Tackling the Menace of Insurance Policy Forgery in India: Statistics and Solutions


Insurance policies provide individuals and businesses with financial security and protection against unforeseen risks. However, the rising issue of insurance policy forgery poses a significant threat to policyholders, insurance companies, and the insurance sector as a whole. In this blog, we will explore the alarming statistics of insurance policy forgery in India and discuss potential solutions to combat this fraudulent practice effectively.

1. The Rising Menace of Insurance Policy Forgery

Insurance policy forgery involves the creation of fake insurance documents or manipulation of genuine policies to deceive policyholders, insurers, or regulatory authorities. Such forged policies not only undermine the trust between policyholders and insurance companies but also lead to financial losses and legal consequences.

2. Indian Statistics on Insurance Policy Forgery

a) According to the Insurance Regulatory and Development Authority of India (IRDAI), fraudulent activities, including policy forgery, account for a significant portion of insurance claims in India.

b) A study conducted by a leading insurance company revealed that nearly 15-20% of insurance claims in India were linked to forged policies or falsified claims.

c) The Insurance Information Bureau of India (IIB) reported that the life insurance segment experiences a higher incidence of policy forgery, contributing to a significant portion of total fraudulent claims.

3. Factors Contributing to Insurance Policy Forgery

a) Lack of Awareness: Many policyholders lack awareness about the authenticity verification process, making them vulnerable to accepting forged policies.

b) Inadequate Verification Procedures: Some insurance companies may have weak verification protocols, making it easier for fraudsters to manipulate policies or create counterfeit documents.

c) Complex Insurance Jargon: The intricate language used in insurance policies may be difficult for policyholders to understand fully, leading to misinterpretations and potential forgeries.

4. Solutions to Combat Insurance Policy Forgery

a) BSecured Platform on Blockchain Technology: Implementing blockchain in the insurance sector can create an immutable and transparent ledger of policy records. This technology ensures that policy documents cannot be altered or duplicated, providing enhanced security against forgery.

b) Digitization and Authentication: Insurance companies should invest in digital platforms that offer secure authentication mechanisms to validate policy documents. Digital signatures and biometric authentication can enhance policy verification processes.

c) Public Awareness Campaigns: Launching public awareness campaigns about insurance policy forgery, its consequences, and the importance of verifying policies can empower policyholders to identify and report suspicious activities.

d) Collaborative Efforts: Insurers, regulators, and law enforcement agencies must collaborate to share data and insights on emerging fraud trends, enabling the identification of potential forgery patterns.

e) Regular Audits and Checks: Insurance companies should conduct regular audits and checks of policy documents and claims to identify any anomalies or discrepancies.


Insurance policy forgery is a serious threat to the insurance industry’s integrity and the financial security of policyholders. The statistics in India reveal the scale of this issue, underscoring the need for immediate action. Embracing advanced technologies like Blockchain, promoting digitization and authentication measures, and increasing public awareness are essential steps towards eradicating insurance policy forgery. Through collaborative efforts and stringent verification processes, the insurance sector can safeguard policyholders, enhance trust, and foster a robust and fraud-resistant environment for all stakeholders involved