The National Financial Ombud Scheme (NFO) is urging insurers to obtain proof of the life assured's informed consent before issuing funeral policies, in a bid to curb 'murder for insurance' cases.
The move is a safeguard to ensure that insurance policies are not bought without the insured’s knowledge.
The NFO continues to see cases alleging that a life insurance beneficiary may have played a role in the insured’s death, or that the passing occurred under suspicious circumstances, according to a report by FANews, which covers South Africa's insurance and financial services industry.
The Association for Savings and Investment South Africa has said that life insurers detected 38 murder-for-money cases in 2024, up from 14 cases identified in 2023.
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