Falah: Insured often go uncompensated for losses, infringing their rights

Ibrahim Falah, Inguraidhoo MP and leader of the ruling PNC’s parliamentary group, stated on Monday that insurance companies often fail to compensate the insured for their losses, infringing their rights.

While debating the report formulated by the Public Accounts Committee on the Insurance Bill during Monday’s parliamentary sitting, Falah said there are matters that insurance companies need to consider when issuing insurance for various needs, such as medical care.

He underscored that there are often circumstances where the rights of the insured are infringed.

“Often, insurance companies use some excuse to relieve themselves of the rights they [insured] are entitled to, and the party at loss do not recover the damages they have incurred,” he said.

The Public Accounts Committee has recommended passing the Insurance Bill.

The government-backed bill sponsored by Mahibadhoo MP Ahmed Thoriq was sent to the floor for approval one year after the bill was sent to the committee. Minor changes required to further complete the bill were made during the committee stage.

According to Toriq, the bill is designed to put a legal framework in place regarding licensing, regulating and supervising insurance providers and related parties.

The bill prescribes a fine of MVR 100,000 to MVR 5 million for deliberate misrepresentation of facts with the intent of claiming insurance money.

It also prescribes a fine of MVR 75,000 to MVR 750,000 for obstructing investigations into alleged offenses.

The bill also prescribes a fine of MVR 50,000 to MVR 1 million for acts of insurance fraud that aren’t specified in the bill.