A South African family has been forced to drag their dead relative's corpse into an insurance company's office after the firm refused to pay out a funeral policy claim.

The incident was filmed in the office of the company Old Mutual in the eastern South African state of KwaZulu-Natal.

Watch the video above

"Family bring their dead family member after Old Mutual refused to pay their policy benefit," Twitter user White Man Confession said when posting the video.

"Old Mutual’s arrogance is stinking now.

"What a shame! May the soul of the poor person Rest In Peace."

According to local media, shortly after dropping the corpse of an uncle off at the office, the company agreed to process and pay off the claim.

The company said that the claim was due to go for further assessment, but did not specify what the holdup was for.

The grieving family are yet to make a statement to local media but social media users shared their thoughts online.

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"I am traumatised by this. Must have taken a lot for this family to do this with their dead," on person said.

"Old Mutual never pay black people’s claims. I have been screening at the top of my lungs for the past weeks of a policy they refuse to pay," another person added.

"I remember claiming for my late father’s policy after his passing with (Old Mutual) they never gave me any challenges," a third person said.

"They paid the proceeds without taking me from A to Z. I will forever be grateful for the services they rendered to me."

The insurance company responded to the claim, saying the policy had been paid out.

"This has been most unsettling and we are sympathetic towards the family during this difficult time," Old Mutual SA said in a tweet.

"Due to the sensitive nature of this matter, we will continue engaging directly with the family."