Fraudulent insurance claims at 40 percent
By Mike Mataka:
About 40 percent of claims in the insurance industry are fraudulent, the Insurance Institute of Malawi (IIM) has said.
This, the institute says, is affecting operations of most companies.
Speaking during an Annual Charter Dinner in Blantyre on Saturday, IIM President Hastings Kapesa said the he industry is struggling to crack down on the malpractice.
He said the vice threatens growth prospects for most players in the industry.
“Fraud is there and it’s rampant. It is a very dangerous animal which is threatening to kill the insurance industry if we can’t address it.
“About 40 percent of the insurance claims are fraudulent and that is why we are requesting the Judiciary to come to our rescue so that, together, we may address the challenge,” Kapesa said.
He said the institute is engaging the Judiciary on joining forces in addressing the challenge.
Chief Justice Rizine Mzikamanda said the courts are determined to deal with the vice in their quest to deliver justice.
“Indeed, the Judiciary is aware of the rampant rise in fraud cases in the insurance industry.
“Fraud should not be encouraged and must be stopped. As the Judiciary, we will do all we can to minimise the cases of fraud,” Mzikamanda said.
Mzikamanda also said insurance plays an important role in ensuring that the economy of the country keeps growing, even in the times of disasters and other natural calamities.