Don’t have your Nedbank ID yet?
Nedbank ID single sign-on gives you full digital access to Nedbank’s banking and lifestyle products and services on the Money app or Online Banking.
Log in
Log in to Online Banking or another one of our secured services.
Bank how and when you choose to, with the low fees or extra benefits you want.
Shop online or instore and earn rewards for it, with up to 55 days interest-free credit.
Buy foreign banknotes, transfer funds or shop globally with a travel card.
Great interest rates, with great flexibility and access to your money when you need it.
Personalised interest rates for affordable loans from R2,000 to R300,000.
Loan up to 100% of the property value or up to 105% if you are a first-time home buyer.
Choose a plan for yourself, family or build your own cover to suit your needs.
Get cover for your car, building, house contents, valuables and more.
Cover your bond, credit card, overdraft, loan and car repayments.
Choose a plan for yourself, family or build your own cover to suit your needs.
Take the right steps to achieve your financial goals with expert financial planning.
Plan for everything you own and owe, so your estate is in order when you’re gone.
Accounts
-
Everyday banking Safety, convenience and rewards
-
Youth banking For under 16s, or under 25s
-
Accounts -
Digital wallet Your phone is your bank account
-
Private Wealth The globally integrated account
-
Goal saving Easy access to interest earned
Credit cards
Digital banking
Switch to Nedbank
Fraud awareness
Forex
Rewards
Accounts
-
On demand Money available at any time
-
In 24 hours Cash in your hand the next day
-
In 32 days Funds ready within a month
-
End of term Investments left until maturity
Investment services
Share trading
Personal loans
Home loans
Student loans
Overdrafts
Vehicle finance
Solar finance
Life cover
Funeral cover
Short term insurance
Credit Life
Travel insurance
Is your business covered?
Secure Investments
Financial planning
Estate, wills & trust services
Nedbank Private Wealth
Speak to a financial adviser
Blog
Talk to us
Find us
- Login & Register
- Online Banking
- Online Share Trading
- NetBank Business
- NedFleet
- Nedbank Greenbacks
- Nedgroup Investments
- Nedbank ID
- Bank
- Accounts
- Credit cards
- Digital banking
- Switch to Nedbank
- Fraud awareness
- Forex
- Rewards
- Explore Bank
- Accounts
- Everyday banking
- Youth banking
- Accounts
- Digital wallet
- Private Wealth
- Goal saving
- See all accounts
- Get help choosing
- Family Banking
- Refugees and asylum seekers
- FAQ
- How-to guides
- Everyday banking
- MiGoals Premium
- MiGoals Plus
- MiGoals
- Discontinued accounts
- Youth banking
- Nedbank4Me
- Digital wallet
- MobiMoney
- Private Wealth
- Private Wealth Bundle
- Goal saving
- MyPocket
- American Express
- Amex Gold
- Amex Platinum
- Digital banking
- Switch to Nedbank
- Fraud awareness
- Forex
- Send and receive
- Rewards
- Save & Invest
- Accounts
- Investment services
- Share trading
- Explore Save & Invest
- On demand
- Club
- Money Market
- Stokvel
- In 24 hours
- JustInvest
- PlatinumInvest
- Tax-free Savings
- MoneyTrader
- EasyAccess Fixed Deposit
- PrimeSelect
- In 32 days
- Electronic 32Day Notice
- 32Day Notice
- End of term
- Tax-free Fixed Deposit
- Electronic Fixed Deposit
- Electronic Optimum Plus
- Platinum Fixed Deposit
- Fixed Deposit
- OptimumPlus
- Investment services
- Share trading
- Borrow
- Personal loans
- Home loans
- Student loans
- Overdrafts
- Vehicle finance
- Solar finance
- Explore Borrow
- Personal loans
- Consolidation loan
- Secondhand car loan
- Home improvement loan
- Exclusive short-term loan offers
- Explore loans
- FAQ
- How to guides
- Consolidation loan
- Secondhand car loan
- Home improvement loan
- Exclusive short-term loan offers
- Home loans
- Building loan
- Switching home loan
- Repossessed properties
- Start your home buying journey
- Solar-energy Finance
- Earn R29,600 p/m or less? See offer
- HomeVision extra funds
- Home-buying Toolkit
- Managing your home loan
- Explore home loans
- FAQ
- How to guides
- Track application
- Building loan
- Switching home loan
- Repossessed properties
- Start your home buying journey
- Solar-energy Finance
- Earn R29,600 p/m or less? See offer
- HomeVision extra funds
- Home-buying Toolkit
- Managing your home loan
- Student loans
- Explore student loans
- Overdrafts
- Vehicle finance
- Solar finance
- Insure
- Life cover
- Funeral cover
- Short term insurance
- Credit Life
- Travel insurance
- Is your business covered?
- Secure Investments
- Explore Insure
- Life cover
- Get a call back
- Explore MyCover life
- Funeral cover
- Individual R10,000
- Individual R30,000
- Family Cover
- Build your own cover
- Get a call back
- Explore MyCover Funeral
- Individual R10,000
- Individual R30,000
- Family Cover
- Build your own cover
- Short term insurance
- Vehicle insurance
- Building insurance
- House contents insurance
- Valuables insurance
- Get a call back
- Explore MyCover short term insurance
- Vehicle insurance
- Building insurance
- House contents insurance
- Valuables insurance
- Credit Life
- Home loan credit life
- MFC Vehicle Finance Assurance
- Overdraft Assurance
- Balance Protection Plan
- Personal loan Assurance
- Get a call back
- Explore credit life
- Home loan credit life
- MFC Vehicle Finance Assurance
- Overdraft Assurance
- Balance Protection Plan
- Personal loan Assurance
- Travel insurance
- Is your business covered?
