The South African Police Service (SAPS) has warned of a disturbing rise in insurance-related crimes in which individuals and organised syndicates allegedly arrange the deaths of insured people to claim payouts.
Police spokesperson Athlenda Mathe said investigators are increasingly encountering cases where suspects take out life or funeral policies on relatives or acquaintances and later orchestrate their deaths for financial gain.
“For the love of money, family members will plot your death,” Mathe said.
The warning follows the arrest of six suspects in Polokwane on Tuesday during an investigation into an alleged insurance fraud scheme involving former police sergeant Rachel Kutumela.
Kutumela, her sister Anna Shokane and her niece Flora Shokane face six counts of murder, 17 counts of fraud, money laundering and defeating the ends of justice. Kutumela’s brother, Leshweng Shokane, was arrested later in connection with the case.
Police allege the group killed relatives in order to claim insurance payouts worth about R10 million.
During the operation, officers also arrested Kutumela’s husband, two of her brothers, a sangoma and another relative. Investigators believe the scheme may be linked to at least 10 victims and say the arrests may have prevented further deaths. Police are still searching for one more suspect.
SAPS says similar insurance-related murder cases have emerged across the country.
In 2023, Agnes Setshwantsho was arrested in Mahikeng for allegedly killing several family members to claim insurance benefits. She is accused of murdering her son in July 2023, her husband in 2016 and two daughters in 2015 and 2005. Investigators believe she had taken out insurance policies on about 40 extended family members.
In another case in Cape Town, siblings Linda Mbele and Sindiswa Mbele were arrested after allegedly orchestrating a fraudulent funeral policy linked to the murder of actor David Manuel. Manuel was shot outside his home in Gugulethu in October, and his friend Alfonso Fisher was also killed in the incident.
Authorities said the siblings altered policy details just four days before Manuel’s death and later claimed R110,000 from the policy despite not being related to him.
One of the country’s most well-known insurance murder cases involved former police officer Rosemary Ndlovu, who is serving six life sentences for orchestrating the murders of relatives to collect insurance payouts.
Mathe said police are expanding investigations into insurance-related crimes nationwide.
In the Eastern Cape alone, authorities are investigating 62 insurance fraud cases. “In one syndicate we identified 11 members linked to 18 murders. Two members were previously arrested for unrelated matters, and police are finalising the investigation,” Mathe said.
Police say syndicates are operating in areas including Motherwell, New Brighton, KwaNobuhle and KwaDesi. Investigators have linked one suspect to 14 cases, another to six murders and a third to eight cases.
Mathe said perpetrators often target vulnerable individuals and gain their trust to obtain identity documents and personal information.
“We urge communities to be cautious with personal information,” she said. “Family members can plan your death for the love of money.”
She added that criminals frequently target accidental death insurance policies because they offer immediate coverage and do not require waiting periods.
“Perpetrators often list the victim as the main member and themselves as the spouse, allowing them to collect double payments if the victim dies ‘accidentally’,” Mathe said.
