Lok Sabha Question No. 1417 (UNSTARRED), answered on 2019-07-01
Subject: Fake Insurance Policies
Ministry: FINANCE
Asked by: Rahul Ramesh Shewale, Bhartruhari Mahtab

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## UNSTARRED QUESTION NO.  1417

TO BE ANSWERED ON MONDAY, JULY 01, 2019/ASHADHA 10, 1941 (SAKA)

## FAKE INSURANCE POLICIES

## 1417. SHRI RAHUL RAMESH SHEWALE: SHRI BHARTRUHARI MAHTAB:

Will the Minister of FINANCE be pleased to state:-

- (a) whether a large number of vehicles remain uninsured due to proliferation of fake policies in  the  country,  if  so,  the  details  thereof  along  with  the  number  of  such  complaints received  by  the  Government  during  each  of  the  last  three  years  and  the  current  year, company-wise;
- (b) the action taken by the Government on such complaints so far;
- (c) the monitoring mechanism out in place to prevent issuance of fake insurance policies of vehicles in the country; and
- (d) the other corrective steps taken by the Government in this direction?

## ANSWER

## THE FINANCE MINISTER (SMT. NIRMALA SITHARAMAN)

- (a)  and  (b): The  Insurance  Regulatory  and  Development  Authority  of  India  (IRDAI ) has informed that as per the information provided by various insurers, the year-wise break-up of fake motor policies is as under:

| Fraud Monitoring Analysis - Data pertaining to fake Motor Policies   | Fraud Monitoring Analysis - Data pertaining to fake Motor Policies   | Fraud Monitoring Analysis - Data pertaining to fake Motor Policies   |
|----------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|
| Financial Year                                                       | No.                                                                  | Amt. (Rs. in lakhs)                                                  |
| FY 2016-17                                                           | 498                                                                  | 3374.41                                                              |
| FY 2017-18                                                           | 823                                                                  | 2570.79                                                              |
| FY 2018-19*                                                          | 1192                                                                 | 5364.21                                                              |

*excluding Oriental Insurance Co Ltd

IRDAI  has  further  informed  that  they  have  directly  received  complaints  relating  to  three instances of fake policies being issued pertaining to entities which are not registered as general insurers with them.  The details are as follows:

- (i) 'M/S AKPCL General Insurance Company Ltd' (Year 2016).
- (ii) 'M/s Gone General Insurance (Year 2019).
- (iii) 'M/s. Marines Technology' (Year 2019).

IRDAI has put up a public notice in each of the above mentioned cases advising general public not to make any transaction with these companies and to bring any unauthorised transaction to its notice. A complaint has also been lodged with the police authorities in respect of the company at S. No. (i) above and they are in the process of filing a police complaint   against the companies mentioned at S. No. (ii) and (iii) above .

(c)  and  (d): IRDAI  has  issued  directions  ref'  IRDA/SDD/MISC/CIR/009/01/2013  dated 21/01/2013  to  all  Insurers  and  Reinsurance  Companies  for  putting  in  place  fraud  monitoring framework for identification, classification and monitoring of frauds.

IRDAI has carried out insurance awareness campaign through print media in 13 languages. They have  also  launched  a  consumer  education  website  (www.  Policyholder.gov.in)  as  single  point reference for dissemination of information about Consumer guidance and protection including in regard to motor insurance.

IRDAI has further informed that:

- i. Every  product  registered  with  IRDAI  has  a  Unique  Identification  Number  (UIN) which can be checked by policyholder.
- ii. The list of approved products is put up on IRDAI website each year along with its UIN.
- iii. The policyholder  can  check  the  details  of  their  motor  insurance  policy  on  Insurers website
- iv. The policyholder can also check whether the insurers are registered with IRDAI.

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