Motor car insurance claims in the Philippines reached about PHP7 billion (US$136.5 million) in 2017, according to the country’s Insurance Commissioner Dennis Funa. However, industry leaders estimate that 10% of these claims are fraudulent, he said in an op-ed piece.
“Detecting fraud has become a challenge for insurers and the entire industry. It is also important to ferret out professional fraudsters extorting from the insurance industry. In this regard, insurers must have an internal anti-fraud mechanism,” said the commissioner as published by the BusinessMirror.
As part of efforts to clamp down on fraud, Funa said the industry has come up with the Motorcar Claims Information System (MCIS). This enables the industry to keep an eye on cars or motorbikes that have been reported as total loss, such as those that are stolen, carnapped, or totally wrecked.
Information generated by the system is being shared with the country’s police. Funa said there is a proposal has also been floated to integrate MCIS with the country’s Confirmation of Cover Authentication Facility.
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