Leading insurer Jubilee Holdings has pumped $ 3.5 million ( Sh361.58 million ) into the ongoing crackdown on fraudulent claims, the firm’s chairman Nizar Juma said yesterday.
“We are facing a lot of fraud hence our decision to invest in more developed IT and digital systems, so that we can counteract this fraud,” he said.
In addition to IT related frauds, the firm listed identity theft, over-pricing, oversupply of drugs and collusion between hospitals and clients as other forms of fraud they experience.
Chief executive Patrick Tumbo said the firm will also register its members through the biometric identification system to access all available covers via their mobile phones.
Speaking to the press yesterday in Nairobi after the firm’s annual general meeting, Juma said as much as 40 per cent of the about 6,000 claims they receive everyday are fraudulent. To mitigate this, they have put in place an online approval system where they monitor what service providers in hospitals and pharmacies will be keying in.
“We are encouraging parliamentarians to bring laws that are strict. It will not make sense to give Sh50,000 fine to a fraudster who has stolen over Sh10 million. They should be fined and given a jailed term,” said Juma.
