Munish Sharda, MD & CEO, Future Generali Life Insurance, said, “We don’t have an online term plan but offer offline term plan (sold by agents). We have seen challenges in some areas and segments on account of non-disclosure of the existing diseases and also because of misrepresentation and fraud. We have strengthened our due diligence process and have made medical tests mandatory for policies coming from fraud prone areas.”
A senior official at HDFC Life said that as part of our risk monitoring process, we take suitable corrective actions in order to ensure that the risks that we underwrite are in line with what is assumed in the price we charge. This is a common practice in the industry.”
Ashish Vohra, senior director and chief distribution officer, Max Life Insurance, said, “In our case, medical tests were made mandatory around three years ago. There is a certain component of fraud in the industry. There are examples, where we have caught incorrect representation both in term plans and savings plans driven by middlemen who have put together a false file. We invest in front end controls and underwriting to pick up cases where frauds could be higher.”
Source: IIFL
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