KwaDukuza, KZN – Capitec Bank has issued an apology after a deeply distressing incident at its KwaDukuza branch, where a bereaved family brought in the body of their deceased relative in protest over a delayed funeral policy payout. The incident, which occurred on Wednesday morning shortly after the bank opened, brought the small rural town to a standstill and has left staff traumatised.
According to KwaDukuza police, the family were aggrieved that the bank was delaying the release of funds from a funeral policy held with the institution. "Reports indicate that the family had two policies with the bank for their grandmother; one was paid out, and the second was pending verification due to an unclear funeral parlour stamp," the police stated.
A bank employee, speaking on condition of anonymity, described the shocking scene. "They forced their way inside with the corpse in a body bag and placed it on the floor. Everybody was stunned and ran out. The bank had to be closed [after that]," the staff member recounted. The employee added that some colleagues have been referred for psychological assistance, while others have taken leave of absence. "It was a gruesome and shocking scene, one that will take a long time to be erased in our memories," they said.
The incident was captured on video and rapidly circulated on social media, sparking widespread debate and condemnation. The women involved have since been arrested and are expected to appear in court on Monday.
Khanyile Funeral Services, the parlour involved in transporting the body to the bank, has defended its actions, stating that they were acting on the explicit instructions of the family. Ndumiso Phakela, an employee of the funeral parlour, explained: "We were acting on the family’s instructions because the bank was not assisting them. This was despite [the family] submitting all the documents [the bank] had wanted. The only option that the family had was to submit the body as proof of death. We did as they asked."
Phakela further clarified that the funeral parlour was assisting the family with the funeral arrangements, which were scheduled for Saturday. "They were going to pay for the services which we were rendering. The bank was unduly refusing to pay out the policy despite having been supplied with all the documents they had required. We were only assisting to accelerate the claim," he said.
Capitec Bank has issued a statement expressing their condolences and apologising for the distress caused. "We extend our sincere condolences to the family during what is clearly an incredibly difficult and emotional time. We understand the sensitivity of the circumstances and deeply apologise to those affected," the statement read. "We recognise the impact this situation has had on those involved, as well as on our employees and the broader community. The branch has been closed while we manage the matter, and we are providing the necessary support to all affected parties."
This is not the first time the Capitec bank in KwaDukuza has been at the centre of such a dispute. In July, a similar incident occurred when another aggrieved family, also fighting for the release of funeral policy funds, stormed the branch with a coffin. These incidents highlight a growing frustration and desperation amongst families struggling to access funds during times of bereavement.
Such disputes over funeral policy payouts are not uncommon in South Africa, where funeral insurance is a significant industry. A 2022 report by the Financial Sector Conduct Authority (FSCA) highlighted concerns about delays in payouts and complex claims processes within the funeral insurance sector. The FSCA has been working to improve consumer protection and ensure fair treatment by funeral insurance providers.
The incident at Capitec bank underscores the need for greater transparency and efficiency in the processing of funeral policy claims, as well as improved communication and support for bereaved families during their time of need. The long-term effects of such incidents on the mental health of bank staff and the wider community also warrant serious consideration.
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