Fined $8,000 for inflating car insurance claim

[Darthrevan]

 

IN THE first case of its kind, a former insurance claim advisor was fined $8,000 for inflating the cost of repairs done to a car involved in an accident in April 2009. Liew Hock Wei, 29, had pleaded guilty last week to trying to cheat NTUC Income Insurance Cooperative of $9,449.

 

Then, a district court heard that he had submitted a claim for $21,363 for costs of repairs to the car. It had been left in the car park of Bukit Batok Street 32 when another car hit it. The insurance firm appointed independent surveyor JP Knights to assess the repairs and discovered that the radiator and the rear tailgate had not been replaced as claimed by Liew.

 

During further investigations, the Malaysian admitted that 17 other parts had been repaired and not replaced. These included the front bonnet, aircon condenser and rear bumper. The total cost of all of these items he had initially claimed had been replaced added up to $9,440.

 

Liew, who was then working for motor workshop MBM Wheelpower told police that it was 'market practice' to inflate insurance claims.

 

Defence counsel Anand Nalachandran had confirmed that the money would have gone to the workshop and not to his client. Liew had committed the offence out of 'over-zealousness', the lawyer added.

 

In passing sentence, district judge Kessller Soh said while offences involving cheating insurance companies usually carried a jail sentence, in Liew's case a stiff fine would be an appropriate deterrence.

 

http://www.straitstimes.com/BreakingNews/S...ory_676799.html

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so this is why insurance premiums keep going up? :angry:

 

Edited June 6, 2011 by Darthrevan

[Acieed]

Yes. Hope this will be a deterrent, and more to come. Insurance company blame workshop, workshop blame insurance company.

 

 

 

[Acerchan2002]

No wonder my fren father paid full cash for his f10 523i. He told me that his father do claim insurance.

[Zyrofillica]

No wonder my fren father paid full cash for his f10 523i. He told me that his father do claim insurance.

 

what to do? PPle bang my backside, i go my workshop, he also help me settle. i dun care dun know what he does but as long my car repair sui sui and i have replacement car drive can already~

 

When there is a demand for such services, there will always be a supply. The only way to stamp it out is to have everyone claim from their own insurance

[Expertz]

fined 8k over a cheating case of 9.5k is not a stiff fine!

they fine you $50 for throwing a 50c cigarette butt on the floor and that isn't even considered a stiff fine

[Tigershark1976]

"Liew, who was then working for motor workshop MBM Wheelpower told police that it was 'market practice' to inflate insurance claims."

 

i was wondering why the cheng hu never persue this matter and dig out the big snake behind...

[Curahee]

My friend picanto kiss a merc backside lightly, result in minor scratch, no dent, only paint work damage. Claim insurance end up the bumper cost 6k. I almost puke when she tell me the price after i see the picture of the damage. 6k for such repair, really daylight robbery

[Qpik]

This is an "open secret" which we, motorists must ponder why isn't the relevant authority doing anything abt it.

 

Car insurance is just a legal way for them to fleece motorists & get away with it.

[Cruise]

If you accidentally bought Aviva insurance and moified your car and get into accident, thats even better, no need to claim, no need to over inflate the claims. All claims void!

[Mllcg]

My friend picanto kiss a merc backside lightly, result in minor scratch, no dent, only paint work damage. Claim insurance end up the bumper cost 6k. I almost puke when she tell me the price after i see the picture of the damage. 6k for such repair, really daylight robbery

 

bang from behind always wrong de.

 

and why bang back and paint back? spoil le just change

[SimonTan]

Just imagine each day inflate one car claims, and pocket chao-chao $1k. Each day!!

One month salary easily >$30k above!!!

 

 

[Yeobh]

The whole accident claim industry works on " I scratch yr back u scratch my back" system.

[Darryn]

Hmmm...cheat by $9,000+ get $8,000 fine. Sounds fair to me (NOT)

 

And we all have role to play in stopping it - no point saying "so long as car repaired I don't care" or "even if only scratch, I want it replaced as someone else paying"

 

The simplest thing to do is to check on and monitor the repairs, and if they replace parts, ask to see the old parts. Like that easy easy one - will help to stop you from being cheated. Is standard practise othter tiimes when I have car repaired that I am shown the "old" part after it has been replaced.

[Tom_kkh]

name me a ws that don over claim. lolx.

 

sometimes those blur car owner don even know what the ws claim for and did not replace.

Edited June 7, 2011 by Tom_kkh

[S4vtec]

don't the workshops get implicated as well ? heavy heavy fine and that should deter them.

[Newkidontheblock]

i've heard of many cases where the claim is inflated by rediculous amts...

 

my friend hit another guys bumper at a carpark...

one dent... claim 7 over k... lucky his uncle is a lawyer... went to court, won the case, justice done...

 

the thing is that most commoners like me (unfortunately), dont know the proper procedures to "protest" against such things...

 

same thing for those people who adjust the mileage on cars... its everywhere but nothing is being done to clamp down on it....

 

someone ought to step up and do something abt it ...

easy to say... but ya... i hope things will be more transparent one day

[Kangadrool]

Sorry, this reply is to Curahee.

 

probably your fren refused to settle private. So, Merc driver no choice but to claim 3rd party. It is amazing that so many people simply refused to pay $100-500 just to settle privately, but enjoy loosing their NCD and paying higher premiums to insurance cos.

Edited June 7, 2011 by Kangadrool

[Yeobh]

Right , why go for only the claim advisor. The company should be held responsible.Since no jail term is imposed, the fine amount should be 4 time the total $$ claim.