Centralised Database to Curb Insurance Claim Frauds
In order to curb fraudulent insurance claims, which are being reportedly made over 500 per day, the Life Insurance Council is considering bringing a monitoring framework for its member. The apex industry body would prepare a centralized database of all policyholders and will be functional from December this year. Fraudulent in an Insurance claim, is easy nowadays, and every single person trying to use this opportunity.
Similar to banks getting information from CIBIL (Credit Information Bureau of India Ltd) about the customers dealing with them, this system will help insurance companies retrieve details of customers and detect any fraud in disclosure and claims by policyholders.
On the sidelines of an event organized by the Indian Chamber of Commerce, secretary-general of Life Insurance Council, Mr. V Manickam said that the council is in the process of shortlisting a vendor who will collate the database aimed to provide a fraud monitoring framework.
In order to shortlist the vendor and to finalize the terms of reference, a meeting has been scheduled by the council.
Fraudulent in an Insurance claim
All 24 life insurance companies operating in India, will sign agreements with the vendor chosen in the meeting, to share all details of the policyholders enabling the system to track policyholders’ details and prevent false insurance claims or duplication of claims.
Similarly, the Life Insurance Council is also considering preparing another database to detect duplicate death claims made under the much-hyped Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). The CIBIL has been authorized to maintain the database in the case. Since the scheme was launched in May this year, it has seen 44 death claims.
As per Mr. Manickam, the database for this particular scheme will go live on July 15. Late, but not enough… in between these days the number of fraudulent was quite higher than usual and to verify these claims or fraudulent has now become the necessity of insurance companies. Once the database takes its place, that every fraudulent will be identified if they move from one company to another company.
