MVIL: Millions lost from claims
By DALE LUMA
THE Motor Vehicle Insurance Ltd (MVIL) loses millions of kina a year to fraudulent insurance claims, managing director Michael Makap says.
In an interview with The National, Makap said it was one of the main challenges facing the state-owned entity (SOE) which it was trying to minimise. Makap said MVIL’s core business was paying out insurance claims with significant resources utilised and when fraudulent claims went unnoticed, it affected its cash flow.
“Significant part of our resources goes into managing and handling claims,” he said.
“That’s our business, our core business for the accident victims to come and give their claims and then we go through and assess.
“Sadly, there are fraudulent situations where we have people who try to claim falsely and a lot of people work together and collude with certain people in the community and service providers.
“Sometimes we find out the fraud and sometimes we do not.
“Those that we do not, it impacts on our cash flow so this is one area we have spent a bit of time trying to see if we can mitigate it and try to minimise it because we will never get rid of it.”
Makap said an internal legal team was set up to handle some of the issues of claims.
The team would work with medical experts and police.
He said regional claims offices were also going to be set up in Mt Hagen, Goroka, Lae and Kokopo to handle claims in the provinces – where the claimant is from – rather than coming to Port Moresby.
Makap said Mt Hagen in Western Highlands had the highest number of insurance claims.
He said those who are identified trying to engage in illegal insurance claims would be dealt with.
3 comments
The good managing director and his team needs to improve their strategies on how to mitigate and eliminate losing millions of kina through false claims. The current processes you have in place aren’t working for you so instead of giving excuses and saying we will never get rid of it – consider tightening up lose ends in the claims process by conducting a complete audit of the system/claims process and identifying loopholes and instituting improvement measures to prevent losing money. Learn from other similar institutions and how they are managing such processes to improve how you deal with and manage your claims.
Makap Michael, stop crying like baby. Stop barking like dog. You need to be strategic in your management and leadership. It all starts from you as the leader. You are telling PNG that you are a weak leader who lacks vision and purpose for MVIL. If you can’t do it..resign and let another skilled qualified and experienced person take the lead.
The Papua New Guinea Doctors Association needs to lift its game such as other professional bodies. Look at Certified Practicing Accountants PNG (CPAPNG). It is regulated by the Accountants Act 1996, therefore, if any Accountant doesn’t follow the code of conduct prescribed under the Act and its by laws, that person is blacklisted and almost all companies and businesses recognize the body. The same should be done for doctors or rather streaked measures should be placed so that false reports are not released in fear of losing their job or a general practicing license.
This is because the Doctor’s report plays a huge role in determining whether to pay for third party compensation by MVIL. If MVIL could find a way to influence such bodys for its own and stakeholders benefit, im sure loses can be covered/gained in the long term.
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