Motor Insurance Fraud

Frequently Asked Questions

1. What can you do if you suspect that the other party’s claim is dubious or inflated? Can you challenge the claim?

You should alert your insurer promptly if you suspect the other party’s claim to be dubious or inflated. Be prepared to provide your insurer with supporting information and details that may corroborate your suspicion.

Your insurer will look at the available evidence and decide if the claim can be contested. If it believes you are not at fault in the accident, it will challenge the claim.

2. What is the motor insurance industry doing about the problem of spurious claims?

The general insurance industry, through the GIA, continues to find ways to address the problem of spurious claims. The GIA has launched a hotline (1800–44–37283 or GI-FRAUD) where customers and members of the public can call to alert the Association to possible cases of insurance fraud, such as spurious claims. We are also intensifying our effort to educate the public on insurance fraud and are tapping the use of data analytics to track fraudulent and inflated claims. Individual insurance companies have also set up their own special investigative units to detect and fend off fraud.

3. How can you do your part in curtailing the practice of filing spurious claims?

You can do your part by alerting the GIA of any potential cases of spurious claims by calling this hotline: 1800–44–37283 (GI–FRAUD). GIA will then refer the information regarding fraudulent practices to the respective insurer for their investigation, and if warranted, escalate the matter to the Police.

4. What are some common examples of motor insurance fraud?

Motor insurance fraud involves conspiring to make false or exaggerated claims involving property damage or personal injuries as a result of an accident. Some common examples include staged accidents, where fraudsters deliberately “arrange” for accidents to occur; the use of phantom passengers where persons not even at the scene of the accident claimed to have suffered grievous injury, and making false personal injury claims where personal injuries are grossly exaggerated.

Motorists are advised not to inadvertently be enticed by the “promise” of monetary rewards by participating in such fraudulent motor accident claims. Insurance companies will strenuously investigate any suspicious motor accident claims and will not hesitate to escalate the matter to the Police.

Please see newspaper clippings of cases which have been brought to justice.


Newspaper Articles


Ong Ai Peng


Hamzah


Phang Choon Meng

Posters


Benefits of an In-Vehicle Camera

In-vehicle cameras can act as 'witnesses' in case of disputes in motor accident claims.

In the event of an accident, video recordings often provide clear and objective evidence of circumstances leading to the accident, and can assist insurers to understand how the accident took place. In many cases, the settlement of insurance claims can be expedited when liability can be clearly determined from the recording. Furthermore, claims costs are likely to be minimised without the need for a lengthy investigation.

More importantly, with timely and accurate information plus recording of the event, the opportunity for filing exaggerated and fraudulent claims is also minimised.

Vehicle owners are strongly encouraged to install in-vehicle cameras.


To Report a Fraud

Click Here


Additional Information in connection with an Accident

Please inform the insurer of the vehicle which you are driving at the point of accident upon knowledge of any impending prosecution, inquest, fatal inquiry or offer of composition. Failure to do so may lead to insurer’s repudiation of liability under the motor policy.