Life Insurance Council plans fraud monitoring framework

KOLKATA: Life Insurance Council, the apex industry body of insurers is planning a fraud monitoring framework for its members.

The system should be in place by December, Secretary General of Life Insurance Council V Manickam said.

"We are in the process of shortlisting a vendor who will collate the database aimed to provide a fraud monitoring framework", he told reporters on the sidelines of an event organised by Indian Chamber of Commerce here.

A meeting is slated next week in this regard to finalise the terms of reference, he added.

As banks get benefits from Cibil, this fraud monitoring mechanism will help insurance companies get details of customers and detect any fraud in disclosure and claims by policyholders.

Speaking about the Prime minister Jiban Jyoti Bima Yojana, he said the council has already written to IRDA seeking 50 per cent rebate in re-insurance rate of Rs 180 on this policy promoted by the centre.

The council will also approach the state governments to waive off the stamp duty of Rs 40 in order to improve viability of the scheme.

Out of Rs 330 charged for the Rs 2 lakh sum assured, insurance companies gets about Rs 250 after deducting bank commission and stamp duty.

Manickam said out of 24 life insurance companies, 10 have joined the programme.