Page 10 - MODULE1_Insurance Introduction_CHA

Over the years with advancement in technology there is a new

trend of frauds i.e. generation of forged policy documents.

These forged documents are near perfect and surface only when

the customer intimates a claim. By then, the fraudsters make

quick bucks and vanish from the scene in no time. You will learn

more on such frauds in different lines of business which were

unearthed by our team in the following modules.

As a result of the undue claims made by the fraudsters, the

percentage of fraud in some major lines of business has

increased phenomenally as also the sophistication and boldness.

What began as exaggeration of claims by a few thousands has

now risen to complex and seemingly genuine claims worth over a

few million USD/ Crores of rupees. Such leakage (losses that

occur due to inefficient systems/ people) in claims, if went

unnoticed, will become extremely difficult to manage and

insurers will have no alternative but to pass the burden to the

other, honest customers.

The growing number of frauds has become a concern for all

stakeholders. The regulator has issued circular seeking details of

frauds and would be monitoring them on regular basis. At the

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initial phase, the IRDA has asked all the insurers to put a system

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Insurance Regulatory & Development Authority, India.
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