'Centralised database of life insurers soon'

Life insurance companies in the country will come up with a centralised database of clients by this year end, an industry official said here on Saturday.

"We are in the process of shortlisting a vendor, who will collate the database aimed to provide a fraud monitoring framework", secretary general of Life Insurance Council, V. Manickam told mediapersons on the sidelines of an event organised by the Indian Chamber of Commerce here.

The database is aimed to detect fraud or duplication of claims in the life insurance space.

He said the association will be holding an internal meeting among its members next week and will narrow down on selecting a vendor.

"By December this year, it will be rolled out," he said.

"They will do it for their own survival", he said when asked why the insurance firms will collaborate and share their database.

Manickam further said the association has approached the Insurance Regulatory and Development Authority (IRDA) asking for a 50 percent concession from re-insurers to implement the Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY) to improve the viability of the scheme.

He said from the annual premium of Rs.330, Rs.40 stands as stamp duty while Rs.41 is taken by the bank as service charge or commission.

"We have also asked the government to consider waiving off the stamp duty," he said.

The official said his association had approached the centre with the plea but was asked to contact the states for the waiver.

"We'll ask the states for the concessions," he added.

The centre has asked the Life Insurance Council to check for duplications as claims under the PMJJBY are settled.

"We have roped in Credit Information Bureau (India) Limited (CIBIL) on this," he said.

According to the official, more than 2.5 crore policies under the centre's scheme have been rolled out with the Life Insurance Corporation of India leading at 1.5 crore policies.

Until now, 44 claims have been made under the PMJJBY.

"There was no duplication in these claims," he said.