Customer Intention to Commit Motor Insurance Fraud: A Literature Review
DOI:
https://doi.org/10.37134/ibej.vol11.1.4.2018Keywords:
Fraud, Insurance, Motor, Motor Insurance, Theory of Reason ActionAbstract
Fraud in insurance is becoming an interesting issue nowadays among researchers and parties involved in the industries. Increase in numbers of insurance claim leads to unstable and unpredictable operating profit suffered by insurance companies. These claims are believed to include both bogus and authentic claims. Thus, the aim of this study is to examine customers’ intentions in committing motor insurance fraud. The objective is to determine the relationship between individual attitude and subjective norms on intention to commit motor insurance fraud. The sample for this study will be teachers from selected schools in Petaling District, Selangor. Data from the respondents will be collected using questionnaires. Statistical Package for Social Science (SPSS) will be used to analyze the data collected. Specifically, correlation and regression will be used to test the hypothesis. Finding from this study is believed useful for insurance regulator and industry to handle insurance fraud attempts.
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References
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Francis, J., Eccles, M., Johnston, M., Walker, A., Grimshaw, J., Foy, R., Bonnetti, D.(2004). Constructing questionnaires based on the Theory of Planned Behaviour: A manual for health services researchers. Newcastle upon Tyne, UK: Centre forHealth Services Research, University of Newcastle
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Gong, W. (2009). National culture and global diffusion of business to consumer e-commerce. National Culture and Global Diffusion, Vol. 16 No. 1, pp. 83-101.
Ha, H.Y., & Janda, S. (2012). Predicting consumer intentions to purchase energy-efficient products.
Journal of Consumer Marketing, 29(7), 461–469.
http://doi.org/10.1108/07363761211274974
Hassandoust, F. & Perumal, V. (2010). Socio-behavioral factors in virtual knowledge sharing: theory of reasoned action and theory of planned behavior perspective. Virtual Conference on Business and Management, Vol. 2 No. 1, pp. 91-107.
Huesmann, L., & Guerra, N. G. (1997). Children's normative beliefs about aggression and aggressive behavior.
Journal of Personality & Social Psychology, 72(2), 408-419.
Jurkovic, A. (2014). Normative Beliefs as a Mediator between Body Dissatisfaction and Disordered Eating.
Honors Projects. Paper 162.
http: //digitalcommons. iwu.edu/ psych_honproj/162.
Kinard, B.R. & Capella, M.L. (2006). Relationship marketing: the influence of consumer involvement on perceived service benefits. Journal of Services Marketing,Vol. 20,pp.359-368.
KPMG Malaysia. (2013). KPMG Malaysia Fraud, Bribery and Corruption Survey 2013. Retrieved from
www.frank-cs.org/cms/pdf/KPMG/KPMG_Malaysia_Survey_13.1.14.pdf on 12 April 2017.
Lee, B. C. Y. (2012). The determinants of consumer attitude toward service innovation –the evidence of ETC system in Taiwan. Journal of Services Marketing, 26(1), 9–19.
http://doi.org/10.1108/08876041211199689
McDonald, S. & Oates, C.J. (2006). Sustainability: consumer perceptions and marketing strategies.
Business Strategy and the Environment, Vol. 15 No. 3, pp. 157-70.
Miyazaki, A.D. (2009). Perceived ethicality of insurance claim fraud: do higher deductibles lead to lower ethical standards?”, Journal of Business Ethics, Vol. 87 No. 4, pp. 589-98.
Mudzamir Mohamed. (2013). Countering Fraud in the Insurance Industry-:A Case Study of Malaysia. Institute of Criminal and Justice Studies,University of Portmouth.
Nor Salmi, A.Z. & Lim, H.L.(2011). Mengkaji Kesahan Inventori Nilai Integriti Dalam Kalangan Guru-guru Sekolah Rendah. Retrieved 25 June 2015 from
http://education.usm.my/images/docs/MEDC/VOL7/1.pdf
Organ, S., Proverbs, D., Squires, G., Organ, S., Proverbs, D., & Squires, G. (2013). Motivations for energy efficiency refurbishment in owner-occupied housing. Structural Survey, 31(2), 101–120.
doi:10.1108 /02630801311317527.
