There was an interesting insurance story in the newspapers yesterday. Was it a misleading sale or was there insurance fraud in a claim by a beneficiary?
On one side was a man who claimed that he had been cheated of RM5,000 in benefit payments. And on the other side, an MP’s aide was accusing the would-be beneficiary of trying to cheat the insurance company by signing his critically-ill friend for 18 policies.
According to The New Straits Times, the unnamed beneficiary said his friend had named him to benefit from a RM5,000 policy he took in July. When the friend died in August, his insurance claim was rejected.
He lodged a police report after failing to get the MP aide’s help in his claim. In addition, he blamed the aide for encouraging people to sign up for the scheme.
Not so, according to the aide who said that the complainant had bought 18 policies for his terminally-ill friend, naming himself among other beneficiaries.
“When the forms were submitted to the insurance company, they were immediately rejected because his friend’s name was signed up for 18 policies. The forms were rejected in November. The complainant had actually tried to deceive the insurance company by signing up a terminally-ill person and naming himself as the beneficiary.”
However, the MP’s aide said he was negotiating with the insurance company to return the RM1,800 which the complainant paid for the policies.