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insurance policy starts, he performs much more difficult tricks
and takes on more risk. Sunder, consciously, takes on more risk
than before he had insurance because he has reduced his
liability.
The issue of fraud control has gradually been gaining momentum
as a means of keeping down insurance costs. Insurance fraud has
most certainly been around from the very beginning.
Nevertheless, the amounts involved in fraud and the innovative
methods deployed have certainly increased as insurance made
its transition into modern consumer society. The frauds have
also turned from the casual, opportunist attempts to more
hardcore, organized ones!
According to study by KPMG India Financial Services, insurance is
the most vulnerable sector when it comes to fraudulent
activities. In the recent past the losses caused to the insurance
sector due to frauds are over Rs 30,000 crores annually which is
roughly nine percent (9%) of the total estimated size of
insurance industry claims a report by India Forensic Centre for
[1]
Studies .
Over the last 10 years the insurance industry has grown at a
capital annual compounded growth rate (CAGR) of around 20%
[2]
. However with the growth insurance sector has also seen an
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