24 Life Insurance companies will be entering into agreements with the vendors to provide details of their policy-holders.
n a bid to check frauds and multiple claims, the life insurance industry is planning to set up a centralised database of clients by this year, according to V. Manickam the secretary general of the Life Insurance Council.
“We are in the process of shortlisting a vendor, who will collate the database. The aim is to provide a fraud monitoring framework”, Mr. Manickam said on the sidelines of an insurance industry summit here on Saturday. The event was organised by the Indian Chamber of Commerce.
The database aims at detecting fraud or duplication of claims in the life insurance industry. The data base is likely to be ready by December, 2015, Mr. Manickam said, adding that all the 24 life insurance companies, will be entering into agreements with the vendor to provide details of their policy-holders.
To a question on the likelihood of any conflict of interest in this, he responded that it would be in their interest to do this.
It may be mentioned here that a second date base would be compiled in respect of the recently launched Pradahan Mantri Surkasha Jeevan Jyoti Bima Yojana. In this case, the CIBIL has been identified for maintaining the database.
“The database will go live on July 15, and, will look to ensure that there is no re-duplication of death claims,” Mr. Manickam said. Since its launch, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) has received 44 death claims, of which some have been settled, he added.
Moreover, in order to improve the viability of the accident insurance scheme — PMJJBY — the industry is looking to get some benefits like a 50 per cent rebate on the re-insurance portion of the Rs.330 premium and a concession on the stamp duty.
The Insurance Regulatory and Development Authority of India (IRDAI) has already been approached in this regard. This scheme covers both natural and accidental death risk of Rs.2 lakh at a Rs.330 annual premium.
It was learnt that over 2.5 crore policies have been rolled out under the Centre’s scheme, with the Life Insurance Corporation of India holding 1.5 crore policies.
Sudhin Roy Chowdhury, Former Member (Life), IRDA, said that there was a huge untapped market at the bottom of pyramid for insurance market as the base of pyramid is now financially capable to pay a moderate amount of premium. He stressed on better usage of analytics in insurance industry for enhancing efficiency in identification of frauds and claim settlements.
Praising the reform measures initiated by the Government in the insurance sector, Arijit Basu, MD & CEO, SBI Life Insurance Co. Ltd, said that the schemes would cover 100 million people.
ICC president Roopen Roy flagged the issue of low market penetration, saying that the PMs schemes are likely to be a game changer for the economically marginalised and uninsured population in the country.
1 The data base is likely to be ready by December, 2015 and will look to ensure that there is no re-duplication of death claims
2 Since its launch, PMJJBY has received 44 death claims, of which some have been settled.
2015 Kashmir Despatch