New Delhi, Jan. 21: The Law Commission is planning to suggest the incorporation of stringent penalties to deter insurance fraudsters who might be tempted to take advantage of the infirmities in the country’s legal system.
“The Indian Penal Code does not have provisions that can deal with insurance frauds. However, we will consider some measures and include it in our consultation paper,” T. K. Vishwanathan, member-secretary of the Law Commission told newspersons here today.
The consultation paper is being drawn up preparatory to a review of the Insurance Act of 1938, IRDA Act of 1999 and LIC Act. “The certainty of punishment is more important than deterrent penalty as it does not achieve the objective,” he said.