Frauds in Insurance
EXECUTIVE SUMMARY
“Rising frauds lead to greater operational threat.”
Insurance is one of the tools for risk management that aims at reducing the risk on the day-to-day life of individuals, organisation and society. At the same time, it should also be appreciated that insurance cannot be utilised as a risk free tool for all types of situations. Insurance provides risk management solutions to many situations that fall within the competence of human judgement and managerial skills.
Insurance is very important in today’s world there are number risk which people face in their day-to-day life. The different types of insurance are life insurance, health insurance, automobile insurance, and property insurance. These are the most common types of insurance. Other types of insurance include terrorism insurance, key man insurance etc. As there are number of advantages in taking an insurance policy, it is also associated with many risks. There are number of frauds taking place in the insurance sector. People have to be very cautious while taking an insurance policy.
Insurance is a federal subject in India. It is a subject matter of solicitation. The legislations that deal with insurance business in India are Insurance Act, 1938 and Insurance Regulatory & Development Authority Act (IRDA), 1999.
The hypothesis is that THIS PROJECT SCANS THE RISKY NATURE OF INSURANCE WITH REFERENCE TO VARIOUS TYPES OF TRANSACTIONS AND THEIR VULNERABILITY TO FRAUD.
CONCEPT OF INSURANCE
Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed and known small loss to prevent a large, possibly devastating loss. An insurer is a company selling the insurance; an insured or policyholder is the person or entity buying the insurance. The insurance rate is a factor
“Rising frauds lead to greater operational threat.”
Insurance is one of the tools for risk management that aims at reducing the risk on the day-to-day life of individuals, organisation and society. At the same time, it should also be appreciated that insurance cannot be utilised as a risk free tool for all types of situations. Insurance provides risk management solutions to many situations that fall within the competence of human judgement and managerial skills.
Insurance is very important in today’s world there are number risk which people face in their day-to-day life. The different types of insurance are life insurance, health insurance, automobile insurance, and property insurance. These are the most common types of insurance. Other types of insurance include terrorism insurance, key man insurance etc. As there are number of advantages in taking an insurance policy, it is also associated with many risks. There are number of frauds taking place in the insurance sector. People have to be very cautious while taking an insurance policy.
Insurance is a federal subject in India. It is a subject matter of solicitation. The legislations that deal with insurance business in India are Insurance Act, 1938 and Insurance Regulatory & Development Authority Act (IRDA), 1999.
The hypothesis is that THIS PROJECT SCANS THE RISKY NATURE OF INSURANCE WITH REFERENCE TO VARIOUS TYPES OF TRANSACTIONS AND THEIR VULNERABILITY TO FRAUD.
CONCEPT OF INSURANCE
Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed and known small loss to prevent a large, possibly devastating loss. An insurer is a company selling the insurance; an insured or policyholder is the person or entity buying the insurance. The insurance rate is a factor