South Africans Buying Bodies To Make False Insurance Claims


A report of the Association for Savings and Investment South Africa says South Africans are renting, and buying, bodies to falsely lay claim to funeral benefits.
Life insurers rejected 1,915 funeral claims worth R176.4 million in 2018, of which 1,127 were found to involve fraudulent documentation.
Another 156 fraudulent claims showed syndicate involvement – and in seven cases beneficiaries were found to have caused the death of the policyholder.
Funeral policies don’t require blood tests and medical examinations and are designed to pay out quickly when an insured family member dies.
“Unfortunately, this makes it tempting for criminals and dishonest individuals to take out funeral cover for people who do not exist with the intention of later submitting claims using death certificates issued for dead bodies rented or bought for the purpose of committing fraud,” Donovan Herman, convenor of the ASISA Claims Standing Committee, say.
If we allow fraudulent and dishonest claims, honest policyholders will ultimately end up footing the bill through higher premiums driven by untenable claims rates.”
Overall, South African life insurers detected 3,708 fraudulent and dishonest claims to the value of R1.06 billion in 2018 – and most of the fraudulent activity in 2018 took place in the funeral insurance space.
The 2018 fraudulent and dishonest claims statistics, released this week by ASISA, show that the total number of irregular claims was lower in 2018 than in 2017, but the claims value remained almost the same.
In 2017, life insurers detected 5,026 fraudulent and dishonest claims worth R1.13 billion.
Herman says life insurers owe it to honest policyholders to protect the integrity of the long-term insurance model by preventing fraud and dishonesty.
He added that while life insurers are frequently accused by the public of trying to avoid paying claims, the numbers tell a different story.
In 2018, life insurers paid 99.3% of claims made against fully underwritten individual life policies alone, to a value of R15.1 billion.


  1. Brian

    Insala ku south Africa yachila!!! Hope we don’t reach those levels.

  2. Kobus Du Plooy

    Its ashame where corruption has driven this country, and where it is goiing to end is even worse.
    Lets pray that those in charge of law and order wake up and put things in the right prospective to save this beautiful country for our children, and not be part of the history that showed how we destroyed it.
    Thats why we vote them in at goverment .

  3. Too bad


  4. crossby Hamoonga

    Too bad their

  5. Curtis

    Where are we heading to? I feel the solution is to check these foreigners in our nation,last time it was criminals it was robbers who where gunned down why all foreigners?

  6. Johannes Litwayi

    this is very bad.. i think a new law should be put in place in the insurance companies that will monitor all the process of claiming money

  7. d swag

    Fools reduce the price of food

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