The absence of a special guideline for accident insurance claims has caused insurance applicants to be laid bare to the deception of irresponsible parties, said a consumer activist.
Malaysian Muslim Consumers' Association (PPIM) activist Datuk Nadzim Johan said until now they have received more than 500 complaints from accident victims and heirs who claimed that they have been deceived.
These cases occur because our country does not have a clear policy and guidelines for procedures for an insurance claim, allowing some law firms to capitalise on the situation, he said.
"Among the fraudulent cases reported include insurance payments received that are too little as compared to the original total paid to the insurance agency, absurd legal fees as well as charges or government tax.
"As such, prompt action needs to be taken to curb this matter, following which it will prevent many from being deceived by these irresponsible parties," he said.
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