Bhubaneswar: ICICI Lombard General Insurance Company, one of the leading general insurance companies in the country, has been in constant pursuit of keeping in control and spreading awareness on the growing concerns of the rise in fraudulent claims in motor third party insurance encountered by the non-life insurance industry in India. The insurance industry has been increasingly facing the problem of manipulated claims which ultimately affects the interest of the policyholder.
ICICI Lombard has been the front runner in detecting the claim manipulations through active investigations and forensic. In an event in the state, the firm has highlighted instances of claim manipulations and the consequential actions over the same. Similar issues have been observed by the insurance industry in the states of UP, Gujarat, Maharashtra, Odisha, Assam, Rajasthan and Delhi amongst others. During the course of claim investigation by the company over the last three years, multiple claim manipulations in the state of Odisha were observed, out of which 21 claims amounting to Rs.2.05Crs were referred to Economic Offence Wing (EOW) by the company for investigation. Separately a total of 13 claims amounting to Rs1.15Crs have also been referred to the crime branch. The trend of claim manipulation revealed, when such claims indicated implant of motor vehicles, drivers apart from other fabrications. Motor third party is an insurance cover where the premium is determined by the Insurance regulator of the country (IRDAI) on the basis of claims reported under the policy for the industry. Incidence of such manipulated claims increases the claims thus the premium to be borne by the innocent policyholders. It is the responsibility of insurance companies to ensure that claim compensation is paid to the deserving victims of road accidents or their dependents. To this end ICICI Lombard ensures that every motor third party claim is thoroughly investigated and reported to the appropriate enforcement agencies in case any manipulation is indicated.
At the event, Loknath Kar, Chief Legal & Principal Compliance Officer, ICICI Lombard General Insurance Company Ltd, stated, “Unless claim manipulation is uprooted, motor insurance premium will become unaffordable in the country. At ICICI Lombard, we consider fraud and manipulation as a serious threat and endeavor to work towards curbing such practices. The rise in fraudulent claims needs to be curtailed so that genuine customers do not face any negative impact in terms of higher premiums. We are thankful to Odisha Police to have recognized the intensity of the issue and for promptly taking up investigation of such matters. As an industry, it is our responsibility to reinstate the trust among our customers by spreading awareness about such malpractices. Industry-wide efforts on this front will empower consumers with the knowledge of such practices and prevent them from falling victim to the same.”
In an effort to articulate the issues faced by the industry, ICICI Lombard highlighted the following corrective measures that have been adopted across the country to curb such illicit practices:
• Special Investigation Team has been constituted by the government/judiciary in the states of Uttar Pradesh, Rajasthan, Delhi etc. and is in the process of being constituted in other states as well• Insurance Information Bureau has established a common platform for all insurers to conduct hygiene checks through access to the database of RTOs across the country• Information about habitual offenders are being shared among insurers• Cross checks are conducted on drivers, witnesses and claimants through the database created by the company and through various authentication bodies.• Spreading awareness amongst consumers about their rights and entitlements
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