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Insurance Article

ICICI Lombard Upgrading Fraud Detection To Stem Fraudulent Claims

March 31 2018
Identify Fraudulent Claims Insurance Industry

The rising instances of fraudulent claims is a major concern for the insurance industry. Fraud cases cost not only the insurer but, also the honest people as the rates are increased owing to the losses borne by the companies. In a bid to prevent fraudulent claims from going through, ICICI Lombard is updating its fraud detection capabilities.

The company, which is India’s largest private general insurance company, is taking the help of latest technologies, services of professionals and implementation of forensic techniques for claim verification. For example, in case of a motor claim the insurer checks: hospital records, criminal case records, testimony of witnesses along with verification of accident spots.

The insurer also has empanelled experts who scrutinise fraudulent claims that were made by companies facing financial constraints or similar issues. According to Lokanath Kar, Chief Legal and Principal Compliance Officer, ICICI Lombard, the insurer had filed a petition in the Allahabad High Court regarding fraud in vehicle insurance claims.

Based on this petition, the court directed the Uttar Pradesh government to form a Special Task Force (STF) for probing suspicious claims. Since their formation, the STF has detected 126 cases of fraud with a combined value of ₹230 million. The insurer has also witnessed a large drop in claim intimations, and even some voluntary withdrawal of claims.

Owing to the effectiveness of the UP STF, similar forces have been formed in Odisha, Delhi and Rajasthan; while states such as Gujarat and Karnataka still have pending petitions.

*Source: Business Standard

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