Insurance Update: Demand for a system like CIBIL in the insurance sector too, fraudsters will be caught immediately..

The Government of India has resolved to provide health insurance to every citizen under the goal of "Insurance for All 2047". Currently, insurance coverage in India is around 4%, while in developed countries it is up to 50%. Insurance companies want more people to take health insurance, but there should also be a solution to the huge losses they suffer due to fake claims.

In the banking sector, the CIBIL score is used to find out how much capacity a person has to repay the loan he takes. Similarly, insurance companies also want a system that can find out who is repeatedly making fake insurance claims. So that not only their fake claims are caught but they are also punished by increasing their premium.

Big loss to the insurance industry due to fake claims

Every year, insurance companies suffer a loss of ₹12,000-15,000 crores due to fake claims. Fraud is found in 10-15% of the total insurance claims. Due to this, the premium of honest customers increases by 18-22%. Insurance companies are trying to stop fake claims at their level, but without any organized and transparent system, it is proving to be challenging.

What will be the benefits of a system like CIBIL?

Benefit to honest customers: Those who make correct claims will get the insurance amount soon.

Ban on fake claims: Those who repeatedly make wrong claims can be monitored.

Expansion of the insurance industry: With more transparency, people's trust will increase and they will buy more insurance.

Premium rates will remain stable: When the number of fake claims decreases, insurance companies will not suffer much loss and premiums will also be saved from increasing.

Why is insurance necessary?

Insurance is not just a financial product, but it is a strong means of personal and social security.

Financial security: The burden of medical expenses is reduced and the family's savings remain safe.

Better health services: With insurance, people can get timely treatment.

Improved quality of life: When families are not worried about medical expenses, their quality of life improves.
Strengthening the country's economy: Increasing insurance coverage leads to an increase in GDP.
Social stability: Insurance protects people from sudden financial problems.
What could happen next?
If a system like CIBIL is implemented in the insurance sector, it will not only stop fake claims but will also benefit genuine customers. This will make the insurance industry more transparent and provide stability to India's economy. Genuine claims will be paid quickly, which will make people make insurance an essential part of their financial planning.

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