Now Reading: Insurers crack down on motor third-party claim fraud
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Insurers crack down on motor third-party claim fraud
Non-life insurers are stepping up action against motor third-party fraud, which industry executives say is becoming widespread. Go Digit General Insurance secured a Madras High Court order on July 29 to appoint…
The Story in Brief
Non-life insurers are stepping up action against motor third-party fraud, which industry executives say is becoming widespread. Go Digit General Insurance secured a Madras High Court order on July 29 to appoint a special investigation team across Tamil Nadu to probe fraudulent claims, including fake accidents, forged policies, and fabricated injuries. The court also directed police to collect call detail records and initiate criminal proceedings.
Industry executives say the trend is adding pressure to an already strained segment. The Times of India reports that insurers are also increasing provisions after a recent Supreme Court judgment introduced compensation under a new head, loss of domestic care, based on a monthly income of Rs 30,000 with periodic revisions. Krishnamoorthy Rao, MD and CEO of Generali Central Insurance, noted that one issue is the conversion of non-road traffic accident claims into motor accident claims.
The Indian Opinion
The narrative that insurance fraud is a victimless crime is wrong. Every forged claim pushes up premiums for honest policyholders. But the industry's own slow claims processing and opaque settlement practices also feed public cynicism. The Madras High Court's order for departmental action against complicit officials is a test: will insurers clean their own house, or only chase external fraudsters?
Source: timesofindia.indiatimes.com
This story was synthesised by AI from the source linked above.
