PETALING JAYA, Malaysia - Bank Negara wants all insurance firms and relevant parties to be more vigilant and take heed of some of its pointers to combat insurance fraud.

The menace, which is in the form of deception or dishonesty for unjustified financial gain, is committed at different points in the transaction by either an insurer, agent, policy owner or third party claimant, the central bank said.

Some examples of fraud include creating a fraudulent claim, overstating the amount of losses, misrepresenting facts to receive payment and bogus agents/sale of forged cover notes.

The central bank said some of the pertinent pointers one has to take to protect oneself from insurance fraud are:

•  Beware of any unregistered insurance agent offering his services. If in doubt, contact your insurance company or takaful operator or the General Insurance Association of Malaysia (PIAM), the Life Insurance Association of Malaysia (LIAM) or the Malaysia Takaful Association (MTA) to ensure the agent is an authorised one;
• Avoid paying premiums in cash. Choose to pay for premiums by cheque, money order or Internet payment to the insurance company or takaful operator directly;
• Do not sign a blank insurance or takaful proposal form, or insurance/ takaful claim form;
• Be suspicious if the benefits and price of insurance or takaful products offered by an agent seemed
  suspiciously favourable compared to products offered by other insurance companies or takaful operators;
• If you meet with an accident, be careful of strangers who offer quick cash or urge you to deal with specific workshops, medical clinic or law firm. They could be part of a fraud syndicate;
• Insist on detailed bills for repairs and medical services rendered and check for accuracy; and
• If you are being defrauded, have been or are being persuaded to take part in a fraud, contact your insurance company or takaful operator, PIAM/ LIAM/ MTA or the police.