- Secure Investments
- Guaranteed Growth Plan
- Guaranteed Income Plan
- Get a call back
- Explore MyCover Funeral
- Guaranteed Growth Plan
- Guaranteed Income Plan
- Plan
- Financial planning
- Estate, wills & trust services
- Nedbank Private Wealth
- Speak to a financial adviser
- Explore Plan
- Financial planning
- Investment planning
- Insurance planning
- Give
- Retirement planning
- Investment planning
- Insurance planning
- Give
- Retirement planning
- Estate, wills & trust services
- Will drafting
- Ensure your estate is managed by an executor | Nedbank
- Trust services
- Financial accounting
- Tax services
- Leave the admin of your estate to us, and not to your loved ones | Nedbank
- Will drafting
- Ensure your estate is managed by an executor | Nedbank
- Trust services
- Financial accounting
- Tax services
- Leave the admin of your estate to us, and not to your loved ones | Nedbank
- Nedbank Private Wealth
- Speak to a financial adviser
- Learn
- Blog
- Explore Learn
- Blog
- Contact us
- Talk to us
- Find us
- Explore Contact us
- Talk to us
- Find us
Insurance fraud can cost you in more ways than one
Insurance fraud can cost you in more ways than one
Staff writer
Posted 27/02/2023 Updated 14/03/2023 3 mins
Insurance fraud is on the rise, but can result in a hefty fine or time in jail.
R787.6 million – that’s the value of life insurance fraud detected in South Africa in 2021. According to the Association for Savings and Investment South Africa (ASISA), life insurers picked up 4,287 fraudulent and dishonest claims last year. They say that this is a notable increase from 2020, when 3,500 cases totalling R587.3 million were discovered.
But it’s not just the life insurance sector that’s being plagued by fraud – criminals are targeting all kinds of insurance. Fraudsters are claiming funeral policy pay-outs for deceased relatives who don’t exist. Car insurers are facing rising numbers of claims for theft and damages that don’t occur – there’s no end to the scams. Common forms of fraudulent activity that costs the South African insurance industry millions each year include:
Inflating or padding an insurance claim – claiming for a stolen R100,000 watch, for example, but inflating the value to R200,000 without proof that it was worth that amount.
Giving inaccurate information in an insurance claim – not being honest about the facts of the incident that led to the loss or damage being claimed for.
Submitting false insurance claims – claiming for loss or damage that never took place, when the claimant makes up a fictitious burglary, mugging or hijacking, for example.
Creative fraud techniques being used
Scam artists are getting creative when it comes to ripping off insurers. In May 2022, a BusinessTech report revealed that a South African nurse had tried to con an insurer out of a severe disability benefits pay-out. She had claimed that she was pricked by a stray needle at work, leading to her contracting HIV. She submitted her claim and a test indicating that she’d contracted HIV, even though she took anti-retroviral drugs soon after the needle incident.
‘The life insurance company’s forensic department investigated the claim and found several inconsistencies and no records of the client being treated for HIV,’ the report noted.
The insurance company asked the nurse to go for a further test with an independent lab. But she then admitted that she hadn’t submitted her own blood for testing – she had used the blood of an HIV-infected person instead. Her insurance provider reported her fraudulent claim to the police. After legal proceedings, she was sentenced to 5 years in jail, suspended for 5 years, and had to pay a R10,000 fine or face 6 months’ imprisonment. If the insurance company hadn’t performed a forensic investigation of this claim, it would have lost R1 million to insurance fraud.
As an honest policyholder, why should you have to face rising premiums because of insurance fraud?
The reality is that fraudulent claims can get through the system, and fraudsters get away with millions. Insurers must then raise their premiums for life, car, home, and niche policies to ensure that there’s enough cash in the kitty to pay legitimate claims, so insurance fraud adds to the cost of everyone’s insurance.
Why you shouldn’t attempt insurance fraud
Whether it’s long-term (life) or short-term (vehicle and asset) insurance, stay clear of trying to submit fraudulent insurance claims. Insurers use advanced methods to detect fraud and it’s likely that you will be caught. Forensic investigation methods can unearth inaccuracies, so whenever you submit a claim it’s best to be completely honest.
If you ignore this advice, you could face any, or all, of the following consequences:
1. No pay-out at all
If you pad your claim by increasing the value or number of items lost and your insurer finds out, they can choose to reject your claim completely and you won’t get a cent. Even if you genuinely lost an asset, trying to claim for more than it was worth could leave you without any pay-out at all to replace it.
2. No one will insure you in future
Some insurers also blacklist you if you commit insurance fraud. They won’t grant you a policy in future, and when other insurers find out that you’re flagged as a fraudster, they won’t insure you either. Get caught making a false claim today on something minor like a smartphone, and you could find yourself with no insurance options later in life on high-value assets like your house or car.
3. You can be fined and/or sent to prison
The key fact to remember about insurance fraud is that it’s a serious crime. If your insurer finds out that you are trying to lodge a false claim, a padded claim, or one in which you’ve lied about specific details of the insured event, they will report you to the South African Police Service.
You could be arrested and prosecuted – with penalties on conviction that include jail time, fines, or both. Even insurance brokers have gone to jail for insurance fraud, so don’t convince yourself that you’re smart enough to beat the system. Make sure you have enough insurance to cover all your risks, report any loss or damage honestly, and you’ll have nothing to worry about.
As an honest policyholder, why should you have to face rising premiums because of insurance fraud? Stamping it out is in everyone’s best interest. If you suspect insurance fraud, contact the Insurance Crime Bureau for further assistance.
For trustworthy life insurance and vehicle and asset protection, you can rely on Nedbank Insurance.