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Deloitte's got the scoop on some insurance shenanigans straight outta India! The Deloitte Insurance Fraud Survey 2023 has revealed a trend and a rise in fashioned fraud within the circle of life and health insurance.

Insurance companies in India are raising their eyebrows as they find themselves caught in a web of trickery. According to the report, a whopping 34% of the health insurance mischief are totally blamed on the digital revolution. A solid 22% of these insurances can be traced back to the fact that people are now dialing in their devious plans from the comfort of their own homes.

Recently Mumbai's got its very own Rs 2 crore Insurance heist. A young 30-year-old man and his partners have found themselves in the sticky web of law enforcement's watchful gaze. The police have stated that the accused had submitted fake documents to claim the insurance amount, and that they had been under surveillance for some time before being arrested. The case is still under investigation, and further details have not been released at this time.

Basics of Life Insurance

When you sign up for life insurance, you're basically making a deal with an insurance company. You pay them a bit of money regularly, monthly or yearly. In return, they promise to give a certain amount of money to the people you choose or your beneficiaries when you pass away or after a set time. It's like a financial safety net for your loved ones. Let's dive into the different kinds of frauds people have pulled off in India and how you can steer clear of them.

The Types

Application Fraud: Some people might lie on their life insurance applications to get better terms. For example, they could pretend to be healthier than they actually are or have a different job to pay lower premiums.

Claims Fraud: Imagine someone making up a story about their death or someone else's to get money from a life insurance policy. This is called claims fraud and is also a dishonest way to get a payout.

Forgery: Sometimes, a person might change details in a life insurance policy without the policyholder's knowledge. This can include altering who gets the money or increasing the coverage amount, which is clearly a forgery.

Phoney Policy Fraud: There are dishonest people who might sell you a fake life insurance policy, promising you extra benefits or bonuses. They take your money but don't provide any real coverage, which you can mostly seen in movies too.

Identity Theft: This happens when someone steals your personal information and pretends to be you to get insurance benefits. It's like someone wearing a mask to pretend they're you.

What happens if you get caught?

Well, clearly a Policy Denial, where the insurance company can reject your policy completely. This means neither you nor your beneficiaries will receive any money from the policy, even if something happens to you. Even if the policy isn't denied, it can still be canceled if it's found to be obtained through fraud. This means you'll lose all coverage under the policy.

In some cases, insurance fraud is a crime. If the person committing fraud is caught and found guilty, they might have to pay fines, go to jail, or both.

But how to save yourself from these frauds is still a big question, but you need to be active throughout the procedure to save yourself from getting in these fraud activities.

Research Carefully: Before getting a life insurance policy, make sure you're dealing with authorized and legitimate agents.

Be Honest: Always provide truthful and accurate information on your application.

Stay Alert: If you notice anything suspicious, contact your insurance company immediately.

Online Caution: Don't click on links from unknown sources or share personal information online.

Guard Your Information: Don't share sensitive details or copies of your identification with strangers.

While India has implemented a range of policies and established institutions aimed at combating insurance fraud, instances of fraudulent activities and resulting losses to businesses remain prevalent. Despite ongoing efforts, numerous fraudsters within our nation continue to impact businesses negatively, resulting in an estimated annual loss of around Rs. 40,000 crores, equivalent to 8.5% of the industry's total sales.

Both individuals and insurance companies should prioritize bolstering measures to prevent false claims, thereby ensuring the legitimacy of claims processed by insurance companies. The pressing need for a comprehensive insurance fraud law in India is evident, as such legislation would effectively address various forms of insurance fraud, both domestically and internationally. An estimated 10-15% of overall claims paid in a year are fraudulent.

The Indian health insurance industry is grappling with widespread fraud, costing an estimated ₹7,000-10,000 crore annually. The frauds are categorized into hard and soft types, where hard fraud typically involves hospitals submitting false claims, and soft fraud includes unnecessary treatments and overcharging. Despite these challenges, there are hopes that transparency and industry-wide package deals would help minimize fraud.

Important News of the Day

1. ‘India has moved from a savings economy to a spending economy & this is visible in travel’

Travel expenses of Indians have surged by 15-20% this year compared to pre-pandemic figures of 2019, despite the rise in costs, the nation's travelers remain undeterred.

2. No-confidence motion: Opposition's 'INDIA INDIA' counter to BJP's 'Modi'

As Prime Minister Narendra Modi entered the Lok Sabha for the ongoing debate on a no-confidence motion, National Democratic Alliance MPs started chanting 'Modi, Modi', but the Opposition replied with 'I.N.D.I.A., I.N.D.I.A.' The chaos began when Leader of Opposition Adhir Ranjan Chowdhury was hitting out at PM Modi for his silence on the Manipur violence issue.

3. Independence Day 2023: Red Fort to host sarpanch of 662 villages bordering China

The Red Fort in Delhi will host sarpanches (village head persons) from approximately 662 villages along the China border as part of the Vibrant Villages Programme for Independence Day 2023. This initiative aims to showcase the importance of these villages and strengthen their connection with the rest of the country.

4. Centre issues fresh guidelines for health & wellness celebrities, influencers

The Indian government has implemented guidelines for celebrities and influencers endorsing health products to ensure transparency. The guidelines state that endorsements must be made in simple, clear language, and terms such as "advertisement," "sponsored," and “collaboration” must be used to indicate that the post is a paid promotion.

5. India committed to eliminate Lymphatic Filariasis by 2027: Mandaviya

India is committed to eliminating Lymphatic Filariasis by 2027, three years ahead of the global target, through a nationwide Mass Drug Administration (MDA) initiative, according to Union Health & Family Welfare Minister Mansukh Mandaviya.

6. Jalan-Kalrock blocking sale of grounded Jet aircraft: Ace Aviation to NCLAT

Malta's Ace Aviation, a potential buyer for grounded Jet Airways' aircraft, informed the National Company Appellate Tribunal (NCLAT) that lenders of the grounded carrier are prepared to sell the planes, but the successful resolution appellant, Jalan Kalrock Consortium (JKC), is hindering the sale.

7. India to become global hub of medical technology devices by 2050: Mandaviya

India is set to become a global hub of medical technology and devices by 2050, according to Health Minister Mansukh Mandaviya. The market projection suggests a rise to $50 billion by 2050, with the effective implementation of the recently unveiled National Medical Devices Policy 2023.

8. Delhi's Department of Education bans school students, teachers from using mobiles in classrooms

The Directorate of Education (DoE) has strictly banned the use of mobile phones by students in classrooms and has asked teachers to refrain from using them as well. The move is aimed at reducing distractions and improving the learning environment in classrooms.

9. Union ministers, MPs to take out Tiranga Yatra in Delhi today

Union Ministers and MPs participated in the Tiranga Yatra in Delhi on August 11, ahead of Independence Day celebrations. The "Har Ghar Tiranga" bike rally was flagged off by Vice President Jagdeep Dhankhar from Pragati Maidan.

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