Fraudulent Insurance Claim

I am writing this in response to a car review talk show on BFM on Dec 1 during the noon to 1pm segment. I would like to think that as a responsible radio station and medium of information, BFM ensures that information presented to listeners are accurate and correct. If such information helps to enlighten their listeners to be better human beings, that would be a bonus, I think.

I happened to be listening when the programme presenters talked about the issue of cars being burnt during the recent riot at the temple in Subang Jaya. The invited guest was commenting that he had checked with his friends in the insurance industry and was told that a car’s basic comprehensive insurance policy covers fire damage but not riot, strike and malicious damage (RSMD) unless an additional premium is paid for an extension to cover this risk.

The suggestion that followed this statement both appalled and amazed me as a concerned individual. I don’t exactly know what his intention was but I was shocked when he suggested on air and specifically to the owners of cars damaged in the riot, especially those whose policies do not have the RSMD extensions, to have their cars towed away somewhere and to then submit falsified claims to the insurers.

This was quite unbelievable coming from a reputable radio station that prides itself for attracting listeners who are mature and intelligent people.

Perhaps the presenters should be reminded that their views and opinions can contribute wrong ideas to people, and it is hoped that they are vigilant and do not present or air such misinformation. I would dread to think that gullible and naïve listeners might think that it is all right to submit falsified claims to the insurers.

The motor industry has always been plagued with fraudulent claims and the last thing we want is for someone from any radio station telling listeners how to submit false claims as casually as he did.

And the worst part is that he thought it was perfectly all right to make such falsified claims. When things like this are broadcast, is it any wonder that the public perception is that insurers are always declining to pay claims or that insurers are cheating them of their claims?

These people will conveniently not mention that it was them who were trying to falsify their claims in the first place.

An insurance policy is a contract which is legalised with a RM10 stamp duty and is always enforceable in a court of law. If a claim is payable, the insurers will be more than happy to settle. But when the insured are not paid to their expectations, it is typically because they had underinsured – and then they complain that they have been short-changed. Whatever is paid is determined by an independent adjuster and in accordance with the insurance policy contract.

I hope the radio station will do the right thing and inform listeners of the flawed logic of making fraudulent claims. Listeners must be made aware of the fact that if an insurance policy does not cover an incident, don’t try to cheat.

I would like to end with a particularly apt saying from a prominent local banker: We need to remind ourselves that integrity is not just a nice word; it is something we should live by every day.

A CONCERNED INSURANCE AGENT