Sometime ago, one policyholder submitted a motor claim amouting to about $50,000 through his workshop. This claim was to compensate him for the loss he suffered due to a fire damage to his car.
He reported that he was driving in West Malaysia when he suddenly noticed smoke coming out from the front bonnet of his car. He quickly stopped his car at the road shoulder. Within minutes there was an explosion and the whole car was engulfed in flame.
Protracted investigation into the claim revealed that the car was believed to be involved in an earlier collision and that the fire damage was likely to be staged. Enquiries were made with the Malaysian authorities. The staff handling the case also received threats from unknown parties.
After gathering sufficient evidences, the matter was referred to the police. While investigating into the case, the police discovered that the finance company for the car had also been cheated. Subsequently, one of the party involved in the syndicated plot was arrested and charged in Court. He was sentenced to 12 months imprisonment. The police is still investigating into the other connected cases.
We managed to save $50,000 which would have been paid out had we been not vigilant.