The Power of Background Investigations in Insurance Claims

In the bustling streets of India, insurance companies are constantly facing challenges in the form of fraudulent claims. According to some recent studies, insurance fraud costs in India are about USD 6.25 Billion annually! That makes up for 8.5% of the total revenue made by the insurance sector in a single year. This shocking figure has persuaded insurance companies to take significant steps to put a pause on these menacing activities.

While investigating a claimant’s records is a standard step, a lot of insurance companies recruit private investigators to do a thorough check. These investigators apply a number of techniques to determine the credibility of the claimants and get back to the companies with their findings. One of the most effective tools used by these investigators is background investigation – one that helps unravel the past of the claimant, to make sure that the details shared by them are legitimate. With meticulous investigation involving one’s personal, professional as well as social characteristics, this process helps shed light on valuable insights that enable the insurance agent to make sound decisions.

The primary objective of background investigation is to reveal any data or information from the claimant’s past that may possibly impact the validity of the claim made by them. This kind of investigation deeply focuses on verifying the individual’s personal details, inspecting their financial history, analysing employment records and even investigating their social relationships. All of these background details allow the insurer to ensure that no fraudulent activities are in progress and also determine the rightful amount of compensation to be granted to the claimant.

In order to conduct a thorough background investigation, investigators employ a number of techniques. From meticulously going through the claimant’s public records such as criminal, property ownership and civil litigation history, to interviewing the individuals associated with them, like their neighbours and colleagues, investigators aim to gather intel on the individual and analyse their character.

The advantages of conducting background investigations in the insurance industry cannot be overstated. Listed below are some of them:

  • Revelation of relevant data and information, including the claimant’s identity, address, employment history and financial status
  • Early detection of fraudulent claim, to avoid unnecessary payouts
  • Gathering of credible evidence that can hold up in legal proceedings
  • Maintaining time and cost efficiency while improving overall customer satisfaction
  • Protection of company’s reputation to attract new customers and also promote the growth of the overall industry

All-in-all, it’s vital to employ a professional to conduct a background check on claimants, to ensure that no false claims lead to a gross loss for the insurance company.

We at GDA, have a team of professionals who specialise in background investigation. Having had the privilege to serve a range of clients, our team brings a wealth of experience to assist newer clients, with tasks related to insurance claim investigations.

To know more about our services, head over to our website:

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