Page 9 - MODULE1_Insurance Introduction_CHA

claim. Difficult times lead to looking for a quick way of making

money and that is when the morals of an individual actually get

tested. If these frauds are not detected honest customers are

the ultimate losers as it is they who will have to bear a high

premium.

The surge in Insurance Frauds can also be attributed to declining

moral and ethical standards in business and the desire to make

quick money. Public attitude that relate, frauds to victimless

crime or terming them as white collar crime adds to the growing

numbers. The growth in the number of frauds is also fuelled by

the fact that Indian laws are not strict towards fraudulent

elements. The only negative side is not getting the claim. Since

legislations are not enforced rigidly, it encourages these

elements to keep trying to commit insurance fraud. Insurers are

also at some fault for not attempting to take the identified

fraudsters to task.

Frauds are menaces which have to be dealt with an iron hand.

They slowly corrode the very fabric of insurance.

There have been some bizarre cases of fraud happened, like

unsold goods going up in fire, health claims in non-existent

hospitals, non-existent drives causing accident in TP claims etc.

9