Game over for insurance fraudsters

KUALA LUMPUR, 18  July 2017: 

Between 2014 and 2016, Allianz General Insurance Company (Malaysia) Bhd has stopped fraudsters with bogus insurance claims from pocketing RM5.6 million.

Insurance fraud is a growing concern in Malaysia and Allianz General has been paying closer attention to fraudulent claims in recent years.

Last year, the company formed a special unit of trained investigators with over 30 years of experience in law enforcement and the legal system to detect, track and investigate insurance fraud cases.

“In the past few years, we have stepped up our game to show insurance fraudsters out there that the buck stops here. Allianz General is sending out a message, loud and clear that we have zero tolerance for fraud,” said Jayapragash Amblavanar, head of claims for Allianz General.

“Our zero tolerance approach towards fraud means that we invest a lot of time and money when fraud is detected, suspected or alleged. Insurance fraud is not a victimless crime, it hurts everyone else who pays their premium and good people should not be punished for someone else’s crime.”

Globally, insurance fraud experiences an upward trend during an economic downturn. In Malaysia, following the moderate economy growth last year, Allianz General saw a rise in Own Damage (OD) and Third-party Bodily Injury (TPBI) claims.

Between 2014 and 2016, Allianz General’s OD claims – which exclude windscreen claims and theft claims – rose 16% from while TPBI claims increased 36% with an average of at least six fraud cases reported in a month.

The fight against fraud assumes great importance with the phased liberalisation of the motor and fire insurance. Allianz General’s crackdown on fraudulent claims serves the company well in an environment that encourages insurers to be competitive with the price of their product and service.

“Single digit cases being reported in a month may not seem like a big problem to some, but, it shows that insurance fraud is very real in Malaysia. So our commitment towards fraud control means being proactive and willing to take the necessary steps and put in place better controls to nip the problem in the bud.

“Fighting off fraud means we gain better financial freedom and flexibility to offer far better priced products to our customers and cementing our reputation as insurer that you can trust to do the right thing.”

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