Malaysian adjusters say motor insurance fraud costs about RM1 billion each year
Adjusters estimate that fraudulent car insurance claims in Malaysia result in roughly RM1 billion of losses annually, with accidents, thefts and staged crashes being the most common schemes.
According to the Association of Malaysian Loss Adjusters, fraudulent motor-insurance claims cost the Malaysian market roughly RM1 billion each year. AMLA chairman Y.K. Foo identified the most frequent fraud types as bogus accidents, stolen-vehicle claims, fires and staged multi-car collisions.
On average, an adjusting firm reviews about 200 dubious cases per year, with investigations confirming fraud in 40-50 % of those flagged. The association’s 41 members split their focus between motor fraud and other insurance investigations. Fraud tactics include buying a new policy after a long lapse to claim for a recent crash, pairing an uninsured damaged car with an insured one to fabricate a crash, and increasingly, vehicle arson to destroy evidence.
Foo also warned drivers about opportunistic tow-operators who tamper with wrecked cars to inflate payouts. AMLA is pushing for faster, secure data sharing among insurers, adjusters, police and medical providers to curb the problem and keep premiums stable.
