INDIA INSURERS CALLS FOR LEGISLATION SPECIFIC TO FRAUDULENT INSURANCE CLAIMS.

Life and general insurers in India have estimated that insurers lose approximately 10% annual revenue to fake insurance claims. To compensate for huge loss of income, insurers besides adopting other methods are also forced to increase in insurance premiums. This increase in insurance premium is being used to fill the gap created due to fraud, instead of being spent on offering more benefits to more customers. Experts have however come hard on insurers raising premiums due to fraudulent claims because of their refusal to share data amongst themselves but relying instead only on their sources of data validation. The India penal code currently lacks law on insurance fraud that has ample teeth to punish criminals so that it becomes a deterant to future fraudsters.

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