Claims:We Claim:
1) The method and computer program for fraud detection system in insurance using blockchain technology comprising of components such as;
a) Electronic device with active internet connection – To create profile of user who want to use insurance web application
b) Blockchain API (Application Interface)- To Verify all document submitted by user
c) Backend server – The data is stored in cryptographically form with help of blockchain technology
2) The system claimed in claim 1, user must have government approved photo id proof to prove his Genuity to prove that user is not fake.
3) The system claimed in claim 1, user must submit all needed document related to insurance policy online to application and create profile on application.
4) The system claimed in claim 1, create smart contract. This contract contains all records of the insurance premium and claims. So, it is possible of tracking of history of insurance policy records. Due to which system become more transparent.
, Description:FIELD OF THE INVENTION
The present invention discloses the method or computer program for fraud detection system using blockchain technology. The invention is related to insurance sector.
BACKGROUND OF THE INVENTION
Insurance fraud is an illegal act carried out by either the buyer or seller of an insurance contract. Insurance fraud occurs when a buyer or seller makes false insurance claims in order to obtain compensation or benefits to which they are not entitled. Insurance fraud is committed in many forms, but regardless of the type, it is considered a serious crime in all jurisdictions.
Insurance fraud is any act committed to defraud an insurance process. This occurs when a claimant attempts to obtain some benefit or advantage they are not entitled to, or when an insurer knowingly denies some benefit that is due.
The insurance fraud mainly affects the money. Insurance fraud causes lot of money loss.
The anti-fraud technology is common in among insurers. It reduces chance of frauds. But still it is not 100% fraud proof. Though most of insurers used it, still insurance sector experienced loss of money due to fraud.
The present invention solves the above discussed problem with the help of block chain technology.
Blockchain is a distributed ledger, which simply means that a ledger is spread across the network among all peers in the network, and each peer holds a copy of the complete ledge.
More specifically, Blockchain is essentially a way of keeping records and can be used in almost any product that uses some sort of record keeping or database management.
OBJECT OF THE INVENTION
The main object of the invention is, fraud detection system in insurance using blockchain technology.
Another object of the invention is, remove unregistered sellers.
Another object of the invention is, reducing premium.
Another object of the invention is, with the help of digital/smart contract it reduces/stop counterfeit.
Other object of the invention is, double booking/spending can be eliminated.
SUMMARY OF THE INVENTION
The present invention discloses a method, system or computer program for aiding fraud detection in insurance by using blockchain technology. The system and method for aiding fraud detection in insurance is comprising of;
Electronic device with active internet connection – used for to open the fraud detection application
Backend server for blockchain technology – To verify all document submitted by requester
It verifies all the document submitted by user. Check premium instalment. If all submitted documents are ok, then insurance is allocated to user. And this data is stored on database in cryptographic form. And new block for this transaction is created and attached to blockchain. So, anyone can see the data about it, but no one can interrupt the process of insurance.
BRIEF DESCRIPTION OF THE INVENTION
Fig 1 shows flowchart of the method and computer program for this invention.
DETAILED DESCRIPTION OF THE INVENTION
The present invention discloses a method, system or computer program for aiding fraud detection system in insurance by using blockchain technology.
Blockchain is, in essence, a digital database (or ledger) distributed across a network of computers.
The records are protected by cryptography and are, therefore, protected against human error, editing and removal. The versatility of blockchain means it is being widely considered as a way to manage financial transactions, asset transfers and regulatory obligations. In particular, blockchain is now seen by many as the future of insurance sector due to its transparency.
The system and method for aiding fraud detection system in insurance sector is comprising of contents;
Electronic device with active internet connection – To create profile of user who want to use insurance web application
Blockchain API (Application Interface)- To Verify all document submitted by user
Backend server – The data is stored in cryptographically form with help of blockchain technology
Insurance Database – This database has all the records of Insurance. In this database data is save in cryptographic form, so no manipulation or editing for change can be done.
The system and method for aiding fraud detection in insurance by using blockchain technology is comprising of the steps are as;
Step 1) User has to create self-profile.
User must have to create the profile on the application with details like Legal name, government-issued Id proof, and designation
Step 2) User has to register insurance form via any electronic device with active internet connection.
A hash for the identity information submitted by the users gets stored on the blockchain.
Step 3) The backend server gets activated and calls blockchain Application interface and verifying the documents submitted by user.
Step 4) If verification results negative then it will message user that verification not done and update right information.
Step 5) If verification results positive then blockchain executes smart contracts specific to requested action.
Step 6) The new registration data is stored in database cryptographically format. This database is on blockchain backend server.
Step 7) The new block of information is created using hash.
Step 8) This new block of information is attached to blockchain.
Step 9) When user fill premium of insurance or apply for insurance claim the record about it is stored in block. This block would hash to blockchain.
Step 10) The new block data is published on every node, who is requested for watch.
But as per blockchain speciality, the data on Blockchain is immutable, auditable and decentralized so cannot be changed by anyone except authority.
The user can see particular insurance policy with this application.
The present invention has advantages such as;
As a smart contract has been created by blockchain, it stops/reduces the counterfeit. For each and every insurance policy is attached to blockchain, true owner can not be counterfeit.
Double spending or booking can be eliminated for claim for accident twice.
As the each and every record of premium and claim is maintained in the form of Block, no one can claim for the same accident.
It removes unregistered sellers and reduces premium.