Refusal to pay claim to extended family

Capitec now is declining to pay a claim on basis that the decease is an extended family, the very bank that delayed claim payment of the deceased mother until after the funeral.. the very "extended family" that foot the bill... where are these conditions on policy document, if this statement they are refusing to give in writing. Why did they include extended family on their cover if they can decline claim on this basis.. 4 weeks now, we are still on this..