Members of the Botswana Sectors of Educators Trade Union (BOSETU) have been left in the dark after the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) announced that it has cancelled licence for the union’s funeral service company.
The Monitor has learnt that NBFIRA cancelled the BOFUS Insurance brokers licence on February 24, 2021. This has not gone down well with some members of BOSETU who believe that the union has not communicated to them how they are going to solve the matter since they are still paying a monthly premiums for the funeral cover without fail.
“Members have been left in the lurch. Even up to this morning, no explanation whatsoever. They have insured their families and property. Imagine if a member has insured family members at BOFUS only. This is not fair to members at all. The union could have issued a memorandum to the members before NBFIRA wrote a letter to them or the public on what is happening, and how the problem is going to be rectified. We cannot keep on asking questions without proper answers being given,” the concerned member said.
Another BOSETU concerned member said the union leaders have been in meetings in and out, but they are failing to address them on what they should do temporarily because some have already put claims as they lost loved ones.
“If indeed BOFUS has failed to meet certain requirements needed by NBFIRA, then there is a problem. Members have to know what those requirements are and what made BOFUS fail to meet them. This is our scheme
A letter written by NBFIRA chief executive officer, Oduetse Motshidisi reads: “Please note that the effect of the cancellation is that BOFUS is no longer permitted to offer any insurance services to members of the public. Existing clients of BOFUS are advised to deal directly with their insurance companies.”
However, BOFUS chairperson, Mogomotsi Motshegwa confirmed that they had a problem with the renewal of their licence because they submitted other required papers late.
“Our services to our members have not stopped and I want to assure them to stop panicking. We submitted our papers five days after the deadline and we are still in talks with NBFIRA. I cannot disclose some of the things or issues that we are still discussing. Some of our members understand because we have started to communicate with them about what is going on. We believe that BOFUS will start operating as soon as negotiations are done,” Motshegwa said. The purpose of BOFUS insurance was that members will enjoy improved benefits to their dependents particularly parents and extended family members. The move to underwrite would provide the BOSETU funeral scheme business the opportunity to now release accumulated funds for other investment prospects.