R1bn in life insurance rip-offs

Gerhard Joubert, CE of the LOA, said material non-disclosure and misrepresentation were the most common reasons claims were fraudulent. A report on the FIN24 site says life companies have also clamped down on cases involving criminal intent and fraudulent documentation, with a drastic decrease from 1 710 cases worth R79m in 2003 to 459 claims worth R21m last year. ‘Heightened awareness ... on the part of claims assessors and forensic divisions are the likely reasons for this successful reduction in fraud,’ says Joubert. Geographically, the highest number of fraudulent claims were submitted in KwaZulu-Natal, followed by Gauteng and then the Western Cape. Full report on FIN24 site