- 10 Oct 2013 To 11 Oct 2013
Venue : Amity University Campus, Sector-125 Noida
Amity School of Insurance, Banking and Actuarial Science started two day Seminar on “Prevention of Frauds in Insurance & Banking Industry” at Amity Campus, Sector- 125, Noida.
Shri P. K. Malhotra, Advisor, Central Vigilance Commission, Govt. of India; Mr. Niraj Kumar, General Manager, Oriental Insurance Co. Ltd, Prof. R R Grover- Advisor, Amity School of Insurance, Banking and Actuarial Science and Dr. (Mrs.) B Shukla- Acting Vice Chancellor, Amity University, Uttar Pradesh inaugurated the Seminar.
Welcoming the gathering, Prof. R R Grover- Advisor, Amity School of Insurance, Banking and Actuarial Science opined that it is not very difficult to prevent frauds. Whistleblowers are the biggest source of discovering frauds, along with increased vigilance and due diligence.
Addressing the gathering, Mr. P. K. Malhotra, Advisor, Central Vigilance Commission, Govt. of India stressed that the number of frauds are increasing in Society owing to our growing carelessness and neglect in routine works. Human greed and temptation also lead to frauds. Quoting a research, Mr. Malhotra shared that the amount involved in the frauds reported by the banking sector in India during 2012-13 is of over Rs. 8646 crores and the Banking Sector has reported frauds worth Rs. Rs.30, 401 crore in the year 2011. He stated that in Banking Sector, few customers open account with fake documents to commit fraud and in such cases, Bank officers are either party to the fraud or are victims of the fraud. In cases of frauds such as forge signatures, digital forgery of A/Cs, the onus of forgery lies on perpetrators and bankers are true victims but in cases where, bankers overlook the formalities or checklist to open an account, they are considered partly responsible for the fraud committed. Dwelling upon the existing preventive measures in Organizations to track frauds, Mr. Malhotra remarked that in organizations, there are internal as well as external auditors to try to detect lapses, cases of gross negligence etc. and if there is any such case detected then police is informed of the fraud which is ranging between Rs. 1 - 3 crores and beyond that CBI comes into picture. He called upon the gathering to be vigilant in every walk of life and not to indulge in acts which disrupt public functioning. The moment a short cut is taken in Banking and Insurance Sector, the likelihood of a fraud being committed increases.
Sharing his views, Mr. Niraj Kumar, General Manager, Oriental Insurance Co. Ltd commented that frauds have always been there and would always be there. If it is checked one way; people find ways to commit it some other way. Frauds can, however, be reduced if the vigilance is increased. Mr. Kumar stated that most often, underwriters have their fair share in the fraud and sometimes, insurance is taken just to commit fraud. He remarked that no insurance company wants to bear loss since it causes the company’s funds to shrink. Customers also suffer, since shortage of funds goads the insurance company to hike the premiums and stringent checks and re-checks causes even a genuine customer to run pillar to post for getting his insurance claim. Mr. Kumar narrated several real life instances where customers tried to extract the insurance money by deliberately destroying their assets.
Addressing the gathering during one of the technical sessions on “Need for specific legislation for preventing Insurance frauds”, Mr. N K Singh- General Manager, Oriental Insurance Co. Ltd. stressed that it is hard to access the magnitude of frauds in India. The National Centre for Forensic Studies estimates an annual loss of 6.5 billion dollars in India due to frauds. He shared several stringent laws which exist in UK and USA to check frauds unlike India, where there is no specific law to check growing frauds due to which it becomes cumbersome for either parties to get real justice from the court of law.
During the second day of the Seminar, a host of technical sessions on relevant issues will unfold such as “Fraud Prevention a challenge for Bankers” by Mr. S. K. Sangar, Field General Manager, Union Bank of India, “An overview of Frauds in Banking Industry” by Shri S. K. Kowshal, Chief Vigilance Officer, Oriental Bank of Commerce, “Impact of Frauds on a Bank’s Balance Sheet” by Dr. Narinder Bhasin, Business Head North, Axis Bank Ltd., New Delhi, “Prevention of Frauds in Loan against Property” by Mr. Deepak Joshi, Vice President, Compliance, Religare Fin Serve Ltd, “Role of Board in matters of Compliance in Banks” by Mr. S. Sinha, Chief Executive Officer, Institute of Company Secretary of India, New Delhi & Independent Director, Canara Bank, “Prevention of Frauds in Gold Loans” by Mr. D. S. Khokhar, CEO, ESN Finance and Capital Service Limited, Gold SoukMall, Gurgaon.
Mr Niraj Kumar, General Manager - Oriental Insurance Company Ltd lighting the lamp
From L-R Prof RR Grover, Mr Niraj Kumar, Dr Balvinder Shukla, Mr PK Malhotra, Prof Manish Srivastava
Mr. Niraj Kumar, General Manager, Oriental Insurance Co. Ltd addressing the gathering
Mr. P. K. Malhotra, Advisor, Central Vigilance Commission, Govt. of India addressing the gathering
Prof. R R Grover- Advisor, Amity School of Insurance, Banking and Actuarial Science presenting memento to Mr. Niraj Kumar, General Manager, Oriental Insurance Co. Ltd
Dr. (Mrs.) Balvinder Shukla- Acting Vice Chancellor, Amity University, Uttar Pradesh addressing the gathering
Prof. R R Grover- Advisor, Amity School of Insurance, Banking and Actuarial Science addressing the gathering