Sunday, January 31, 2010

Mum and paralysed son cheated of insurance payout

The Star Malaysia Thursday January 21, 2010

By NELSON BENJAMIN


JOHOR BARU: A mother, whose nine-year-old son was paralysed from the waist down in a road accident in 1992 was awarded RM250,000 in insurance damage by a court.

But her lawyer gave her only RM40,000 and allegedly kept the rest. Police are now looking for the lawyer.

The female lawyer is said to have paid her client only a part of the insurance payout about 18 years ago.

It is learnt that a police report was only lodged recently after the woman discovered that the lawyer, who had kept more than RM120,000 purportedly to file for an appeal, had not done anything.

Sources said the lawyer had told the mother that she had placed about RM17,000 in Amanah Raya so the boy could only withdraw the money when he reached the age of 21.

However, the mother got a shock when, after her son turned 21, the public trustee informed her that no such deposit was ever made. She then lodged a police report and a complaint with the Bar Council.

It is learnt that out of the total insurance payout, the woman only received 16% while the rest had been kept by the lawyer, claiming that it was for legal fees, the Amanah Raya deposit and costs to file for an appeal.

Police investigations showed that the lawyer has since disappeared and that the firm closed down several years ago.

When contacted, Johor Baru South OCPD Asst Comm Zainuddin Yaacob confirmed the case and said investigations were being carried out under Section 409 of the Penal Code for CBT.

If convicted, the lawyer faces a jail term of between two and 20 years, whipping and a fine.

"We are looking for this lawyer to assist in our investigations, he said, appealing to those with information to contact the police hotline at 07-221 2999.

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