Icebolethu Group defends refusal to pay claim for man killed in police shootout

Funeral services provider Icebolethu Group has come under public scrutiny after refusing to pay out a funeral policy claim on the grounds that the death occurred during alleged criminal activity.

The late Sbonelo Zaca, was killed in a shootout with KwaZulu-Natal (KZN) police.

In an official statement released on 1 January 2026, Icebolethu confirmed that the claim lodged under a policy held by Nozipho Philile Zaca had been declined.

The underwriter’s review, based on information obtained from the South African Police Service (SAPS) and the Independent Police Investigative Directorate (IPID), concluded that the deceased was allegedly involved in criminal activity at the time of his death.

According to police reports, he was driving a vehicle linked to an alleged kidnapping case when law enforcement officers approached him in KwaZulu-Natal. The occupants of the vehicle are reported to have opened fire, prompting a police response in which he was killed.

Authorities identified a person found in the boot of the vehicle as a victim in the alleged kidnapping.

Icebolethu Group emphasised that participation in illegal or criminal activity, whether proven or alleged, is a standard exclusion under its funeral policies, in line with underwriter guidelines and broader insurance industry norms.

Claims arising from deaths linked to criminal conduct are not covered, the company stated, adding: “Claims arising from such circumstances cannot be approved.”

The group noted that this exclusion is not unique to Icebolethu. Funeral and life insurance policies in South Africa routinely include clauses that exclude cover when the insured dies while engaged in unlawful acts, civil unrest or other dangerous conduct.

INDUSTRY PRACTICE

Typical industry exclusions include criminal acts, suicide (often within a waiting period), dangerous activities and policy lapse or non-disclosure of key information.

Industry data shows that policy exclusions and fraud account for a notable share of denied claims. In 2023, about 4.1% of death and funeral claims in South Africa were declined for reasons including criminal-related exclusions, non-disclosure and suicide clauses, according to statistics from the Association for Savings and Investment South Africa (ASISA).

PUBLIC REACTION

Since Icebolethu’s announcement, public reaction on social media has been mixed. Some have supported the insurer’s strict adherence to policy terms, arguing that underwriting rules exist to protect both providers and policyholders.

Others, however, say the decision places additional financial strain on grieving families and question whether exceptions should be considered.

Icebolethu Group has defended its decision, saying it is aligned with legal and contractual obligations and that claims assessments are conducted with transparency and fairness.