Life insurers need to be careful about fraudulent claims and improve checks from the policy issuance stage, said Nilesh Sathe, Member (Life) at the Insurance Regulatory and Development Authority of India (IRDAI).
Speaking at an event organised by Association of Insurance Claims Management (AICM), Sathe said the insurance industry has to ensure that money does not flow to dishonest people.
“Fraudulent claims occur because of wrong selection of lives, and focus on increasing the topline and showing growth. Underwriting at the basic stage needs to improve and distributors, such as agents, should be trained.”
Ganesh Iyer, President of AICM, said there is a clear trend of high-value fraudulent claims in the industry.
