News Articles

Home Affairs helps foil insurance fraudsters

Source: Times Live, 20/01/2016


Thousands of fraudulent death and funeral insurance claims totalling
millions of rands were exposed by the Department of Home Affairs when
it gave access to its database to insurers.


Home Affairs Minister Malusi Gigaba said yesterday that the
department's partnership with the SA Banking Risk Information Centre
also prevented a R322-million monthly loss through identity
theft.


A memorandum of agreement between the department and life insurers
gives the insurers access to the National Population Register and the
ability to verify the personal details of policy claimants.


"The systems allow for [the detection of] irregularities that can
assist with fraud prevention and therefore has been instrumental in
the all-out fight against fraudulent insurance claims," said
Gigaba.


There were 7360 fraudulent death and funeral insurance claims in 2014,
for a total of R402.8-million.


There were 3551 reported instances of presentation to insurers of
fraudulent documents, or of misrepresentation in the same period.
These fraudulent claims amounted to R296.2-million.


An Association for Savings and Investments committee is establishing a
fraud-alert database.


The introduction of "smart" identity documents in partnership with
major banks will, according to Gigaba, also curb fraud, corruption and
related crimes.


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