Page 31 - Insurance Times November 2021

of falling pray in to this trap. This unwanted process gets complete infrastructure and equipped with well trained
easier to execute with the help of intermediates in the form honest manpower, who are sincerely dedicated towards the
of surveyors, auto dealers, business procurement agencies cause. Stress must be laid on granting them adequate
including agents, brokers, advocates etc. administrative powers rather than empowering them with
vast jurisdiction. Such credible caretakers must not succumb
Initially misguidance and wrong commitments by our to undue tactical pressure of their governors for petty
marketing forces, easier way of getting claims that too benefits for goofing up the facts that send wrong message
inflated one by our brokers, personnel petty gains and to the masses and encourage law breakers.
favours by our surveyors and loss assessors, considering only
development of their own business by auto tie up dealers Other Miscellaneous Channels
at the cost of insurance company, getting enhanced claim
Typical miscellaneous actions prevailing in Indian insurance
amounts by legally misrepresenting in various courts of
sector , which can be avoided, also encourage corrupt
compensation are some of the main examples of corruption
practices causing loss to the profits of organization and
engulfing the process of claims portfolio in insurance sector.
ultimately affects the financial heath of society. Practice of
exchange of gifts, on various festive occasions, primarily
Insurance companies often remain helpless in dealing with
created for this purpose only under the garbage of retaining
their bulk portion of their majority of claims pertaining to
business prospect, involve huge money, both through
motor business , which are settled and disposed by their
legitimate and illegal means, end up in corrupt practices due
auto tie up dealers right at dealer point, primarily after
to their illegal unprocedural procurement.
obtaining concurrence from surveyors satisfying the insured,
without involving insurance companies in the process of
Similarly official tours, which are avoidable, particularly
finalization of this claim amount, who at the end of the day
undertaken by the executives of higher management to
simply turn as good pay masters. Similarly, the quantum of different places all across the country or even abroad, simply
remaining claims emanating out of non motor business
result in the exchange of pleasantries through hidden form
portfolio, are usually settled amicably by the surveyors and
of undeclared gifts, also generate a different form of
the insured itself, without taking consent of insurance
corruption, ultimately causing huge loss to the insurance
companies, who latter on in connivance with insured, tend company.
to justify and finally recommend such claims amount to the
insurer for their payment.
Conclusion
Equally judicial partners of insurance companies instead of Conclusively all related agencies need to identify the
defending their job provider, again in connivance with those seriousness of this malignancy and establish a connect
litigants and claimants approaching prevailing between the customers and the employees including third
compensation seeking judicial system, by misrepresenting part intermediaries for not only to expose this menace
the facts suiting the claimants, finally resulting loss to the completely at the grass root level but to create sufficient
exchequer. Allowing such prevailing practices of financial knowledge about its consequences.
benefit in claims aspect of insurance sector, all happening
under the nose of government of the day and its regulator, Together with the management, employees at the
breed the chances of mal practices that ultimately cause operational level and the insured public need to change the
corruption from its inception of such operations. mindset, feel consciously responsible and fight for creating
much needed vigilance awareness for the good governance
Management of insurance claims need to be serious and of our organization which in turn proves beneficial for our
true in its commitment towards the implementation of anti society, to strongly fight against corruption menace, so as
corruption measures at all levels of its settlement. It must to rebuild our insurance companies for generating profits,
regularly sensitise its claim handlers and intermediaries like at least for their future survival. Compromising with our
agents, brokers, surveyors, arbitrators, advocates besides moral and ethical values by succumbing to this evil for our
claims dealing employees and office incharges too, petty gains, destroy us and our organisation, which we can
continuously throughout the year. Vigilance departments not afford at any cost under ongoing rapid changing global
need to be involved in reality and needs be supported with scenario. T

The Insurance Times, November 2021 31