In India, people being murdered for insurance payments
When the man who picked up the file arrived in January 2017, Amina Parvin was cleaning the floor of her parents’ house by herself. He introduced himself as a life insurance investigator and began to withdraw documents. Payment request. Passport photo. Death Certificate-Her Death Certificate. “Did you know Amina?” He asked.
“I’m Amina,” she replied, and “I’m actually alive.”
It seems that the entire family of Amina Parvin took her brothers and uncles to rush from farms and shops to prove to investigators that she was the victim of some fraud. They finally persuaded him to hand over the documents he brought. And that’s how Parvin knew that a claim was filed for her life insurance policy, and she didn’t even know she existed. Petitioner: Her estranged husband.
Life insurance scams are just one of the countless scams that have spread to the Barpeta district of northeastern India. Two years ago, thousands of people bribed community banks and began adding their names to farmers’ cash aid programs. Prior to that, it was a scholarship scandal. The Ponzi scheme killed before that. In this corner of Assam, where Amina Parvin and her family live, some people are proud of all their ingenuity, joking about the “brain” because of the rooted fraudulent culture. But from time to time, they make subtle references to what is causing fraud: crushing poverty, government neglect, and political repression. Versions of this have been rolled out across India, and historically marginalized people are fighting back to the state in the only way they can.
Insurance fraud is certainly not limited to Assam or India. In the United States, fraudsters spend more than $ 40 billion annually on non-health insurance companies. In the UK, insurers found 107,000 fraudulent claims worth about $ 1.3 billion in 2019. However, India’s life insurance design methods make India a particularly rich target.
India provides its citizens with basic life insurance policies that no government offers. It costs about $ 4 a year and pays about $ 2,600 when the policyholder dies. This is enough to cover the two-year wages of a typical worker. In 2000, the government opened the system to private insurance companies. Private insurance companies are crowded and have begun to cut corners. According to Deloitte, it lacks even the most basic checks and balances, and the industry has lost an estimated $ 28 billion in fraud in the seven years to 2012.