The use of theory of reasoned action in understanding customers intentions to commit motor insurance fraud

This aims of the study is to examine customers’ intentions in committing motor insurance fraud. The objective is to determine the relationship between individual attitudes, subjective norms and tendencies of gender on intentions to commit motor insurance fraud. The sample for this study consisted of 413 teachers from five selected schools in Petaling District. Data from the respondents were collected by using the questionnaire. The differences of customers’ intention on committing motor insurance fraud amongst genders were analyzed using t-test. Correlations and multiple regression analysis were used to determine the relationship between independent and dependent variables. Results from the study showed that males have higher intentions to commit motor insurance fraud compared to females. It is also found that there is a significant positive relationship between subjective norms and attitude towards customers’ intentions to commit fraud (r = 0.28, p < 0.01). Findings from this research is important for insurance industry and Bank Negara Malaysia to understand the customers’ behavior and to adhere a strategic planning in solving problems relating to motor insurance fraud. Besides, it is also important for the benefits of customers who are indirectly victimized by premium increment, due to insurance fraud issues.