Introduction
Many car owners in Malaysia don’t realize that insurance fraud can happen even when they’re just trying to buy or renew a policy. From fake paperwork to so-called agents promising “extra coverage” that doesn’t actually exist — scammers have plenty of tricks to take advantage of people who just want things done quickly.
That’s why it’s worth taking a few minutes to understand what to look out for. This guide breaks down how to spot suspicious deals and stay protected — especially when handling your insurance online through trusted platforms like BJAK. Using an official platform ensures your policy is genuine, properly issued, and backed by real insurers.
What Is Insurance Fraud from a Policyholder’s View
Insurance fraud happens when someone pays for a policy that turns out to be invalid or fake — often because of manipulation by unlicensed individuals.
This section focuses on how outsiders trick policyholders — not on situations where insurers reject claims because of the policyholder’s own mistakes.
Common examples include:
- Buying a policy that isn’t registered or recognized in Malaysia.
- Being promised benefits or add-ons that don’t actually exist.
- Making payment into a personal or unofficial bank account.
Types of Insurance Fraud Targeting Policyholders
1. Fake or Invalid Policies
Some people sell fake insurance — whether online or face-to-face.
You won’t be able to verify these policies on official platforms like BJAK, MyJPJ, or MyEG, and insurers will reject your claim once they find out it’s fake.
2. Overpromised Coverage
There are also agents who exaggerate what a plan covers — for instance, saying a Comprehensive plan protects “everything”, when it’s actually just a Third Party, Fire & Theft (TPFT) policy.
3. Online & Phishing Scams
Fake websites and emails made to look official can trick users into sharing details like policy numbers or IC info.
Some scammers even copy legitimate brand logos or names to appear credible.
Signs You Might Be a Victim of Insurance Fraud
- Your policy can’t be verified on any official portal.
- The premium offered seems far cheaper than the market rate.
- The agent avoids giving full documents or policy terms.
- Payment is requested via personal or non-company bank accounts.
How to Avoid Getting Scammed
1. Verify Your Policy on Official Platforms
Always confirm your policy through BJAK, MyJPJ, or MyEG.
Check your policy number, coverage type, and expiry date before paying anything.
2. Check the Agent or Company’s Legitimacy
Make sure the agent is registered with Bank Negara Malaysia or an authorized insurer.
Avoid intermediaries who can’t prove their identity or license.
3. Read the Policy Properly
Take time to go through what’s included — and what’s not.
Look at coverage limits, NCD protection, and add-ons to avoid surprises later.
4. Be Careful with “Too Good to Be True” Offers
If the price looks unrealistically cheap, pause and verify.
Unusually low prices are often bait for quick transfers to fraudulent accounts.
5. Protect Your Personal Information
Never send your IC, car registration number, or bank info through unofficial channels like random WhatsApp messages or unknown emails.
6. Report Anything Suspicious
If something feels off, report it to your insurer, Bank Negara Malaysia, or the nearest police station. Quick reporting can prevent others from being scammed too.
Conclusion
Insurance fraud cases have become more creative in recent years, but staying alert makes a big difference.
Always use official and trusted platforms like BJAK when buying or renewing your policy, double-check who you’re dealing with, and don’t rush payments.
A few simple checks can save you from unnecessary losses — and ensure your vehicle stays properly insured without worry.
Read More:
Pay Car Insurance In Instalments : What You Need To Know
