Select a question to reveal its answer or go back to choose a different topic.
 
FAQs on Insurance Fraud
 
    If I exaggerate the sum insured of my property, will it be considered as fraud?
    •  
      An exaggeration of the sum insured is not necessarily fraud. It is more likely that the property is over-insured. However, it is not useful to exaggerate the sum insured, as you will only receive the lower of 'market value' of the property or sum insured when the claim is settled. However, an exaggeration of a claim with intention to deceive would tantamount to insurance fraud.
       

    Assuming that I have purchased multiple insurance policies, say to protect a particular property, in the event of loss or damage to the property, will it be considered as fraud if I make multiple claims?
    •  
      Under the principle of contribution, it is not advisable to buy more than one policy to protect a particular property. If you do buy more than one, in the event of loss or damage to the property, you can only make one claim and the amount payable will then be contributed by the insurance companies or takaful operators involved.

      However, if you wish to cover your life, you can buy more than one policy. If you have purchased more than one personal accident insurance policy, in the event of your demise or disablement, you or your beneficiary, as the case may be, will be compensated under each policy. However, for certain losses, which are compensated on reimbursement basis, such as medical expenses, you will only be compensated once for the actual loss suffered.
       

    I have been offered to renew my motor policy at a cost significantly lower than the amount I'm currently paying. Should I be suspicious of this offer? Should I be similarly suspicious if the renewal cost is higher than the amount currently paid?
    •  
      For motor insurance or takaful policy, the minimum rates to be charged by insurance companies or takaful operators are set by the Malaysian Motor Tariff. In addition, insurance companies or takaful operators and/or their agents are not allowed to give rebate/discount under the Motor Tariff.

      Any reduction in your motor premium upon renewal could be due to reduction in the sum insured of the vehicle and the No-Claim-Discount (NCD) entitlement enjoyed. On the other hand, your insurance company or takaful operator may impose additional premiums or loadings to the premium payable in view of higher risk factors involved such as age of your vehicle and your claims experience.

      However, if you feel that you have been offered renewal at suspiciously lower premium rate, you should contact your insurance company or takaful operator or PIAM/MTA for confirmation.
       

    My car is involved in an accident with another car and I am making a claim against the insurance company or takaful operator of the other car. A repairer offers to repair pre-existing damages, which are not caused by the accident. Is the offer considered as fraud?
    •  
      As a third party claimant, you are entitled to claim for the costs to repair the damages to your car due to the accident from the insurance company of the other car. Any claim for the costs to repair pre-existing damages, which are not caused by the accident, is considered as fraud. Do not accept such offers.
       

    I have paid my premium to an insurance or takaful agent. However after sometime, I discovered that the insurance company or takaful operator did not receive the premium at all. What would happen to my insurance policy?
    •  
      If you pay the premium to an agent who is registered with PIAM/LIAM/MTA and you can prove that you have paid the premiums to the agent (by producing either the cover note or payment receipt), your insurance or takaful policy is still valid. You should report the misconduct of the agent to your insurance company or takaful operator for action to be taken against the agent concerned.

      However, if the agent is not a registered agent with PIAM/LIAM/MTA i.e. bogus agent, no insurance coverage is effected. You should lodge a police report against the bogus agent and arrange to purchase the required cover from insurance company or takaful operator or its registered agents.

      To protect yourself, always make sure that you only buy insurance cover from a registered agent and ask for a receipt as the evidence of payment made.
       
 
 
 
Related Information
 

Insurance fraud
 
What Else Can I Do?

Email this to a friend

Bookmark this page

Give us your feedback