Spokesperson Captain Thulani Zwane said they used a stolen identity document, belonging to Mandisa Mkhwebula, without her knowledge, to take out death cover.
“After nine months of paying monthly premiums, they declared her dead and prepared the necessary documents with home affairs, a funeral parlour and a doctor to enable them to claim,” Zwane said.
Three sisters, Zodwa Ngcobo, Thulile Madondo and Zandile Linda, and their two accomplices, Sibongiseni Thabethe and Brian Khumalo, were out on R2 500 bail each.
Thabethe, arrested in a pub in central Durban, and Khumalo, who was arrested in Pinetown, apparently provided most of the documentation used to commit the fraud.
The 47-year-old Isipingo doctor was alleged to have supplied the blank BI 1663 death notification form to the sisters.
“It is alleged that he sold blank BI 1663 to people who wanted to lodge fraudulent claims,” Zwane said.
The five people would appear before the Durban Commercial Crime Court on Tuesday, while the doctor would appear separately.