The fiery fallout of car debt
Fast forward just two years, and the car's value plummets to RM180,000, but you still owe the bank the remaining RM230,000.
If you sell the car, you're still RM50,000 short.
You lose the car, but you will still be in debt.
For some, the pressure can be too much to bear, and that's where something unscrupulous unfolds.
For a fee ranging between 15% and 20% of the expected insurance payout, desperate drivers can hire a runner to 'handle' the problem.
The solution? The car is set on fire, pushed into a ravine, or stolen and chopped up – all made to look like an accident or theft.
'Some syndicates do this on a large scale,' said a source.
The source said such groups offer 'solutions' to those stuck in underwater loans.
'They even bribe mechanics, workshops, or tow truck drivers to help fake the damage,' the source added.
Owners will then make an insurance claim by declaring that their car was stolen or that it was destroyed in an accident.
If the insurer accepts this, the market value of the vehicle will be paid.
The payout then goes to the bank, which writes off the rest of the loan or claims it from the borrower, depending on the policy taken.
In this situation, the borrower gets away with not paying the remainder of the loan or at least delays it.
Vehicle Theft and Accident Reduction Council (VTAREC) coordinator Mas Tina Abdul Hamid said it is possible for individuals or syndicates to attempt a hard fraud scheme involving vehicles.
This is done by staging a vehicle theft, setting the vehicle on fire, arson or dismantling it to claim a Total Loss Payout.
'Insurance companies and Takaful operators are well aware of such fraud and have developed a robust detection method and powerful tools to prevent it.'
She said most of these fraud tactics no longer work, especially when it comes to burnt vehicles.
'Any sign of dishonesty on the part of the vehicle buyer can lead to claim denial, policy cancellation and criminal charges.'
According to figures from the General Insurance Association of Malaysia, some 47,325 private vehicles were declared a total loss out of more than three million accidents reported between 2022 to 2024.
Also for the same period, some 4,093 motorcycles and 2,727 commercial vehicles were declared a total loss.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
24 minutes ago
- The Sun
Insurance agent pleads not guilty to stalking, defaming ex-wife
MELAKA: A 35-year-old insurance agent pleaded not guilty today in two separate courts to five charges involving offensive communication, criminal intimidation, and defamation against his ex-wife. Muhamad Akmal Helmi Mat Sirat was accused at the Sessions Court of three counts of posting offensive content on Facebook intended to harass his ex-wife, Masura Mustafa, 40, between June 30 and July 4. The charges fall under Section 233(1)(a) of the Communications and Multimedia Act 1998, which carries a maximum penalty of RM50,000 fine, one year in jail, or both. At the Magistrate's Court, he faced two additional charges for repeatedly following and intimidating the victim at Hospital Putra Melaka and a furniture shop on July 7 and 23, as well as posting a defamatory statement on Facebook on July 4. These charges fall under Sections 507A and 500 of the Penal Code, with potential penalties of up to three years' imprisonment or fines. Judge Haderiah Siri at the Sessions Court granted bail at RM15,000 for all three charges, with conditions including no contact with prosecution witnesses and monthly police reporting. Magistrate Sharda Shienha Mohd Suleiman set bail at RM6,000 for the Magistrate's Court charges, with weekly reporting required. Both courts scheduled the next case mention for Aug 26. Deputy public prosecutors Wardah Ishhar and Syaza Nur Sharif represented the prosecution, while the accused was defended by lawyer Haziq Aizuddin Subhi. - Bernama
Borneo Post
24 minutes ago
- Borneo Post
14 immigration offenders from Pakistan jailed, fined
KOTA KINABALU (July 30): Fourteen Pakistani men were jailed and fined by a Sessions Court here for separate charges under the Immigration Act. Rahat Khan, Khan Junaid, Aamir Khan, Ali Shahab, Ahmad Uzair, Hassan Nawab, Shams, Inayat Ur Rahman, Irfan Khan, Said Nawab, Muhammad Osama, Sajid Khan, Irshad Muhammad and Ali Niaz had pleaded guilty to their charges before judge Hurman Hussain. Nine of them – Rahat, Khan, Hassan, Irfan, Said, Muhammad, Sajid, Irshad dan Ali Niaz – admitted to overstay in Sabah after their passes expired. Rahat and Khan were jailed for 12 and six months' jail respectively. Hassan was fined RM12,000, in default, 12 months' jail while the others were fined RM10,000 each. If they failed to pay their fines they will be jailed for between six and 12 months. Ali was fined RM3,000, in default, four months behind bars, Aamir was sentenced to four months' imprisonment while Ali Shahab, Shams and Inayat were each fined between RM3,000 and RM5,000. They had entered the state illegally. Ali Shahab and Ahmad also received RM500 fine, in default , three months' jail each for violating their social visit passes. The offences were committed in Penampang, Menggatal and Kota Belud.
Rakyat Post
37 minutes ago
- Rakyat Post
14-Year-Old Student Pleads Guilty To Punching Teacher In Viral Video Case
Subscribe to our FREE A 14-year-old student who went viral for punching his teacher has pleaded guilty at the Magistrate's Court in Kajang, Selangor, today (30 July). The Form One transition student admitted to causing injury to a 29-year-old male teacher at a secondary school in the district on Monday (28 July). The case was heard behind closed doors since the accused is a juvenile offender. Magistrate Fatin Dayana Jalil set 11 September as the sentencing date, pending a moral report from the Social Welfare Department. Legal Battle Over Bail The teenager faces charges under Section 323 of the Penal Code for voluntarily causing hurt. If convicted, he could face up to one year in prison, a fine of up to RM2,000, or both. Defence lawyer S. Priyalatha appealed for a low bail, emphasising that her client is a juvenile still attending school. However, Deputy Public Prosecutor Muhammad Syafiq Mohd Zulbahrin suggested a bail of RM5,000, noting the case's serious nature and the public attention it had attracted after going viral on social media. Police Confirm Details of Incident According to an official statement from Kajang District Police Chief ACP Naazron Abdul Yusof, the teacher filed a police report at approximately 7:15 PM on the day of the incident. Police investigation revealed that the confrontation began when the teacher reprimanded the student for skipping physical education class. The student, who should have been in the field, became upset when confronted by the teacher. The situation escalated when the disgruntled student began struggling with the teacher, eventually threatening and punching the educator in the face. Several other teachers and students present in the school compound witnessed the assault. At the same time, police advised school students to always comply with school regulations and avoid engaging in actions that could jeopardise their future. Anyone with information regarding the incident is encouraged to contact Inspector Mohd Amirul Abd Wahab, the investigating officer, at 013-5495236 to assist with further investigations. Public Outcry and Concerns The incident, which was recorded and shared on social media, has led to widespread concern about discipline in schools and student-teacher relationships. The fact that such an incident was Questions are being raised about the factors that lead to such confrontations between students and educators, although investigations into the full circumstances surrounding the incident continue. Public calls have also emerged suggesting that the student should be sent to Parts of this story have been sourced from Share your thoughts with us via TRP's . Get more stories like this to your inbox by signing up for our newsletter.
