In this criminal case where the victims were targeted in order for insurance benefits to be claimed from funeral policies, the court said:
“We live in a country where the majority of the people live below the poverty line. The temptation to cover these people for funeral policies is rife for unscrupulous people. It is for that reason that a strong message must be sent to them that insurance companies created an industry where it is possible to give everyone a decent funeral. That industry has been highjacked by those who have no regard for human life and have turned it into an illicit money-making scheme. Those who participate in those criminal activities must face the full might of the law. The time has now come for the insurance companies to revisit their processes and introduce some safeguards to protect the unsuspecting public from those who are abusing these policies for financial gain.”
A challenge laid down by the courts for life insurers. Insurers have existing safeguards but should ask themselves if more could be done.
S v Seyisi (Sentence) (CC27/2024) [2024] ZAECMKHC 142 (18 November 2024)