Which statement best describes the Compensation Fund Scheme?

• A. A program to fund regulatory staff.
• B. A program to reimburse victims of licensee violations.
• C. A fund used for procurement of materials.
• D. A reserve for interest earnings.

Answer: (C)

The key idea here is that the Compensation Fund Scheme is about ensuring the ongoing ability to obtain the materials needed to deliver cemetery and funeral services. It creates a dedicated pool to cover the procurement of essential supplies—like caskets, urns, markers, and other materials—so licensees can carry out arrangements smoothly and reliably. This focus on securing practical resources for service delivery distinguishes it from funds meant for paying regulatory staff, reimbursing victims of licensee violations, or accumulating interest earnings. Those other purposes fall outside the intended use of this particular scheme, which centers on keeping material inputs available for proper service provision.