The Real Cost of Silence: A Lesson in Insurance Disclosures

Imagine this: A family, grieving the loss of their father, Jachiswaran, applies for the insurance payout he carefully secured to protect them. The policies promised financial security—over RM1.5 million. But instead of receiving the support they were counting on, the family faces a harsh reality: the claim is denied.

Why? Because Jachiswaran didn’t fully disclose everything when he signed those policies. A 2015 road accident left him with severe injuries, including a skull fracture that required a week in the ICU. He thought he had fully recovered. It seemed irrelevant. Why mention something that was in the past, something he overcame? He left it out.

And there were other inconsistencies. In some policies, he declared himself as a business owner earning RM12,000 a month; in others, a store manager making RM15,000. But his real income? It was RM6,000, as his employer later confirmed. The insurance company’s investigation uncovered these discrepancies, and suddenly, those policies became worthless.

But the story didn’t end there. During the investigation, the insurance company found another shocking detail: forged signatures. The signature on the proposal form for one of the key policies, didn’t match Jachiswaran’s known handwriting. The company brought in handwriting experts, and their conclusion? The signature was not his.

This is what happens when you don’t disclose everything—or when things aren’t done in good faith.

Insurance isn’t just about signing on the dotted line; it’s about truth. It’s about making sure every piece of information is accurate—your health, your income, even your signature. Because when something is left unsaid, or when a form is signed with false information, the cost of silence and dishonesty can be devastating.

In this case, MCIS Insurance, after conducting their investigation, repudiated the claims under the policies. They cited non-disclosure of medical history, misrepresentation of income, and forgery—grounds that allowed them to void the contracts entirely. The family didn’t receive the money they desperately needed, and all because of what wasn’t shared—or worse, what was falsely presented.

But here’s the thing—this could have been avoided.

This is where the role of the insurance agent becomes crucial. In this story, the agent who sold the policies could have done more. It’s not enough to push for a sale and get the signature. A responsible agent must ensure the client knows the importance of full disclosure. It’s their duty to explain, guide, and make sure no detail is left behind. Because a failure to do so doesn’t just harm the company—it harms families, people who rely on these payouts to survive.

The truth is, insurance companies do their homework. They will cross-check medical records, investigate income statements, and even verify signatures on forms. And when they find something wrong, they have every right to refuse the claim.

Here’s what we can learn from this case:

Disclose everything, no matter how small it seems. Whether it’s a past accident, an illness, or your earnings—don’t leave anything out. And certainly don’t forge anything. Your family’s future depends on it.

Insurance agents: Be more than just salespeople. Your clients trust you to protect them. Make sure they know their responsibilities. A thorough conversation about disclosures could be the difference between financial security and heartbreak.

Insurance is a promise. But that promise only holds when it’s backed by full truth.

Don’t let your family face the devastation of a denied claim because of something that was left unsaid—or a signature that wasn’t your own.