Accused in Durban court for faking death for insurance

TWO accused are expected to appear in the Durban Regional Court for insurance fraud.

It is alleged that a policyholder, with the beneficiary, faked his death to claim the life insurance.

Directorate for Priority Crime Investigations (Hawks) spokesperson Captain Simphiwe Mhlongo said the insurance fraud incident took place in Durban.

Mhlongo said it was alleged that the 33-year-old suspect applied for R6.5 million life cover with one of the insurance companies in February 2020.

“Three months later, the 45-yearold beneficiary submitted a claim alleging that the insured person is dead,” he said.

However, Mhlongo said the insurance company “smelt a rat” and investigated the matter.

“It was discovered that the supposed departed person was alive, and a case of fraud was reported at Berea police station,” he said.

He said the case docket was allocated to the Hawks from the Durban Serious Commercial Crime Investigation team for further handling. Mhlongo said both suspects were served with summons on May 10.

According to statistics for 2021, released this week by the Association for Savings and Investment South Africa (Asisa), life insurers detected 4 287 fraudulent and dishonest claims worth R787.6 million across all lines of risk business.

The association said funeral insurance attracted the highest incidence of fraud and dishonesty, followed by death cover, disability cover, hospital cash plans and retrenchment benefit cover. Megan Govender, convenor of the Asisa Forensics Standing Committee, attributed the surge in exposed fraudulent and dishonest claims to the deployment of sophisticated detection mechanisms to stop fraud.