Funeral policy claim declined: Icebolethu Group cites criminal activity exclusion
Icebolethu Group has defended its decision to decline a funeral policy claim, citing reports from authorities that indicate involvement in criminal activity at the time of death. The funeral provider explains how policy exclusions for unlawful activities guided their decision, despite acknowledging the emotional impact on the bereaved family.
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Icebolethu Group has defended and explained its decision for repudiating a funeral policy claim following a public backlash after the death of a dependant, emphasising that the decision was guided by policy terms and information contained in official reports.
In a statement, the company confirmed that the claim was submitted under a policy held by a policyholder (whose name is being withheld). Icebolethu said it had conveyed its condolences to the family and acknowledged the distress that can arise from claim outcomes during periods of bereavement.
According to the group, the claim was assessed in line with standard procedures and referred to its underwriter after information was obtained from relevant authorities, including the South African Police Service (SAPS) and the Independent Police Investigative Directorate (IPID).
Icebolethu said the official reports received by the underwriter indicated that, at the time of the incident, the insured person was allegedly linked to criminal activity.
The reports allege that he was driving a vehicle connected to a kidnapping investigation, in which a person found in the boot of the vehicle was identified as the complainant.
The company further stated that the reports indicate that when law enforcement officers approached the vehicle, its occupants allegedly fired shots, leading to a police response during which the insured person sustained fatal injuries.
Icebolethu stressed that funeral policy terms exclude claims arising from involvement in unlawful activity, as determined through official investigations. The group noted that these exclusions are consistent with industry underwriting guidelines and relevant Ombudsman rulings.
“While we recognise the emotional impact of such decisions, claim outcomes are determined strictly by policy provisions, verified information and applicable legal requirements,” the statement said.
Icebolethu Group added that it remains committed to ethical conduct, transparency and responsible underwriting, while continuing to serve communities with dignity and respect.
The policyholder's family had not responded to Icobelethu's statement at the time of going to print. The funeral parlour's decision was received with mixed reaction on social media with some commending its strict stance on alleged crime while others said the decision was unfair to funeral policyholders who are unaware of their family members' activities.