Acceptance and Commencement
- Application: A person becomes a Member after completing the required application form, submitting necessary documentation, and agreeing to these Terms and Conditions.
- Acceptance: BFU reserves the right to accept or reject any application, or to impose special conditions.
- Commencement: Cover becomes active once BFU confirms acceptance and the first contribution has been received.
- Waiting Period:
- Natural death: subject to a waiting period of 6 months (unless otherwise specified in writing).
- Accidental death: covered immediately upon acceptance.
3. Contributions
- Payment Frequency: Contributions are payable monthly in advance or as otherwise agreed with BFU.
- Grace Period: A 30-day grace period applies for late payments.
- Non-Payment: If contributions are not received after the grace period, cover may lapse or be suspended.
- Reinstatement: Lapsed memberships may be reinstated at BFU’s discretion after full payment of arrears and subject to a new waiting period.
- Adjustments: BFU may review and adjust contribution amounts annually to account for inflation, claims experience, or regulatory changes, with 30 days’ written notice to Members.
4. Benefits and Claims
- Benefit Entitlement: Upon a valid claim, BFU will pay the agreed funeral benefit amount or provide equivalent funeral services as per the Member’s selected plan.
- Claim Notification: Claims must be submitted within 3 months of the death event.
- Required Documentation:
- Certified copy of the death certificate
- Copy of the Member’s and Beneficiary’s ID
- DHA-1663 form (Notification of Death)
- Proof of relationship or beneficiary nomination
- Police report (if death was accidental or unnatural)
- Processing Time: Once all valid documentation is received, BFU will process and pay approved claims within 48 hours.
- Payment Method: Benefits are paid via electronic transfer to the verified Beneficiary’s account or through direct funeral service provision, depending on the Member’s plan.
5. Exclusions
BFU shall not be liable for any claim resulting from:
- Death due to suicide within the first 12 months of membership.
- Participation in criminal acts, riots, war, terrorism, or insurrection.
- Death caused by intoxication, drug or substance abuse, or self-inflicted injury.
- Undisclosed or pre-existing medical conditions during the waiting period.
- Death occurring before policy commencement or first payment.
- Fraudulent or misleading information provided by the Member or claimant.
6. Cancellation, Suspension, and Termination
- Cooling-Off Period: A Member may cancel within 31 days of joining and receive a refund of contributions paid, provided no claim has been made.
- Voluntary Cancellation: A Member may cancel by giving BFU 30 days’ written notice. No refund of contributions will be made once cover has commenced.
- Non-Payment: Non-payment of contributions beyond the grace period will result in automatic suspension or termination of cover.
- Provider Termination: BFU reserves the right to terminate membership for fraud, non-disclosure, or breach of these Terms.
- Automatic Termination: Cover ends upon the Member’s death or when the Member reaches the maximum eligible age, if applicable.
7. Amendments
BFU reserves the right to modify these Terms and Conditions, benefits, or contribution rates at any time. Any changes will be communicated in writing to Members at least 30 days before taking effect.
8. Misrepresentation and Fraud
If a Member provides false, incomplete, or misleading information, or submits a fraudulent claim, BFU reserves the right to:
- Reject the claim;
- Cancel the membership;
- Forfeit all contributions paid; and
- Take legal action where appropriate.
9. Complaints and Disputes
- Internal Resolution: Members may submit complaints or disputes directly to BFU for internal review and resolution.
- Escalation: If the issue is not resolved, it may be referred to the Long-term Insurance Ombudsman or other relevant regulatory authority.
- Legal Proceedings: Disputes that cannot be resolved amicably shall be handled in accordance with South African law. Each party bears its own costs unless otherwise directed by the court.
10. Data Privacy and POPIA Compliance
- BFU collects and processes personal data in compliance with the Protection of Personal Information Act (POPIA).
- Members consent to the collection, use, and secure storage of their personal data for policy management and claims purposes.
- Information may be shared only with authorized third parties (such as reinsurers, service providers, and regulators) where necessary and lawful.
- BFU shall take all reasonable technical and organizational measures to protect Members’ data against unauthorized access or misuse.
11. Governing Law
These Terms and Conditions shall be governed and interpreted in accordance with the laws of the Republic of South Africa. Jurisdiction shall rest with the competent courts within the Republic.
12. General Provisions
- Notices: All official communication must be in writing and sent by hand, email, SMS, or registered post to the last known address of each party.
- Severability: If any clause of these Terms is found invalid, the remaining provisions shall continue to apply.
- No Waiver: Failure by BFU to enforce any right does not constitute a waiver of that right.
- Assignment: Membership or benefits may not be transferred or assigned without written consent from BFU.
- Entire Agreement: These Terms, together with the Member’s application and benefit schedule, form the complete agreement between BFU and the Member.
Contact Information
Bakgwadiba Financial Services (BFU)
📍 Head Office: Head office Stand No 3065A Giyani 0826
📞 Phone: 015 812 3667
📧 Email: info@bakgwadiba.co.za
🌐 Website: https://bakgwadiba.co.za