There are various types of risks involved in life insurance which on undiscussed and published through different social media and life insurance fraud of increasing since few years and therefore there is a need to curtail on life insurance fraud. India is one of the fastest growing economics and so is the case with the countries insurance sector the significant role that fraud plays negatively affects by insurance sector is often under reported or discounted there is general consequences in the market this fraud cases have been significantly increasing fraud, increase the lost of insurance resulting in servers loosing to their competitor and at the some time the policy holder and up paying high premiums as Indian insurance matured fraud risks an agreement is going to be major concern for insurers and business leaders insurers will need continuously reassess there processes and policies to manage and migrate the risk of fraud. The amount involved in insurance fraud has certainly increased as insurance made its transactions into modern consumer society. The insurance industry has been a problem of increasing prevalence and of sizeable proportions insurers who have been passed the cost of fraud on to their policy holders in the form of increase premium rates as well as other stake holders such as legislatures prosecutors judges and consumers interest groups have started to realize that the fraud problem can no longer be ignored insurance fraud is relatively simple to commit easy get away with and seemingly considered fair game and even legitimate by a significance minority of population but it is illegal cause the insurance companies millions of pounds and is by no means victimless. A very vital challenge for the life insurance sector due to the fraud risks the increasing instances of frauds and growing scale of risk demand that insurance companies regularly evaluate their policies, conduct checks and adopt new and advance techniques to curtail such issues. The essential components of frauds are the intent to deceive and the desire to induce and organization to pay more them it otherwise would. We have to conducted the insurance fraud survey to assess the fraud scenario. The potential risk exposures the economic impact and the industry practice to counter fraud risk. So lastly insurance fraud need to be controlled.