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The Life Insurance Council, an apex industry body of life insurance companies, is planning a consolidated database of policy holders by December this year.
According to V Manickam, Secretary General, Life Insurance Council, the database will look to prevent insurance claim frauds and work on a concept similar to CIBIL (Credit Information Bureau of India Ltd).
”By December this year we should have a centralised database for fraud monitoring framework,” he said on the sidelines of an insurance summit organised by the Indian Chamber of Commerce (ICC).
The Life Insurance Council will soon shortlist a vendor who will collate the database. A meeting in this regard is scheduled next week.
All 24 life insurance companies, who are members of the Council, will be entering into agreements with the vendor to provide details of their policy holders. The subscriber base so given will be shared to detect and prevent insurance frauds or false claims or duplication.
PMJJBY Schemes
On a similar line, the Life Insurance Council is also looking for a second database to detect duplications of death claims under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). 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," Manickam said.
Since its launch earlier in May this year, PMJJBY has seen 44 death claims. Some of the claims have already been settled, he added.
Seeking benefits
Speaking on the PMJJBY scheme, Manickam said the Council has already written to regulator, Insurance Regulatory and Development Authority of India (IRDAI), seeking a 50 per cent rebate in re-insurance rate.
According to him, the re-insurance rate on the scheme is Rs 180 (out of which a 50 per cent rebate is being sought).
This apart, the Council will also approach the respective State governments to waive the stamp duty of Rs 40 in order to improve viability of the scheme.
Out of Rs 330 charged as annual premium for the Rs 2 lakh sum assured, insurance companies get about Rs 250 after deducting bank commission and stamp duty.
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