Fake insurance certificates worry IAM

Insurance Association of Malawi (IAM) has expressed concern over rising fraudulent activities that have rocked the industry with some people selling fake motor vehicle insurance certificates to unsuspecting buyers.

In an e-mailed response to a questionnaire, IAM vice-president Dorothy Chapeyama said the fraud leaves innocent victims without compensation when involved in accidents.

In a statement released on Monday, IAM warned the public to watch out for some people who are selling fake insurance certificates.

The fraudsters are either selling fake certificates or embossing a name of an insurance company on an already expired insurance certificate which are then sold to unsuspecting motorists after altering expiry dates.

The association has also urged motorists to only buy the certificates from insurance companies, brokers or insurance agents approved and registered by the Reserve Bank of Malawi (RBM).

Asked the number of cases that have so far been reported to IAM, Chapeyama said “regardless of the numbers, it is a worrisome development because it leaves innocent victims with no recourse for compensation following road accidents as there is basically no insurance cover with such fraudulent arrangements.”

She, however, dismissed fears that the tendency has been going on for long, saying the motor certificates have enhanced security features which cannot be copied.