23 Mar '14, 8am

#Insurance body calls for new law to fight #fraud #GIA

THE General Insurance Association of Singapore (GIA) is calling for a new law against fraud. It submitted a 30-page paper to the Monetary Authority of Singapore last month to recommend new rules that provide clearer definitions of insurance fraud, to deter people from filing fraudulent claims. GIA technical director Jimmy Tan noted that insurance fraud cases are currently considered as cheating under the Penal Code. Exaggerated or inflated claims make up most of such cases, he added. A motor workshop may submit a claim of $10,000 for a damaged car bumper on behalf of its client, for example, when the actual cost of repairs is only $2,000, he said. Under the new law proposed by the GIA, the workshop would have to be able to justify the $10,000 price tag for repairs. The new law would target parties that collude or assist in making fraudulent claims, he added. "It may not se...

Full article: http://www.cpf.gov.sg/imsavvy/infohub_article.asp?readid=...

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