The Insurance Council of British Columbia has fined level 2 general insurance agent, Gurjeet Singh Malhi $2,000. The council also assessed investigation costs of $1,700, and has required that Malhi complete the Council Rules Course through the Insurance Brokers Association of British Columbia, after Malhi admitted he allowed Insurance Corporation of British Columbia (ICBC) transitional documents to leave his presence while authorized signatures were being obtained.
Malhi was first licensed as a level 1 general insurance salesperson in March 2011 before being licensed in October 2016 as a level 2 agent. In October 2018 Malhi met with a client, identified only as DT, when DT purchased a Chevrolet Malibu, attended the agency where Malhi worked, and registered and insured the vehicle in his daughter’s name. Less than a week later, the father also purchased and registered a Nissan Rogue in his daughter’s name. Malhi admits that the daughter, MT, was not present during the transactions.
In both cases, DT told Malhi that his daughter was ill and unable to come into the office, but that she was outside in the car. “DT then took the papers out of the office, ostensibly to be signed by MT. It is believed that DT forged MT’s signature on the documents,” the council’s intended decision states.
The insurance council adds that the misconduct is more egregious because it occurred on two occasions, under the same circumstances, with the same individual, over a short period of time.
MT later became aware that at least one vehicle was in her name after a bank contacted her regarding a loan that was taken out for the Nissan. Eventually both cars were repossessed by different banks when their respective loans when into default.
After receiving a statement from MT, the ICBC prohibited Malhi from conducting Autoplan business for 180 days, a number that was later reduced to three months. The ICBC also issued a one-day basic premium sanction against Malhi’s agency.
“Council has concluded that the licensee failed to engage in the usual practice of the business of insurance by allowing ICBC transitional documents to leave his presence for the authorized signatures, not witnessing the signature of MT or the person who signed the documents on behalf of MT, and then processing the transactions once the paperwork was brought back to him,” the council states. “Council notes that witnessing signatures on insurance documents is fundamental to the usual practice of the business of insurance.”