Crash investigators check 800 motor cases yearly

KUALA LUMPUR: Field checks remain the most vital tool in detecting fraudulent motor insurance claims despite advancing technology, said a loss-adjusting firm that handles over 800 cases nationwide every year.

General Adjustment Expertise Sdn Bhd investigation manager Jegatheesan Balakrishnan said each investigator handles about 65 motor cases a month.

Of these, eight to 10 cases involve false or exaggerated claims, he said.

He said 16 investigators handle the cases, comprising four who specialise in car accident investigations and 12 who handle bodily injury claims.

He said the cases included fraudulent or staged damage, ranging from simple "parked and damaged" incidents involving false police reports to complex, staged multi-vehicle collisions.

"In simple cases, motorists hit obstacles such as metal railings or trees and later lodge false reports claiming their vehicles were struck by other vehicles. After checking, we can see that the damage patterns are different," he said.

"In more complicated setups, syndicates or third parties deliberately stage accidents using pre-damaged or mechanically defective vehicles to file fraudulent claims."

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Jegatheesan said some workshops had contributed to fraudulent claims by adding old, pre-existing damage, such as side or rear dents, to a single front-end collision claim.

"Sometimes a workshop will include pre-existing damage. For example, they may claim the vehicle was rear-ended by another vehicle.

"So basically, the damage should be at the rear, but sometimes they will include damage on all sides, left, right and front. In such cases, the damage is inconsistent and requires further investigation."

He said their investigators regularly visit accident scenes for a better understanding of the incidents rather than relying on photos and reports.

"Part of the job is to inspect accident sites, verify impact measurements against vehicle damage, check the surroundings, CCTV footage and interview nearby residents or business operators."

Jegatheesan, who has 20 years of industry experience, said modern vehicle technology, such as post-crash assistance systems and dashcams, provides crucial objective evidence, but artificial intelligence presents new challenges.

"AI makes evidence far easier to tamper with, including manipulated scene photographs and falsified timestamps. That is why taking statements, conducting interviews and detailed chronological cross-checking by investigators are essential."

He said safety features in newer vehicles help facilitate post-crash assistance when motorists call for roadside services.

"So from there, we can gather the information. Dashcams are also helpful because they can be used to identify accidents. This will help us in our investigations to detect any untoward incidents."

Jegatheesan said inflated costs from workshops and disputes over repair costs had drastically reduced.

This, he said, was due to Bank Negara Malaysia's centralised database under the Motor Data Research Consortium Malaysia, which standardised spare part pricing and labour hours directly from car manufacturers.