The Laundromat: Lessons About Insurance Scams

(Photo Credit: IMDB)

Insurance scams are prevalent in this day and age, taking many forms and involving varying degrees of people.

The Laundromat is a 2019 comedy-drama that is based on the information leaked in the infamous Panama Papers­. Over 11 million documents were leaked, exposing financial and attorney-client information which unveiled how the rich were using fake offshore companies to carry out fraud and other forms of manipulation in the name of bolstering their net worth even further.

Often, these schemes take advantage of those in the middle-income and lower-income brackets. Meryl Streep’s character, Ellen, certainly falls under this category when tragedy struck her and her husband while they were on holiday where a ferry accident ultimately led to the death of Ellen's husband. Unfortunately, her woes didn’t end there.

Insurance is important due to the assurance it provides when ill-fated scenarios occur. Often, insurance plays a vital role in determining if one is able to bounce back from their losses or not. When Ellen was trying to put her life back together again after the loss of her husband, she was met with the news that the ferry company's insurance agent was fraudulent. This meant that she had no remuneration to help her cope.

(Photo Credit: IMDB)

Fraudulent insurance companies or agents are everywhere. In Malaysia, we have our fair share of evildoers too. Commonly referred to as the 'Macau Scam', victims are contacted by an 'insurance agent' demanding that they pay for premiums that they have apparently signed up for. When these claims are disputed, the victims would be put in touch with so-called policemen as a pressure tactic until credit card information has been provided.

The police have been working relentlessly to eliminate such syndicates but the danger is still very real. In some cases, criminals work alone, once again posing to be insurance agents trying to get you to buy fake insurance policies that may seem almost too good to be true (red flag!).

When one falls prey to such people, the financial blow doesn't come only in the form of the inability to make an insurance claim. If you're caught driving with a fake insurance policy for your vehicle, you would most likely be charged as if you're driving without insurance which is an offence here in Malaysia. The fine can go up to a hefty RM3,000 and your driving licence could be at risk.

So what can we do about it?

(Photo Credit: IMDB)

Due diligence. Something the ferry company in the movie didn't do when they switched over to the cheaper insurance alternative. Look up the companies and check for their certifications, verify that these agents you're talking to are from the companies they claim they're from, and search online to see what others say about them.

Alternatively, you could get a trusted third-party platform such as Motorist Malaysia to navigate through these murky waters and get you the best price for your vehicle insurance while we're at it! Just fill in your contact details down below and we'll get to you promptly!

Read more: The New Car Smell: Pleasure or Poison?