With cases of fraud on an increase in the insurance industry, players have been urged to collaborate with Police to investigate and combat the vice.
Speaking at the industry’s chief executive officers’ meeting in Kampala last week, Ms Evelyn Nkalubo, the Insurance Regulatory Authority director of legal and compliance, said some claims lodged by the insured public are exaggerated and fraudulent.
Citing a scenario of a person who insured his car with three different players and wanted all of them to pay claims, Ms Nkalubo urged players to report and exchange information on fraudulent claims.
“You should sort out your differences as insurers, share information and work together to minimise loopholes that could be exploited by fraudsters to fleece insurance companies because it hurts the industry,” she said.
Firms being targetedAlthough there is no available official data, Mr Ibrahim Kaddunabbi Lubega the IRA chief executive officer noted that fraudsters are increasingly targeting insurance companies as a way of getting quick money, requiring that appropriate measures are taken to fight it as it hampers sector growth.
According to a Deloitte 2013 Financial Crimes Survey report, Uganda’s financial services industry – which includes banks and insurance companies lose between $1 million (Shs2.4 billion) and $10 million (Shs24.9 billion) to fraud annually.
SOURCE: Daily Monitor