The General Insurance Council (GIC), which is an association of non-life insurance companies in India has decided to put up a database of suspected cheats and frauds. This will help insurers to stay alert if the suspect is noticed in another claim. It is also an indication of the powers obtained by the council as a self-regulatory organization (SRO) as per the new legislation. This council now features five outside members namely, one representative from a third-party administrator, one surveyor, one agent's representative, one policy holder representative and one eminent person, as nominated by the IRDAI.
Cases where the insurance company has reasonable doubt of an attempt to fraud will be a part of the database. The database will also comprise of hospitals, auto garages and nursing homes that are doubtful with regards to inflated or fake claims.
According to Mr. R Chandrasekaran, Secretary General of GIC, "This is an entirely confidential list that will be shared only among insurance companies. We are not even outsourcing this, but managing this ourselves. The effort is under way and should be operational in a month or two."
He also stated that the council is adept in managing data in-house as it is already involved with de-duplication of claims for Pradhan Mantri Suraksha Bima Yojana (PMSBY).