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Entertainment » Other


Indian Insurance sector losses $50 billion

Hyderabad, May 18 (UNI) The losses caused to Insurance sector in India due to different kinds of frauds are Rs 30,401 crore (approximately 50 billion US dollars), according to an Indian Forensic Study (2012).
The losses is roughly 9 per cent of the total estimated size of inusrance industry in the year 2011, study report which published in IIB (Insurance Information Bureau of India ) bulletin, said .
This is significantly high from developed countries where frauds are less than 0.5 per cent of industry size for instance in the UK, frauds are 1.3 billion pounds in 2013.
Frauds in Indian life insurance industry is almost six times higher than frauds in non-life insurance industry, the bulletin said.
Major types of frauds are falsification of document, exaggerated medical bills, forged driving license, forged FIR reports and miss-selling of insurance policies by agents.
Motor insurance and health insurance are among the top list in non-life insurance and miss-selling of life insurance policies by insurance agents is one of the biggest issue in Life insurance industry resulted in more than 50 per cent employees turnover rate, the bulletin added.
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