A new piece of legislation, if approved through parliament, will see fraudulent insurance claims getting officially labeled as a criminal offense. The misconduct still remains among offenses that lack any statutory provisions criminalizing it.
The bill, that seeks to criminalize misrepresentation to acquire insurance money, was submitted to parliament by Mahibadhoo MP Ahmed Thoriq on behalf of the state.
The primary objective of the bill, Thoriq said, is the introduction of procedures for licensing insurance providers and affiliated businesses. The bill also intends to introduce a legal framework to regulate and supervise insurance providers and affiliated businesses.
Insurance providers, or culpable parties may be fined with an amount not exceeding MVR 100,000 for each day for the duration of a dispute or until rectification of errors, the bill’s provisions added.
Insurance providers or similar businesses that attempt to obstruct authorities from inspecting premises owing to allegations could be fined between MVR 75,000 and MVR 750,000.
Moreover, offenses not stipulated in the act may be fined between MVR 5,000 and MVR 1 million, depending on the severity of the offense.