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Insurance Commissioner Dr Justice Ofori said about 25% of all insurance claims made in the country are fraudulent.
According to the 2019 Annual Report of the National Insurance Commission (NIC), the average daily claims incurred by non-life insurers in Ghana amounted to GHS 1.4 million.
Insurance fraud can fall into different categories, from individuals committing fraud against consumers to individuals committing fraud against insurance companies. Non-medical insurance fraud is estimated at over $ 40 billion per year.
Globally, fraudulent insurance claims stand at around 40%, while this figure is around 25% in Ghana.
In interacting with the media, Insurance Commissioner Judge Ofori noted that insurance fraud not only inflicts additional costs on insurance companies, but also has a financial impact on ordinary consumers because they are forced to pay higher premiums in the end. .
“Worldwide, of all reported claims, 40% are fraudulent. This is one of the reasons that insurance claims need a lot of investigation. It also affects the premium that people pay because as long as there is leakage it translates into a high premium for consumers all over the world. I don’t have the details, but in Ghana we should be looking at around 25% of fraudulent claims. It could inflate claims, stage claims and sometimes people stage their death to claim life. ”
According to Dr Ofori, insurance companies in Ghana need to do better due diligence to ensure that only legitimate claims are paid.
“It is the responsibility of insurance companies to exercise due diligence before embarking on claims settlement. Investigating claims is very important in eliminating these fraudulent cases. It is therefore the responsibility of the insurance companies who have to pay these claims to investigate to ensure that they only pay legitimate claims. ”
According to a recent study on public perception, awareness and confidence in insurance in Ghana, people are making fraudulent claims due to a poor database of policyholders and their activities, a problem that the NIC has identified. ‘strives to resolve with an upcoming digital claims database.
—Press room
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