Patterson, P.G. & Smith, T. (2001). Relationship benefits in service industries: replication in a Southeast Asian context. Journal of Services Marketing, Vol. 15, pp. 425-443.
Pavlou, P.A. & Fygenson, M. (2006). Understanding and predicting electronic commerce adoption: an extension of the theory of planned behavior. MIS Quarterly, Vol. 30 No. 1, pp. 115-143
Ram Al Jaffri Saad & Roszaini Haniffa, (2014). Determinants of zakah (Islamic tax) compliance behavior. Journal of Islamic Accounting and Business Research, Vol. 5 Issue: 2, pp.182-193,
https://doi.org/10.1108/ JIABR-10-2012-0068
Sulaiman Lujja, Mustafa Omar Mohammad, Rusni Hassan, (2016). Modelling public behavioral intention to adopt Islamic banking in Uganda: The theory of reasoned action. International Journal of Islamic and Middle Eastern Finance and Management, Vol. 9 Issue: 4, pp.583-600,
https:// doi.org/10.1108/IMEFM-08-2015-0092
Srite, M. & Karahanna, E. (2006). The role of espoused national cultural values in technology acceptance. MIS Quart, Vol. 30 No. 3, pp. 679-704.
Tennyson, S. (1997). Economic institutions and individual ethics: a study of consumer attitudes toward insurance fraud. Journal of Economic Behaviour & Organization, Vol. 32, pp. 247-265.
Tennyson, S. (2008). Moral, social, and economic dimensions of insurance claims fraud. Social Research, Vol. 74 No. 4, pp. 1181-2.
Tseng, L.M., Kang, Y.M., & Chung, C.E. (2014). Understanding the roles of loss-premium comparisons and insurance coverage in customer acceptance of insurance claim frauds. Journal of Financial Crime, 321-335.
Tseng, L.-M., & Shih, M.-F. (2012). Consumer attitudes toward false representation. Journal of Financial Crime, 19(2), 163–174.
http://doi.org/10.1108/13590791211220430
Vallerand, R.J., Pelletier, L.G, Deshaies, P., Cuerrier, J. P. & Mongue, C. (1992). Ajzen and Fishben‟s theory of reasoned action as applied to moral behavior : A confirmatory analysis. Journal of Personality and Social Psychology, Vol. 62, No. 1, pp. 98-109.
Wright, R. (2007). Developing Effective Tools To Manage The Risk Of Damage Caused By Economically Motivated Crime Fraud (Vol. 14, Pp. 17-27): Journal Of Financial Crime.
Yusuf, O.T. & Babalola, A.R. (2009). Control of insurance fraud in Nigeria: an exploratory study(case study).
Journal of Financial Crime, Vol. 16 No. 4, pp. 418-435.
Zhikun, D., & Fungfai, N. (2009). Knowledge Sharing Among Architects in a Project Design Team: An Empirical Test of Theory of Reasoned Action in China. Chinese Management Studies, 3(2), 130–142.
http://doi.org/10.1108/17506140910963639
International Journal , 32, 68–82.
http://doi.org/10.1108/02610151311305623.
Ajzen, I. (2012). The theory of planned behavior. In P. A. M. Lange, A. W. Kruglanski & E. T. Higgins (Eds.), Handbook of theories of social psychology, 1, 438-459.
Ajzen, I. (1991).The theory of planned behavior. Organizational Behavior and Human Decision Processes, Vol. 50 No. 2, pp. 179-211.
Ajzen, I. & Fishbein, M. (1980), Understanding Attitudes and Predicting Social Behaviour, Prentice-Hall, Englewood Cliffs, NJ
Aydin, S. & Ozer, G. (2005).Customer loyalty and the effect of switching costs as a moderator variable: a case in the Turkish. Marketing Intelligence and Planning , Vol. 23 No. 1, pp. 89-103.
