4 bust for R3m life insurance fraud

2013-02-04 11:35

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Durban - Four men were arrested in Durban for allegedly claiming a R3m insurance payout fraudulently, KwaZulu-Natal police said on Monday.

The men, linked to a local funeral parlour, were arrested on Saturday.

They allegedly took out life insurance for Themba Nene, whose family buried him in March 2011, at two insurance companies, spokesperson Captain Thulani Zwane said.

One of them allegedly posed as the deceased's brother.

The first company paid out a R3m insurance claim last year. The second claim had not been paid yet.

Death certificate

Police discovered the Nene family were unable to get a death certificate after the funeral parlour told them the deceased's identity document was missing.

The funeral parlour promised the family that once they had the identity document they would apply for a death certificate.

"On January 24 this year the Nene family got a visit from an employee of the funeral parlour who told them that the identity document had been found and that the death certificate was being processed."

The employee brought the death certificate and the identity document to the Nene family the following day.

"He brought something extra for the family, R15 000 cash. He told them the funeral parlour was thanking them for their patience since Themba's death."

The death certificate however indicated that the man died in September 2012.

They allegedly used the man's ID to take out life insurance policies and provided false information to the insurance companies.

The four men, aged between 34 and 66, were due to appear in the Durban Commercial Crimes Court on Monday on fraud charges.

- SAPA
Read more on:    durban
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