Irdai mulls linking insurance frauds with individuals' credit score

Believed to be a good deterrent as low score can deprive access to services

The Insurance Regulatory and Development Authority of India (IRDAI) is considering a proposal to make insurance frauds a parameter for calculating credit scores in an attempt to put a lid on the increase in such activity.

The proposal, which is a part of the recommendations made by a working group formed by Irdai and the General Insurance Council, suggests that insurance frauds should feature when the risk profiles of individuals are evaluated and should be used to calculate their credit scores.

A poor credit score can deprive a person of financial services such as loans and credit cards, and deter