NXUBA, Eastern Cape — Residents of Nxuba, formerly known as Cradock, in the Eastern Cape are growing increasingly alarmed by a rise in suspected insurance fraud killings, with community members reporting cases involving family and acquaintances targeted for policy payouts.
Bukeka Ngumbela lost her mother in 2022 in what she strongly suspects was an insurance fraud killing. Her mother was last seen at a local pub and never returned home. After an extensive search, she was found dead, and an autopsy revealed broken ribs, indicating foul play. Those last seen with her have denied any wrongdoing, but witnesses reportedly placed one individual with her throughout the day.
Three years later, Zukiswa Mayedwa experienced a similar tragedy when her cousin was stabbed to death by an unknown person, with no arrests made at the time. She believes the incident may be linked to insurance claims. Mayedwa described receiving a call one November morning and rushing to the scene, where she found her cousin’s body lying in bed, half-naked and showing signs of rape.
The possibility of insurance-related murders has angered residents of Lingal Township, leading to the formation of the anti-crime NPO Amadoda Elali. Members of the group say enough is enough and describe the situation as organised crime involving criminal cartels operating in groups.
Andile Mlangeni, chairperson of Amadoda Elali, said: “It’s very big because it has got criminal cartels and also they are in groups, many groups of them and it’s they don’t even ashamed of it they do it live in front of the people and people are scared to come out and speak about it… we stand up said it won’t happen in our name and we are watching.”
Funeral directors have also voiced concerns, noting that the crime complicates funeral proceedings and disadvantages families. They explained that in some cases one person may be insured by multiple family members, with each taking out several funeral policies. When claims are made, investigating officers may prevent the signing of accident reports, delaying or blocking payouts.
The Eastern Cape has been flagged as one of the provinces with a high number of insurance-related murders. Police are investigating over 60 cases linked to funeral and life insurance fraud, particularly in the Nelson Mandela Bay region. In most instances, family members and syndicates allegedly take out insurance policies on targeted individuals before killing them.
Police have confirmed arrests in connection with these insurance murders. A spokesperson said they are collaborating with insurance companies to ensure only one claim can be laid before the funeral, with other claims processed later for proper investigation to determine if they are linked to the crimes.
“We’re working together with insurance companies such that only one person can lay a claim before the funeral. Other claims can be processed later so that they can be investigated to see if they are not related to this crime of insurance killings,” the spokesperson said. “Police are working on it. We are going to corner it. As we have succeeded before, we’re going to succeed even this time around.”
Two suspected kingpins have been arrested in connection with the killings. One of them is alleged to be the beneficiary of more than one hundred active funeral policies that are under investigation.
One person has been sentenced to life imprisonment by the Nxuba Magistrates Court. Separately, one of the arrested individuals faces 34 charges of fraud after allegedly claiming against funeral policies amounting to nearly 2 million rand. She has appeared in the Nxuba Magistrates Court.
The community and authorities continue to grapple with the impact of these crimes, which are seen as exploiting vulnerable families for financial gain.
