Page 157 - Risk Management in current scenario

been large claims due to such events, in the recent rain in Mumbai rain,
many general insurance Companies have faced unanticipated claims due
to rain in 2017 monsoon.

The other risk that may increase number of claims fraud risk. The fraud
happen by withholding the information misleading the insurance
company to take the advantage of making early claim or taking the
insurance business on forged document which is not fair price of the
insurance. This may happen due to various reasons such as
misrepresentation of facts, forgery and tempering with the documents,
bogus business by sales force, mis-selling which does not meet customer's
need, using the nexuses between doctors and medical centers. Such
frauds are very much prevalent in the insurance sector.

One of the fundamental principles on which the entire insurance business
has its foundation is "utmost good faith", where customers and insurance
company do not withhold any information and have full trust in each
other. Because fraud is a deliberate attempt by the interested party, it is

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