The Insurance Crime Bureau says there are ‘millions and millions’ of insurance policies taken out by genuinely concerned family members across South Africa, but there is also a very small percentage of fraudsters and psychopaths who take these policies with sinister motives.
Policewoman Rosemary Ndlovu orchestrated the deaths of her loved ones to cash in on insurance policies, and she is on trial on charges of allegedly plotting the death of her friend’s now ex-husband.
Ndlovu, currently serving six life sentences, last month appeared alongside co-accused Nomsa Mudau in the Kempton Park Magistrate’s Court in Gauteng.
Both Ndlovu and Mudau were police officers at the time.
They are accused of allegedly conspiring to kill Madau’s ex-husband, Justice Mudau in 2018 for insurance payouts.
On Thursday, reported that a Limpopo-based police officer was arrested after she allegedly went on a killing spree linked to insurance fraud.
National police spokesperson, Brigadier Athlenda Mathe, said the Sergeant was arrested on allegations that she was fraudulently benefiting from funeral, accidental and life policy covers from various banks and insurance companies.
“According to investigations, she (allegedly) started her killing spree in 2019. Her victims were known to her and were from destitute and disadvantaged background and some were disabled or mentally challenged.”
At least six people were allegedly murdered for the police officer to cash out the insurance policies.
Chief executive of the Insurance Crime Bureau, Garth de Klerk told broadcaster Newzroom Afrika that the insurance industry has a check and balances system that is able to red-flag instances where an individual suspiciously takes out insurance policies and makes claims which raise eyebrows within the vast industry.
“Normally there are checks and balances in place. It is relatively widespread, we are talking about millions and millions of policies that are in place. Last year, the life insurance industry paid out R500 billion in insurance claims,” said de Klerk.
“That is a lot of money. So, the percentage of fraud is incredibly small but when we see a case like this one again, it picks up a lot of media interest. It creates this whirlwind of activity and fear.
“I think people do not need to start looking at their husbands, wives and aunties and wondering if they have insurance policies out on them,” he said.
The Insurance Crime Bureau has appealed to community members to report cases where a trend is observed, of relatives dying when someone has taken out life insurance policies on them.
“Talk to each other as a community, do not sit back and say that is suspicious and not do anything about it. In hindsight, people often say, I thought that was suspicious. Rather be proactive, pick up the phone, talk to somebody and let’s work as a community,” said de Klerk.
Using the Rosemary Ndlovu case as an example, de Klerk said the insurance industry had not dropped the ball because the policewoman had an insured interest in the individuals.
“There is nothing incorrect in the insurance policies that she took out. It was not illegal for her to take out cover on her family. What was illegal was the act of murder. That is where the problem comes,” he said.
“The act of taking insurance is not illegal. I can take out insurance for my wife. I am not allowed to commit an act of murder in order to benefit from that insurance.”
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