Cibil to detect duplicate death claims under the Pradhan Mantri Jeevan Jyoti Bima Yojana
Life Insurance Council has engaged Credit Information Bureau (India) Ltd to detect duplication of death claims under the PM Modi's new social security scheme.
Banks have sold a massive 2.5 crore policies under the Pradham Mantri Jeevan Jyoti Bima Yojana since May and have already received 44 death claims. V Manickam, secretary general of Life Insurance Council said.
The scheme offers Rs 2 lakh assurance in the event of death for merely Rs 330 annual premium.
According to industry experts, there is a possibility that several customers bought policies from many banks and therefore the need to check duplicate claims arises.
"The ministry of finance directed us to find a partner to detect duplication of policies. We thought Cibil would be the right one," Manickam said.
"Our mandate is to make a repository of the death claims," Cibil managing director Arun Thukral told ET. "As and when death claims happen, the data will start feeding in."
Cibil has built a database of 40 crore bank customers, 2.3 crore commercial loans and one crore mortgage repository data.
"Cibil is equipped to accessing insurance policy holders data and using them for the benefit of insurance companies," Cibil chairman MV Nair said.
The lobby group for life insurance companies is also planning a bigger fraud monitoring framework for its members.
"We are in the process of shortlisting a vendor who will build a database aiming to provide a fraud monitoring framework", Manickam said on the sidelines of Indian Chamber of Commerce event in Kolkata.
A meeting is slated next week to finalise the terms of reference, he added.
The mechanism would help insurance companies get details of customers and detect fraudulent claims.