Crime & Courts

Insurance fraud syndicate exposed: Murder for policy payouts [WATCH]

JOHOR BARU: Police have uncovered a chilling insurance fraud scheme where "agents" identify policyholders living alone, make premium payments without their knowledge, and then kill them to claim life insurance payouts of up to RM500,000.

The scheme came to light following the murder of a 38-year-old man on Jalan Senai-Seelong around 4.40am on May 6.

Johor police chief Commissioner M Kumar said that while the death was initially reported as a fatal accident, further investigation revealed a sinister plot.

"The victim, reported to have been hit by a lorry, was actually crushed and hit by suspects using two cars and a motorcycle. When he survived, he was beaten and left on the road, where a passing lorry ultimately struck him, resulting in his death," he said at a press conference.

The syndicate's method involved forging the victim's signature to obtain an insurance policy and appointing a beneficiary unknown to the victim.

Once the policy was approved, they planned and executed the victim's murder to stage it as a fatal accident, ensuring the insurance claim could be made.

Eight local men aged 23 to 49 have been arrested, with four having prior criminal records.

Police have also confiscated the victim's insurance policy and three vehicles used in the crime.

"The case is being investigated under Section 302 of the Penal Code.

"Four suspects were charged in court on June 19, while others were released on bail. We are actively tracking several more suspects who remain at large," he added.

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