A friend told me that it is now quite common for Singaporeans to make inflated claims on their travel insurance policy. They lose a bag for (say) $200 and they make a claim for $800 on a false invoice.
These claimants do not realise that they are committing a crime of cheating, and can lead to quite severe punishment. It is not worth making such a false claim.
The inflated claims will also cause insurance companies to raise their premium rates for travel insurance. This will not be fair to the honest policyholders who do not make inflated claims.
Dear Mr.Tan,
ReplyDeleteI am a recent visitor to your blog and I have started to read all your articles, comments etc and its really nice to get your ideas, views and experiences.
Regarding Inflated travel claims, I agree with your point that the claimant should be genuine in their claims as otherwise this will affect other policy holders.
However wondering,
1) Would the insurance companies not factor this risk in their premium rates?
2) Are the insurance companies not in a position to mark a "ceiling" on the claim amount in case of loss of bag during travel rather than approve the amount input by the claimants. Any exceptions in amount above the "ceiling" could be dealt separately.
Regards
Karthi