Investigation in Maharashtra Insurance Fraud Scheme

Agriculture Insurance Fraud

The state agriculture department is investigating all agriculture insurance fraud claims made by farmers for the Khareep and Rabbi seasons after it came to light that in Beed district alone, Rs 58 crore insurance money was claimed illegally and banks had to reverse that amount to the state exchequer.

According to a report on the incident, over 15,000 farmers from the district had fraudulently claimed insurance for a larger area of cultivation, or for premium paid for crops they hadn’t even sowed. The episode was investigated when it emerged that the cultivated land shown as insured was much higher than the area available for cultivation in the district.

Procedure for Insurance

According to the norms, a farmer has to get a crop certificate from the talathi mentioning the area under cultivation and the crop he will sow before he can get insured for that crop. The premium has to be paid in any of the banks that are authorized by the national agriculture insurance company.

In some cases, the farmer would get a crop-sowing certificate from the land revenue officer. A few days later, he would go back to the officer saying he had changed his mind and would be sowing another crop and hence would need another certificate. The farmer would take these two certificates (the earlier one wasn’t cancelled) to two different banks and pay the insurance premium for both the crops, but sow only one crop. In these cases, insurance claims were admitted for both the crops.

Agriculture Insurance Fraud

There were cases where farmers didn’t even cultivate anything and had yet paid up premium for cotton and had received insurance money. Some had registered inflated land areas so that more compensation could be claimed.

Insurance premium that the farmer has to pay is very meager and the amount depends on the crop and the area under cultivation. Currently, once an agricultural cycle is completed, crop production estimates are made by visiting random fields in one insurance circle, and then extending them to the entire circle. The indemnity levels for availing crop insurance in 2015 were kept at 60.

Certified Forensic Accounting program offered by the Indiaforensic Center of Studies and customised for the Insurance sector discuss the various Insurance fraud schemes. For detailed information on the Insurance sector certification please call us on +91-9766594401 or write us on education@indiaforensic.com

 

Pockets of Insurance Frauds in India

insurance frauds in india

Almost every month, fraudsters have been popping up in small towns across the country to carry out organised attacks on life companies. They come in all hues: faceless crooks in Punjab buying life covers with a bogus log-in on the Internet, as well as old-world racketeers armed with fake death certificates. Continue reading

Insurance Fraud Research covered widely

Indian insurance companies have borne a loss of over Rs 30,000 crore in 2011 due to different kinds of frauds, a study has claimed.

It cited collusion between the employees of insurers and private persons, document falsification and manipulation in citing cause of death to claim insurance benefits, as some of the reasons behind these frauds.

“The losses caused to the insurance sector are Rs 30,401 crore which is roughly 9 per cent of the total estimated size of insurance industry in the year 2011,” the report said.

This report created by Indiaforensic Center of Studies was widely covered in most of the National News papers and Electronic Media. Here are the links for the various news articles

<span >To access the complete research on the Insurance sector frauds in India please click here