Let’s fight insurance fraud together – ThePrint – ANIPressReleases

NewsVoir

One of the main reasons for this paradox is the prevalence of insurance fraud, which costs the Indian insurance industry crores of rupees every year. Fraudulent claims result in higher claims ratios, leading to higher premium costs and a trust deficit. Such deceptive practices stifle the growth of industry and negatively impact society.

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

However, fraud undermines this trust and impedes the ability of insurers to effectively process genuine claims. Given past experiences with fraud, insurance companies have developed systems to monitor and prevent fraudulent activity. However, fraud consumes valuable operational resources such as labor and financial reserves.

Some of the common types of insurance fraud that affect good relationships include:

* Staged Accidents: Fraudsters deliberately stage accidents to file false claims for vehicle damage and personal injury. For example, some may start a fire in their factory when income declines. They seek to recover losses and benefit from insurance claims by faking such an accident.

* Phantom billing: A fraudulent practice in which health care providers overcharge or charge for services that were never provided to the patient. This is often used to exploit insurance benefits, resulting in unfair financial gain for the provider while increasing costs for both insurers and patients.

* Fake policies. Fraudsters pose as genuine insurance companies, selling fake policies and collecting premiums for non-existent or invalid policies. a violation of the trust of people seeking genuine reporting. Because these policies are fraudulent, they are unenforceable, leaving victims without actual insurance and often unaware of it until they try to make a claim.

* Nonexistent Damage: Insureds exaggerate claims by intentionally damaging or misrepresenting the condition of insured property in order to obtain a higher payout.

To avoid becoming a victim of fraud, the client must follow the following protocols:

* Verify the authenticity of the policy: ask for a valid license of the insurance intermediary and confirm his credentials. Visit the official website and contact the company to verify the authenticity of the policy.

* Check the channel: rules for purchasing from trusted sources. When purchasing online, check the domain of the insurance company’s official website, as scammers often create fake websites to deceive customers. Check the domain of the insurance company’s official website and use secure “https” websites.

*Use Empaneled Services: Take advantage of empaneled hospitals and auto repair shops for quality care and discounts.

* Choose secure payment methods: Pay the insurer directly by check, debit/credit card or online to create a clear transaction trail.

While vigilant customers can prevent many frauds, 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 Insurance Information Bureau (IIB), VAHAN, UIDAI, RTO, CCTNS, Court Records and Medical Council, the industry is actively working to address this issue to improve fraud detection, risk identification and prevention . . This integration will allow insurers to receive early notification of claims, leading to faster settlements and reduced litigation.

By staying informed and careful, customers can protect themselves from fraud. Together with industry efforts, we can create a safer and more trustworthy insurance environment. Bajaj Allianz General Insurance is committed to fighting fraud and ensuring that genuine customers receive the protection and benefits they deserve. We are committed to creating a trusted and transparent insurance ecosystem through continuous innovation and collaboration with stakeholders.

As we mark International Anti-Fraud Week 2024, let us pledge to remain vigilant and work together to combat fraud, ensuring a safer and more secure insurance environment for everyone.

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