Irdai mulls linking insurance frauds with individuals' credit score

Believed to be a good deterrent as low score can deprive access to services

insurance
Premium

Some studies show that globally, around 10 per cent of the premiums are said to have been lost due to frauds

Nikunj Ohri New Delhi
The Insurance Regulatory and Development Authority of India (IRDAI) is considering a proposal to make insurance frauds a parameter for calculating credit scores in an attempt to put a lid on the increase in such activity.

The proposal, which is a part of the recommendations made by a working group formed by Irdai and the General Insurance Council, suggests that insurance frauds should feature when the risk profiles of individuals are evaluated and should be used to calculate their credit scores.

A poor credit score can deprive a person of financial services such as loans and credit cards, and deter

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jun 19 2022 | 7:14 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com