Bank Negara Malaysia (2015). Deputy Governor's Keynote Address at the Insurance Information &
Ratemaking Forum of Asia 2015 (IIRFA) on May 28, 2015. Retrieved on November 23, 2016 from
http://www.bnm.gov.my/index.php?ch=en_speech&pg=en_speech&ac =560&lang=e
Bank Negara Malaysia (2017). Management Expenses for General Insurance. Retrieved on August 15, 2017 from
http://www.bnm.gov.my/index. php?ch=en_publication&pg= en_msb&ac=248&bm&uc=2
Beck, T. & Webb, I. (2003).Economic, Demographic, and Institutional Determinants of Life Insurance Consumption across Countries. The World Bank Economic Review, Vol. 17, No. 1, pp. 51-88.
Benjamin, O. A., & Samson, B. S. (2011). Effect of perceived inequality and perceived job insecurity on fraudulent intent of bank employees in Nigeria. Europe’s Journal of Psychology, 7(1), 99–111.
doi:10.5964/ejop.v7i1.107.
Bernama (2005, July, 20). UiTM EZAccess. Retrieved 13 March 2015, from
http://blis2.bernama.com.ezaccess.library.uitm.edu.my/mainHome Bypass.do
Berita Harian (2010, July 06). Nilai Penipuan Tuntutan Insurans Cecah RM1.74 Bilion. Retrieved 12 June 2016 from
http://www.bharian.com.my/bharian/articles/NilaipenipuantuntutaninsuranscecahRM1.74 bilion/Article/
Bianchi, C., & Andrews, L. (2012). Risk, trust, and consumer online purchasing behaviour: a Chilean perspective.
International Marketing Review,29(3), 253–275.
doi:10.1108/02651331211229750.
Bock, G., Zmud, R.W., Kim, Y. & Lee, J. (2005). Behavioral intention formation in knowledge sharing: examining the roles of extrinsic motivators, social-psychological forces, and organizational climate. MIS Quarterly, Vol. 29 No. 1, pp. 87-111.
Bohner, G. & Wanke, M. (2002), Attitudes and Attitude Change, Psychology Press, Brighton.
Burger, R. & Herstein, R. (2014).The evolution of business ethics in India. International Journal of Social Economics, Vol. 41 No. 11, pp. 1073-1086.
Brinkmann, J. (2005).Understanding insurance customer dishonesty: outline of a situational approach. Journal of Business Ethics, Vol. 61, pp. 183-97.
Brokesova, Z., & Pastorakova, E. (2013). The Relalationships Between Selected Demographic Fators and Acceptability of Consumer Insurance Fraud. European Scientific Journal, 1, 297–304.
Calisir, F., Gumussoy, C. A., & Bayram, A. (2009). Predicting the behavioral intention to use enterprise resource planning systems: An exploratory extension of the technology acceptance model. Management
Research News, 32(7), 597–613.
http://doi.org/10.1108/0140917091096521
Chang, M.K. (1998). Predicting unethical behaviour: a comparison of the theory of reasoned action
and the theory of planned behaviour. Journal of Business Ethics, Vol. 17, pp. 1825-34.
Childers, T. L. & Rao, A. R. (1992). Childers and Hale 1. Journal of Consumer Research, 19, 1–14.Retrieved from
http://int.search.tb.ask.com/search/ Gmain.jhtml
Chuchinprakarn, S. (2005). Application of the Theory of Reasoned Action to Online Shopping. 1–7. Retrieved
from
http://www.bu.ac.th/knowledgecenter /epaper/jan_june2005/supanat.pdf
Crocker, K. J., & Morgan, J. (1998). Is Honesty The Best Policy? Curtailing Insurance Fraud Through Optimal Incentives Contracts. Journal Of Political Economy, Vol. 106, Pp. 355-375.
