Insurance fraud in SA has surged in last 2 years - Asisa

The case of Nomia Rosemary Ndlovu, who has been accused of killing her relatives and claiming over R1.4 million in insurance money, has further highlighted how prevalent insurance fraud is in the country.

Nomia Rosemary Ndlovu continued her testimony in the Palm Ridge Magistrate Court on 15 September 2021. She is accused of killing several of her family members and boyfriend and plotting the murder of her sister and five kids. Picture: Xanderleigh Dookey Makhaza/Eyewitness News

JOHANNESBURG - Convenor of the Asisa forensics standing committee on Thursday said that insurance fraud had seen an upsurge in the past two years.

The case of Nomia Rosemary Ndlovu, who has been accused of killing her relatives and claiming over R1.4 million in insurance money, has further highlighted how prevalent insurance fraud is in the country.

The committee said that funeral insurance has always been an easy target for fraudsters, because these policies do not require blood tests or medical examinations and are created to pay out quickly.

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Last month, South African life insurers reported 3,186 cases of fraudulent and dishonest claims amounting to over R5 million.

Questions have been raised about insurance claims, with a former police officer on trial for allegedly murdering and plotting to kill relatives to cash out life insurance and funeral policies.

Convenor of the Asisa forensics standing committee, Megan Govender, said that the increase in fraudulent cases was not surprising as people would do just about anything to get money.

“There’s been instances where people have picked up bodies at mortuaries and insure them. We’ve seen instances where individuals delay the registration of the death of an individual for the purpose of taking out some form of cover for them and claiming for that cover after the death,” Govender said.

Govender said even though insurers had put systems in place to ensure that fraud was stopped, the committee warned consumers to be vigilant with their personal information.

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