Bangladesh: 400 applications received to set up new insurance companies
Bangladesh's Finance Ministry has been swamped with hundreds of applications to launch new private insurance companies in the country, reports the Financial Express. Among the applications, 90% are for life insurance companies and the rest for non-life.
South Korea: Unclaimed insurance sums approaching US$360 mln
The amount of insurance sums left unclaimed by customers in South Korea is reaching 400 billion won (US$358.5 million), reports Arirang News citing the General Insurance Association of Korea.
India: Temples turn to insurance
Cash-rich and gold-laden temples across India are seeking somewhat less divine intervention to protect their riches: From priests, pilgrims, ornaments, buildings, elephants and even cattle inside temple premises, the insured list is quite extensive, reports the Business Standard.
Japan: Pet insurance gaining popularity
More pet owners in Japan are taking out pet insurance to mitigate the expenses of caring for their pets which are living longer these days thanks to advances in medical technology, reports Kyodo News International.
Asia Insurance Review 21st January 2011
Friday, January 21, 2011
Thursday, January 20, 2011
To the Members/Followers of my blog
Dear Valued Members
Thank you for registering as members/followers of my blog.
To the newest members ie Glory, Sonny Voon, Liew Wai Hoong, Felix and Benny Ong, welcome on board. You people really practice what I called "Action speaks louder than words"
Feel free to post your comments in my blog or if you have any topics of interest that you may want to post and share it with members/ readers of my blog, you are most welcome to do so.
Warmest regards from
Steven Cheah
Thank you for registering as members/followers of my blog.
To the newest members ie Glory, Sonny Voon, Liew Wai Hoong, Felix and Benny Ong, welcome on board. You people really practice what I called "Action speaks louder than words"
Feel free to post your comments in my blog or if you have any topics of interest that you may want to post and share it with members/ readers of my blog, you are most welcome to do so.
Warmest regards from
Steven Cheah
Friday, January 14, 2011
Insurance Fraud costing Insurers hundreds of Millions
Information sourced from The Star, 14 Jan 2011 and summarized below for your reading pleasure.
Fingers have been chopped off, medical ailments exaggerated and even death faked - all for the purpose of fraudulent insurance claims.
The problem is widespread and insurance companies have lost hundreds of millions of ringgit, forcing them to push up the premium rates and pass on the costs to other consumers.
Records from the Federal Police show that fraudulent claims have been increasing in the past few years with Selangor, Kuala Lumpur and Johore having the highest number of cases.
In 2007, a total of 38 cases involving RM4.1 million in losses were reported. However 2008, saw a slight drop in the number of cases with Selangor topping the states with RM1.3 million. The number of fraud cases was at its highest in 2009, with 65 cases involving RM5.9 million in losses. 2010 figures until August stood at RM 1.1 million with 50 cases reported.
Although the police put the amount involved at about RM 12million in the past 4 years, the industry estimates that bogus claims cost Insurers about RM500 million a year.
The claims come in all shapes and sizes:
Third party claims frauds are committed by reporting non existent accident where police report, hospital records, specialist reports and other documents - all contained false information.
Life/PA insurance fraud involves the use of false medical cards, forged / faked death and burial certificates, marriage certificates, police reports and other relevant documents.
Fire claims involve mostly industrial companies. Store owners whose businesses are on the decline or those with outdated goods have been found to have set their premises ablaze.Claim is said to be higher than the actual amount lost.
The last and most common claim involves car theft. There were known cases of people who were heavily in debt, resorted to working with syndicates by reporting that their vehicles had been stolen.
A word of caution from the author:
Making a fraudulent claim is a serious offence and is punishable under the Penal Code.
Fingers have been chopped off, medical ailments exaggerated and even death faked - all for the purpose of fraudulent insurance claims.
The problem is widespread and insurance companies have lost hundreds of millions of ringgit, forcing them to push up the premium rates and pass on the costs to other consumers.
Records from the Federal Police show that fraudulent claims have been increasing in the past few years with Selangor, Kuala Lumpur and Johore having the highest number of cases.
In 2007, a total of 38 cases involving RM4.1 million in losses were reported. However 2008, saw a slight drop in the number of cases with Selangor topping the states with RM1.3 million. The number of fraud cases was at its highest in 2009, with 65 cases involving RM5.9 million in losses. 2010 figures until August stood at RM 1.1 million with 50 cases reported.
Although the police put the amount involved at about RM 12million in the past 4 years, the industry estimates that bogus claims cost Insurers about RM500 million a year.
The claims come in all shapes and sizes:
Third party claims frauds are committed by reporting non existent accident where police report, hospital records, specialist reports and other documents - all contained false information.
Life/PA insurance fraud involves the use of false medical cards, forged / faked death and burial certificates, marriage certificates, police reports and other relevant documents.
Fire claims involve mostly industrial companies. Store owners whose businesses are on the decline or those with outdated goods have been found to have set their premises ablaze.Claim is said to be higher than the actual amount lost.
The last and most common claim involves car theft. There were known cases of people who were heavily in debt, resorted to working with syndicates by reporting that their vehicles had been stolen.
A word of caution from the author:
Making a fraudulent claim is a serious offence and is punishable under the Penal Code.
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