Edward, O. T., Azitadoly Mohd Arifin, Ainon Basar, Nurul Aida Harun, Norfaezah Mohd Shahren & Faziatul Amilia Mohamad Basir (2017). Risk and Insurance.3rd edition. Shah Alam: McGraw-Hill Education.
European Systemic Risk Board. (2015). Report on systemic risks in the EU insruance sector: The role of the insurance sector in the economy(Vol. Annex 1). Retrieved from
https://www.esrb.europa.eu/pub/pdf/other2015-12-16_esrb_report_annex_1.pdf?e1981f8cd92dc43f89dd154067e2ba49
Financial Service Act (2013). Law of Malaysia. Retrieved from
http://www.bnm.gov.my/index.php?ch=en_legislation&pg=en_legislation_act&ac=221&lang=en . on14 January 2016.
Fishbein, M. Ajzen, I. (1975). Belief, Attitude, Intention and Behavior: An Introduction to Theory and Research, Addison-Wesley, Reading, MA.
Francis, J., Eccles, M., Johnston, M., Walker, A., Grimshaw, J., Foy, R., Bonnetti, D.(2004). Constructing questionnaires based on the Theory of Planned Behaviour: A manual for health services researchers. Newcastle upon Tyne, UK: Centre forHealth Services Research, University of Newcastle
Freedman, D., Kranacher, M., Maguire -krupp, M., Owens, C., Ratley, J., Riley, R., & Wells, J. (2009). Bringing Freud to Fraud: Understanding the State-of-mind of the C-Level Suite / White Collar Offender Through “A-B-C” Analysis. West Virginia University.
Gong, W. (2009). National culture and global diffusion of business to consumer e-commerce. National Culture and Global Diffusion, Vol. 16 No. 1, pp. 83-101.
Ha, H.Y., & Janda, S. (2012). Predicting consumer intentions to purchase energy-efficient products.
Journal of Consumer Marketing, 29(7), 461–469.
http://doi.org/10.1108/07363761211274974
Hassandoust, F. & Perumal, V. (2010). Socio-behavioral factors in virtual knowledge sharing: theory of reasoned action and theory of planned behavior perspective. Virtual Conference on Business and Management, Vol. 2 No. 1, pp. 91-107.
Huesmann, L., & Guerra, N. G. (1997). Children's normative beliefs about aggression and aggressive behavior.
Journal of Personality & Social Psychology, 72(2), 408-419.
Jurkovic, A. (2014). Normative Beliefs as a Mediator between Body Dissatisfaction and Disordered Eating.
Honors Projects. Paper 162.
http: //digitalcommons. iwu.edu/ psych_honproj/162.
Kinard, B.R. & Capella, M.L. (2006). Relationship marketing: the influence of consumer involvement on perceived service benefits. Journal of Services Marketing,Vol. 20,pp.359-368.
KPMG Malaysia. (2013). KPMG Malaysia Fraud, Bribery and Corruption Survey 2013. Retrieved from
www.frank-cs.org/cms/pdf/KPMG/KPMG_Malaysia_Survey_13.1.14.pdf on 12 April 2017.
Lee, B. C. Y. (2012). The determinants of consumer attitude toward service innovation –the evidence of ETC system in Taiwan. Journal of Services Marketing, 26(1), 9–19.
http://doi.org/10.1108/08876041211199689
McDonald, S. & Oates, C.J. (2006). Sustainability: consumer perceptions and marketing strategies.
Business Strategy and the Environment, Vol. 15 No. 3, pp. 157-70.
Miyazaki, A.D. (2009). Perceived ethicality of insurance claim fraud: do higher deductibles lead to lower ethical standards?”, Journal of Business Ethics, Vol. 87 No. 4, pp. 589-98.
Mudzamir Mohamed. (2013). Countering Fraud in the Insurance Industry-:A Case Study of Malaysia. Institute of Criminal and Justice Studies,University of Portmouth.
