The General Insurance Council of India (GICI) proposes to develop a data bank of fraudulent claims, clearing house and standardisation of policy wordings for commercial policies, after ironing out most of the regulatory issues relating to the non-life insurance industry.
Mr. R. Chandrasekaran, Secretary General of the council said, “Most of the regulatory issues have been sorted out. The foreign direct investment (FDI) limit has been increased to 49%. We have decided to move ahead with couple of initiatives for the collective benefit of the industry.”
There is no official number to gauge the proportion of fraudulent claims. However, it is estimated that approximately 10% claims in the health insurance sector are fraudulent. According to Mr. R. Chandrasekaran, the council outsourced the development of the software for motor and health insurance claims fraudulent data bank and has given it to insurers.
The insurers have to key in the necessary data about claims they think are fraudulent. The data entered will be saved in their system to build a data bank over a period of six months. Insurers who have keyed in the data in the module can access the data bank for their decision making purpose. He also adds that once the data is gathered, a pattern on fraudulent claims could be recognised.
The software module will not be priced and reports reveal that it is expected to go live soon