Insurance fraud must be controlled India needs insurance fraud control act

Every day numerous insurance frauds are being committed in India as well as in other countries in the world. It is surprising to see that higher the level of the development of a country -the fraud cases are more and of course much bigger in monetary terms. Study of hundreds of case studies from India as well as other countries reveals that frauds are being committed by all the stake holders. These include employees of insurers, insurance intermediaries, surveyors, TPA’s, service providers like health care facilities, diagnostic labs, automobile workshops and large number of insurance clients. In addition to these there is a separate group of Criminals or fraudsters in every society or economy, who become associated with government authorities, police, panchayats with a view to claim amount from Insurers and then share it among themselves. Indian Penal Code cannot handle fraudsters of 21st century therefore the author believes that time has come when “India Needs Insurance Fraud Control Act “ on the lines of similar acts in USA and many other developed countries . By hiding the names of these fraudsters we are causing more harm to our industry. It is better to reveal the names of these fraudsters by having “Hall of Shame” so that their coverage in media, electronic media and social media will deter them from committing frauds in future