Nor Salmi, A.Z. & Lim, H.L.(2011). Mengkaji Kesahan Inventori Nilai Integriti Dalam Kalangan Guru-guru Sekolah Rendah. Retrieved 25 June 2015 from
http://education.usm.my/images/docs/MEDC/VOL7/1.pdf
Organ, S., Proverbs, D., Squires, G., Organ, S., Proverbs, D., & Squires, G. (2013). Motivations for energy efficiency refurbishment in owner-occupied housing. Structural Survey, 31(2), 101–120.
doi:10.1108 /02630801311317527.
Patterson, P.G. & Smith, T. (2001). Relationship benefits in service industries: replication in a Southeast Asian context. Journal of Services Marketing, Vol. 15, pp. 425-443.
Pavlou, P.A. & Fygenson, M. (2006). Understanding and predicting electronic commerce adoption: an extension of the theory of planned behavior. MIS Quarterly, Vol. 30 No. 1, pp. 115-143
Ram Al Jaffri Saad & Roszaini Haniffa, (2014). Determinants of zakah (Islamic tax) compliance behavior. Journal of Islamic Accounting and Business Research, Vol. 5 Issue: 2, pp.182-193,
https://doi.org/10.1108/ JIABR-10-2012-0068
Sulaiman Lujja, Mustafa Omar Mohammad, Rusni Hassan, (2016). Modelling public behavioral intention to adopt Islamic banking in Uganda: The theory of reasoned action. International Journal of Islamic and Middle Eastern Finance and Management, Vol. 9 Issue: 4, pp.583-600,
https:// doi.org/10.1108/IMEFM-08-2015-0092
Srite, M. & Karahanna, E. (2006). The role of espoused national cultural values in technology acceptance. MIS Quart, Vol. 30 No. 3, pp. 679-704.
Tennyson, S. (1997). Economic institutions and individual ethics: a study of consumer attitudes toward insurance fraud. Journal of Economic Behaviour & Organization, Vol. 32, pp. 247-265.
Tennyson, S. (2008). Moral, social, and economic dimensions of insurance claims fraud. Social Research, Vol. 74 No. 4, pp. 1181-2.
Tseng, L.M., Kang, Y.M., & Chung, C.E. (2014). Understanding the roles of loss-premium comparisons and insurance coverage in customer acceptance of insurance claim frauds. Journal of Financial Crime, 321-335.
Tseng, L.-M., & Shih, M.-F. (2012). Consumer attitudes toward false representation. Journal of Financial Crime, 19(2), 163–174.
http://doi.org/10.1108/13590791211220430
Vallerand, R.J., Pelletier, L.G, Deshaies, P., Cuerrier, J. P. & Mongue, C. (1992). Ajzen and Fishben‟s theory of reasoned action as applied to moral behavior : A confirmatory analysis. Journal of Personality and Social Psychology, Vol. 62, No. 1, pp. 98-109.
Wright, R. (2007). Developing Effective Tools To Manage The Risk Of Damage Caused By Economically Motivated Crime Fraud (Vol. 14, Pp. 17-27): Journal Of Financial Crime.
Yusuf, O.T. & Babalola, A.R. (2009). Control of insurance fraud in Nigeria: an exploratory study(case study).
Journal of Financial Crime, Vol. 16 No. 4, pp. 418-435.
Zhikun, D., & Fungfai, N. (2009). Knowledge Sharing Among Architects in a Project Design Team: An Empirical Test of Theory of Reasoned Action in China. Chinese Management Studies, 3(2), 130–142.
http://doi.org/10.1108/17506140910963639
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Published
2018-12-01
How to Cite
Mohd Yusof, N. H., & Abd Razak, A. Z. A. (2018). Customer Intention to Commit Motor Insurance Fraud: A Literature Review. International Business Education Journal, 11(1), 40–48. https://doi.org/10.37134/ibej.vol11.1.4.2018
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