Kathmandu. The insurance industry in neighboring India is growing rapidly. However, at the same time, a serious challenge is also growing. That is, insurance fraud.
The problem of insurance fraud is not only weakening companies financially but is also forcing honest customers to pay increased premium rates. Many cases of fraud are coming to light in the insurance sector in India. 86 percent of the insurance fraud cases in India are related to the life insurance sector. This is almost 6 times more than the fraud in the non-life insurance sector.
According to statistics, the Indian insurance industry has to bear losses of more than Rs 3 trillion every year due to various types of fraud incidents. This means that companies lose 8.5 percent of their total revenue due to insurance fraud.
According to Nitin Mehta, head of marketing at Bharti AXA Life Insurance, insurance fraud occurs when a person knowingly or falsely tells a lie to get an advantage or benefit that he is not entitled to. “As the pace of digitalization increases and people prefer to work from remote locations, fraudsters are eager to take advantage of this weakness,” he said. –Agency
