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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.