Recent frauds in small towns such as Ganjam in Odisha and Kubernagar in Gujarat have prompted insurers such as LIC, ICICI Prudential Life and HDFC Life to ban their agents from selling policies in over 60 localities to prevent fraudulent claims.

Insurance companies have also blacklisted some centres such as Meerut and Moradabad in Uttar Pradesh and Darbhanga, Begusarai and Bhagalpur in Bihar. Some other centres like Guntur, Kurnool and Visakhapatnam in Andhra Pradesh are in the negative location list.

For the past couple of years, insurance companies, which have been sharing data to detect frauds in the system, have tied up with LexisNexis and Experian to collate database on frauds. The above action has been taken after analysing above data.

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