By PETER ESILA
AN estimated K2 million is lost every year through fraudulent claims on vehicle accidents, according to the Motor Vehicle Insurance Ltd (MVIL).
Managing director Michael Makap said the fraudulent claims “operate under a syndicate” which was also involved in fake vehicle registration and fake drivers’ licences.
“They sell these registrations and licences for half the price or less on the street,” he said.
“We found a few in the past and prosecuted them but the culprits were let loose while in police custody.
“We are faced with the activity of fraudulent claims, which impedes the genuine ones from closing out quickly.
“We have invested in a risk and audit department that works closely with our claims and legal departments to isolate the claims that appear suspicious and channel the genuine ones to our insurance assessors to negotiate on impact of injuries sustained and work out reasonable settlement.”
The MVIL is holding workshops in Mt Hagen and Goroka to improve processes, especially the management of claims and settlements.
He said stakeholders’ working groups were trying to find solutions to the common problems.
He thanked the provincial governments, police, provincial health authorities, Road Traffic Authority, law firms, medical practitioners and MVIL officers who addressed the issues on the reporting of accidents, ensuring compliance so that the person injured is promptly dealt with under the Compulsory Third Party (CTP) Insurance policy.
“By law we only have six months to settle a claim,” he said.
Makap said the MVIL was reviewing its processes to make the business efficient and robust.
“Our CTP business is regulated and is pretty much a monopoly.
“And with the 26 branches we operate in the country, we will provide the most needed service in CTP.”
The MVIL is wholly owned by the Government through shareholding held by the Kumul Consolidated Holdings.
By PETER ESILA