Some criminals smarter.
They open a fake funeral or life insurance policy. Then 6 months later they get their buddy in home affairs to issue a death certificate. To make it legit. They steal a dead body. Have a big funeral and bury the person. Then they go and claim for the life insurance.
Same setup with funeral plans.
Also when you have to pay out. You must make sure to pay to the right beneficiaries. This guy supposedly had 38 kids. So you have to find the first kid as he would be most senior in charge. But any life insurance without a will must then cater for the neediest of kids first (needing support). Ie age 0-18.
It can be a real headache. Due to the high cases of fraud. Ie some people with ure name and surname can claim for someone else which isnt related.
So payouts become more complex.
Dont always blame the insurer. They try to pay out fairly but if they pay wrong, they have to pay out again and suffer the losses which will affect their other policy holders.
So make sure you have a proper will set up. It helps them.
One of my friends in SA recently had a guy crash into her. The accident was 60/40 but more the guys fault. He was poor and couldnt afford to pay for her car to get fixed. So she claimed fault and her insurer will fix her car and his. Ie be a good samaritan. Not happy with this he is now sueing her for trauma and hospitilization fees, as well as for him being out of work because he hit her car. And he needs his car to get to work. She regrets not having said its her fault which would have not gotten his car fixed too.
It shows. The people in SA loves taking advantage of others.
This right here. Happens a lot. Funeral policy fraud and money laundering happens a lot more than you guys think.
Hence why government has implemented kyc and aml that all FSPs must, and I mean must, comply with. If you don't comply, there are heavy consequences. OM is one of the first insurers that the FSB and SARS are starting to enforce these legislations on to the same standard as they do banks.
I actually work at OM as a BA on these systems and rules, to enforce compliance.
My guess as to what happened here... The guys case is Hella complicated with many many many many beneficiaries and third party payees to perform KYC on. Compounded by a grieving family that doesn't have patience to give required documents and answer the questions. If it is one or two beneficiaries then it goes quick and simple, but with a lot... Eish
Consider also that any discrepancies between documents eg names don't perfectly match, address, contact details not up to date must be resolved first to the appropriate level of sure diligence.
These requirements are a total pita for everyone involved, but they are also the law. My job is to make the process as efficient as possible and to negotiate standardisation of rules across the organisation.
I can also assure you that OM managers are befok obsessed with giving clients the best possible experience, which makes my job very difficult.
I definitely sympathise with the family, very kak situation. Ultimately I blame fraudsters for creating the need for this.
Go ahead and AMA if you would like for some non sensational insight into why this stuff happens.
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