Kurnia Malaysia
Motor insurance fraud now more complex
THE STAR - Saturday, July 29th, 2006
KOTA BARU: Insurance companies are facing increasingly sophisticated fraudulent
motor insurance claims for bodily injuries.
It is believed several parties had beenworking together to cheat companies
of up to millions of ringgit.
Kurnia Insurans (M) Bhd has detected a growing number of such claims, and
it is difficult to prove fraud owing to the involvement of many parties.
Its chief executive officer Kong Shu Yin said yesterday injury claims were
being exploited by policy holders working in cohorts with other groups.
He cited hit-and-run cases where the claimants somehow manage to track down
vehicles whose owners were fully insured and listed these as the cars which
hit them and caused the injuries.
Technology such as online issuance of cover notes was a way to address fraud,
he said after opening the new Kelantan Kurnia branch office.