The ABCs of Insurance Fraud in India
India is one of the biggest markets for insurance companies across the world. However, it also needs to be understood that operating an insurance business in India is not free from risks. This is because insurance companies in India face an abnormally large number of fraud cases. In fact, it is estimated that the Indian insurance industry loses close to $6 billion to insurance fraud in India. This works out to about 8.5% of all the premiums collected every year.
All types of insurance policies are prone to fraudulent claims. However, a fake claim on life insurance policies is six times more likely as compared to other types of policies.
In this article, we will have a closer look at how insurance frauds happen in India. Then we will also understand the steps that need to be taken in order to prevent these frauds from continuing.
How Do Insurance Frauds Happen?
Fraudsters have become increasingly innovative. Newer ways of cheating the insurance companies are being used almost every day. Some of the most common methods are listed in this article.
How Can Insurance Fraud Be Prevented?
Authorship/Referencing - About the Author(s)
The article is Written By Prachi Juneja and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.