Saturday, 3 December 2016

“the biggest insurance scam in Sarawak”?

Article in The Star: "Shake-up at Gibraltar BSN"

Some snippets (emphasis mine):

A management shake-up has occurred at Gibraltar BSN Life Bhd following alleged multi-million insurance investment fraud cases at the life insurance company.

Dubbed collectively as “the biggest insurance scam in Sarawak” by media in Sabah and Sarawak, the cases, which came to light late last year, allegedly involved
Gibraltar BSN agents collecting insurance premiums amounting to millions from over 150 customers for policies that did not actually exist.

According to reports, the customers, mostly from Sibu, Sarawak, were enticed by “returns offered of between 8% and 14% per annum”.

In some cases, there were also allegations of misappropriation of client payments.

It is understood that the insurance agents involved are no longer with the company.

Gibraltar BSN is a joint venture (JV) between the American-based Prudential Financial, Inc (PFI) and Bank Simpanan Nasional (BSN), a statutory body under the Finance Ministry.

PFI has a 70% stake in the JV, with BSN holding the remaining 30% interest.

Gibraltar BSN did not respond to StarBizWeek queries on whether it had or is being investigated by the authorities and whether there had been any action taken against it so far but said that there has been a change in top management of the company in recent months.

This sounds pretty serious, hopefully the enforcement agencies will quickly take appropriate action.

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