Fraud Case Study

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Recommended: Short note on insurance fraud

CHAPTER - 3

NEED OF THE STUDY

Insurance Industry is one of the flourishing Industries, who deals with uncertainty and provide protection to the subject matter insured. With the rapid growth in the industry, there has been an augmented incidence of frauds in the country. The industry has witnessed a rise in the number of fraud cases during the last one year. Therefore, the need of my study is to know that what kind of Frauds happen in the Industry, who is responsible for these frauds and how we can prevent ourselves from indulging in these Frauds. Also to suggest measures through which new laws could be made to remove these kinds of crime from the industries.

CHAPTER - 4

OBJECTIVE OF THE STUDY

1. To understand the different kinds of Frauds that is happening in the insurance industry.
2. To understand the factors which are responsible for these Frauds?
3. To find out who is responsible for these Frauds
4. To identify how we can prevent ourselves from these frauds and how we can control the occurrence of these frauds.

CHAPTER - 5

SCOPE OF THE STUDY

1. The scope of my study is to understand different kinds of frauds happening in this industry.
2. To analyze the factors which contribute to these frauds? Then compiling the data and suggest adequate measure regarding how we can tighten the grip on insurance frauds.
3. This study is limited to frauds that happen in insurance industry
4. This study revolves around customers and their perception towards insu...

... middle of paper ...

...thing is that we have to understand the areas which need more care. Through this research, I have come across the fact that why frauds happen in the industry i.e. employee’s income, poor internal controls and moral hazard of the consumers, some dishonest insurance agents etc. and their motive is greed and lifestyle.
Identification of insurance fraud and controlling it is the basic priority. It is not a victimless crime i.e. someone whether internal or external is directly or indirectly involved in it. The Industry needs to tighten its grip to ensure that all types of frauds are being identified or can be reduced whether happen at the application level or at the claim level. To reduce the cost of frauds in insurance industry, I have suggested certain strategies which could be adopted by the insurer so that the ratio of fraud happening can be minimized in the country.

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