General insurers are stepping up efforts to detect and crack down on fraudulent motor third-party insurance claims as the segment faces rising losses from higher compensation awards and a growing number of uninsured vehicles.
The move comes amid concerns over claims involving fake accidents, forged documents and fabricated injuries. A recent order by the Madras High Court has also given insurers a fresh push to seek stronger action against those involved in such fraud.
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Go Digit General Insurance secured a July 29 order from the Madras High Court for the appointment of district-level special investigation teams across Tamil Nadu to probe suspected fraudulent insurance claims, reported The Times of India (TOI).
The court has directed authorities to investigate claims involving fake accidents, misrepresentation, forged insurance policies, fabricated injuries and false medical reports and bills. Police have also been asked to collect relevant evidence, including call detail records, during investigations.
The court further directed that criminal proceedings be initiated against those found responsible. Departmental action has also been ordered against officials found to have facilitated fraudulent claims or failed to prevent them.
The issue is gaining attention across the insurance industry as motor third-party insurance already faces pressure from rising claims costs.
Krishnamoorthy Rao, MD and CEO of...
General insurers are stepping up efforts to detect and crack down on fraudulent motor third-party insurance claims as the segment faces rising losses from higher compensation awards and a growing n...