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Insurance fraud is not a 'victimless’'or 'hidden' crime because, in reality, it costs everyone, especially you, the policy owner. Insurance fraud results in :
 
  Higher premiums and higher prices for goods and services
    Insurance companies and takaful operators will ultimately pass on the costs of combating and paying fraudulent claims in the form of higher premiums. In turn, businesses who have to pay
more for insurance, will pass it on to their customers.
     
  Reduced availability of insurance
    Insurance companies and takaful operators may impose stricter underwriting requirements and restrict their scope of coverage to limit losses due to fraud. They might also withdraw cover for sectors where insurance fraud is rampant.
     
  Delayed settlement of genuine claims
    Insurance companies and takaful operators will have to conduct a thorough investigation where fraud is suspected. The stringent claims settlement procedures to weed out fraud will result in the delayed settlement of genuine claims.
 

Beware of unregistered insurance agents offering you their services. Before buying insurance, contact your insurance company or takaful operator or Persatuan Insuran Am Malaysia (PIAM), the Life Insurance Association of Malaysia (LIAM) or the Malaysia Takaful Association (MTA) to ensure the agent is an authorised agent.

Avoid paying premiums in cash. Choose to pay for premiums by cheque or money order made payable to the insurance company or takaful operator instead of the agent.

Do not sign a blank insurance or takaful applications, or insurance or takaful claim forms.

Be suspicious if the price of insurance or takaful seems suspiciously low compared to other insurance companies or takaful operators.

Insist on detailed bills for repairs and medical services rendered and check for accuracy.

If you are being defrauded or have / are being persuaded to take part in a fraud, discreetly contact your insurance company or takaful operator, PIAM / LIAM / MTA or the police. Provide as much information as you can, name(s) of the people involved, amount(s), date(s) and type of fraud(s).
 
As a consumer, you can play a role to combat fraud. Make sure you do not knowingly commit fraud or assist others to commit fraud. If elements of fraud are established in your claim, the insurance company or takaful operator has the right to deny liability and reject your claim. Additionally, legal action may be taken against you.
 
 
 
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For more details, please download our booklet on insurance fraud or contact your insurance company or takaful operator for assistance.