Taking action against insurance fraud together – ThePrint – ANIPressReleases

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A major reason for this paradox is the prevalence of insurance fraud, which costs the Indian insurance industry billions of rupees annually. Fraudulent claims increase loss ratios, leading to higher premium costs and a trust deficit. Such fraudulent practices slow down industry growth and have a negative impact on society.

At the heart of every insurance contract is the principle of “utmost good faith,” which requires all parties to act honestly and disclose relevant information. Fast claims processing and efficient payments help claimants recover from financial setbacks without delays, improving public perception and motivating more people to consider insurance.

However, fraud undermines this trust and affects insurers’ ability to process genuine claims efficiently. Based on previous experiences with fraud, insurance companies have developed systems to track and mitigate fraudulent activity. Nevertheless, fraud consumes valuable operational resources such as manpower and financial reserves.

The most common types of insurance fraud that affect good relationships include:

* Staged Accidents: Scammers intentionally cause accidents to provide false information about vehicle damage and personal injury. For example, some stage a fire accident in their factory when sales decline. Their goal is to recoup losses and profit from insurance claims by staging such an accident.

* Phantom Billing: A fraudulent practice in which healthcare providers increase or charge fees for services that were never provided to the patient. This is often used to exploit insurance benefits, resulting in unfair financial gains for the provider while driving up costs for insurers and patients alike.

* Fake policies: Perpetrators pose as authentic insurance companies to sell fake policies and collect premiums for non-existent or invalid policies. Exploiting the trust of people seeking genuine insurance coverage. Because these policies are fraudulent, they have no legal validity, leaving victims without actual insurance coverage and often unaware of them until they attempt to file a claim.

* Nonexistent Loss: Insured individuals exaggerate loss amounts by intentionally damaging or misrepresenting the condition of the insured property in order to obtain a larger payout.

To avoid falling victim to fraud, customers should follow the following protocols:

* Verify the authenticity of the policy: Request the insurance intermediary’s valid license and confirm its authorization. Visit the official website and contact the company to verify the authenticity of the policy.

* Check Channel: Buying Guidelines from Reliable Sources. When purchasing online, check the insurer’s official website domain as scammers often create fake websites to deceive customers. Check the insurer’s official website domain and use secure “https” websites.

* Use Empaneled Services: Avail the services of Empaneled hospitals and auto repair shops for quality care and discounted rates.

* Opt for secure payment methods: Pay the insurer directly via check, debit/credit card or online to create a clear transaction path.

While vigilant customers can prevent many fraud cases, insurers also use forensics, data analytics and advanced technology to detect and prevent fraudulent activity. In collaboration with the government, regulators and institutions such as the Insurance Information Bureau (IIB), VAHAN, UIDAI, RTO, CCTNS, Court Records and the Medical Council, the industry is actively working to address this issue to improve fraud detection, risk detection and prevention . This integration would allow insurers to receive early claims notifications, resulting in faster settlements and fewer litigations.

By staying informed and cautious, customers can protect themselves from fraud. Together with the industry’s efforts, we can create a safer and more trustworthy insurance environment. Bajaj Allianz General Insurance is committed to fighting fraud and ensuring genuine customers get the protection and benefits they deserve. We strive to build a robust and transparent insurance ecosystem through continuous innovation and collaboration with stakeholders.

As we mark International Fraud Awareness Week 2024, we want to commit to remaining vigilant and working together to combat fraud to ensure a safer and more reliable insurance landscape for everyone.

(COMMERCIAL DISCLAIMER: The above press release has been provided by NewsVoir. ANI is in no way responsible for the contents of the same.)

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