Insurance fraud framework

Gather a detailed perspective

The insurance industry is still in an evolutionary phase and so is the fraud management framework across insurance companies, which is a work in progress. In light of that, the Insurance Regulatory and Development Authority (IRDA) has been taking steps to address the fraud risks being faced by the insurance industry.

One such measure is the circular issued by the IRDA in January 2013 which requires insurance companies to set up a Risk Management Committee as well as lay down a company-wide comprehensive fraud monitoring framework. The main fulcrum of the fraud monitoring framework is to have in place an anti-fraud policy duly approved by their respective Boards, including aspects involving the prevention of fraud, detection of fraud and an incidence response mechanism.