E-INSURANCE TO WIPE OUT COVER NOTE FRAUD

Lonpac Insurance Bhd
E-INSURANCE TO WIPE OUT COVER NOTE FRAUD

SEREMBAN: The long-standing problem of forged cover notes will be resolved now that the e-insurance application has come into operation, Transport Minister Datuk Seri Chan Kong Choy said.

In acknowledging that the problem is quite serious, Chan said the Road Transport Department (JPJ) and Bank Negara Malaysia had been receiving several complaints of insurance frauds every week.

“The system, which will start today, will wipe out unlicensed agents who issue forged insurance cover notes to deceive the public,” he said after launching the application at the state JPJ headquarters here yesterday.

He added that it was not necessary to produce a cover note to renew licences at JPJ counters as the information would be available online.

JPJ director-general Datuk Emran Kadir, who was also present at the launching, said the department had been testing the application since July 2001 and some 300,000 transactions were conducted without any hitches.

He said the department had decided to honour cover notes until the end of the year to prevent any unforeseen circumstances or in case of a system failure. He also urged the people to be wary of unlicensed agents offering them discounted insurance during the transitional period.
Chan noted that the e-insurance application would also help to address the problem of long queues and that it would not burden the people with additional cost.

Three firms – Reward-Link. Com Sdn Bhd, PDX.Com Sdn Bhd and Financial Link Sdn Bhd – have been appointed as the service provider to channel information from 40 insurance firms to JPJ.