In an attempt to contain fabrication of claims rampant in the third party arm of motor insurance, National Insurance Academy has proposed a “scientific method” which would facilitate insurers and the courts to point out any anomaly in the claims.

The method is based on seven processes, four preventive and three retrospective tools. Preventive tools, which would come in handy while an insurer is settling a claim, comprise stress analysis, which would gauge the stress in a claimants voice to figure out if he is giving a real account of things. The other is “red flagging”, which essentially means to report bogus claims thereby creating some sort of a bank so the next time a surveyor visits a particular case he can dip into the bank to help him identify a pattern.

Predictive modelling is another tool by which an insurer will have hands on information on the type of vehicles making the type of claims in the type of area. Says K C Mishra, director, National Insurance Academy: “Like in the US, the claims data for every vehicle is analysed to identify a pattern. For example, a big car is more accident prone in hilly areas.” The last is data base searching, adds Mishra: “We know of a place which has been infamous for raising third party claims by throwing dead bodies in front of speeding trucks. Having records would help an insurer to be extra cautious to settle claims in that area.”

Retrospective tools, which would help an insurer find out if the claim was bogus after it has been settled, comprise “exception report” which would point out any exception in the number of claims in various branches of the insurer. It would also include “online analytic processing”, under which a person and his records would be maintained to keep track on the claims he has made.

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