Insurance industry faces a peculiar problem. The Indian Penal Code does not define insurance frauds making insurers difficult to find lawyers to take up their case. The fraud prevention service will help them identify potential fraud at an early stage and minimise their losses.
Life Insurance companies who have joined Experians closed user group for detection of insurance frauds will share with Experian any data relating to new policy proposals and claims. The information is analysed using various parameters to detect a potential fraud. Among others, the Experian solution helps to identify identity thefts which account for 77% of fraud cases in India.
Under Section 45 of the amended Insurance Act in 2014, life insurance companies cannot refuse a death claim on the ground of mis-statement of facts or deliberate suppression of certain facts after three years of the policy coming into effect provided the premiums have been paid regularly.
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