Insurance fraud is rising sharply, and what the most common types of insurance fraud in South Africa?
Insurance fraud is becoming more frequent, more sophisticated and far more costly.
In 2023 alone, South African life insurers and investment companies detected 13,074 cases of fraud and dishonesty, a staggering 46% increase from the previous year’s 8.931 cases. Losses linked to these activities jumped by 128%, rising from R77.2 million in 2022 to R175.9 million in 2023, according to the Association for Savings and Investments South Africa (ASISA).
It is believed that “It’s no longer just individuals, inflating claims. There are syndicates, fake brokers, and even inside help in some cases.”
Do you suspect or have witnessed suspicious death of family members?
Limpopo police arrested suspects in connection with R10 million insurance murder, fraud, and money laundering case involving a former police officer, Rachel Kutumela and her family. The suspects fraudulently took life, accident and funeral insurance policies for their victims and cashed in the policies. Betrayal and greed are the most leading factors in chilling cases of insurance fraud-related murder.
In January 2022, a woman (Lerato Mahlangu) and her husband, Sibusiso, killed her former partner, Sibusiso Sithebe, with whom she shared a minor child. She placed Sibusiso’s wedding ring on Sithebe’s finger, dressed him in Sibusiso’s clothing, and burned the body inside the house. Lerato submitted three claims for insurance policies taken out in her husband’s name with Old Mutual, where she worked as sales consultant. The claims totaled R575 000 – R500 000 in life cover, a R50 000 death benefit, and a funeral cover of R25 000. The Mahlangu’s pleaded not guilty to the charges and were eventually convicted and sentenced to life imprisonment.
It is believed that more than 80% of these fraudulent activities by their very nature go undetected and this was just the tip of the in-ice bag.
What are the other types of insurance fraud?
- Auto insurance fraud
- Health insurance frauds.
- Workers’ compensation insurance.
- Corporate and investment fraud.
- Pension fraud.
- Property registration fraud
- Road Accident Fund
- Vehicle resting centres
- Tax fraud
- The list goes on.
What to do?
Get in touch with experienced forensic investigators and help safeguard your family, your future and businesses.
For more information: info@mctg-consulting.co.za – Tel: 011 367 0636
