The growing number of insurance fraud cases has become a concern for insurance companies and policyholders in India. According to the Indian Forensic Centre for Studies report, the losses caused to the insurance industry due to frauds are estimated to be over Rs.30,000 crore every year. While one may think that insurance frauds are generally committed by making false claims, fake insurance policies are one of the leading types of insurance fraud in India. Did you know that an insurance policy purchased by you can be fake? Yes, it happens when you do not research well or take enough precaution while buying an insurance policy. Sadly, many policyholders realise that they have a fake insurance policy only when they make a claim. After all, what is a insurance policy till you make a claim? It is just a piece of paper with a seal and a signature.
What is a fake insurance policy?
Fake insurance policies are those policies that are sold by unauthorised insurance companies with an intention to make money without providing the insurance coverage. It is nothing but a fake insurance policy from a fraudulent company which does not even exist. If currency notes can be duplicated in India, anything is possible. Anyone with a basic printer at home can print out a fake insurance agreement. Every year, there are thousands of policyholders who fall for this scam. If policyholders give a lot of thought and research well before applying for an insurance, they won’t fall for fake insurance policies. Owning a fake insurance policy can give you the shock of your life when your car is damaged and you need to make a big claim. The situation can get worse if you have large third-party liabilities to pay. You need to be extremely careful to avoid such an awful situation.
Ways to spot a fake insurance policy:
- Make sure you contact your insurer directly: Any agent or dealer can print a fake insurance policy and hand it over to you. Irrespective of where you got your insurance policy from, always contact your insurer directly and confirm your insurance policy information. You can write an email to the insurance company or call their customer care number and talk to one of their representatives.
- Gather your receipts: Ask for a receipt for every payment. Make it a habit to request for a valid receipt for all the premiums you pay. Should you later find that your insurance policy is fake later, you can use these receipts to fight the legal battle against the fraudulent insurance provider.
- QR code: Insurance Regulatory and Development Authority (IRDA) has made a QR code mandatory for every insurance policy that is sold from December 2015 onwards. The QR code helps one to verify the authenticity of the insurance policy. All you have to do is scan the image of the QR code using a QR reading app on your smartphone. As soon as you scan the QR code, you will see the status and the details of your insurance policy in a new web page.
- Read your insurance policy: Most of us do not give importance to what is being printed on the insurance policy. Please take some time to read the fine print of your insurance policy. Once you have received the car insurance policy, make sure you have checked the important information printed on it like the Insured Declared Value, No-claim Bonus, and any other deductibles. You may think that these are minor things that don’t need to be checked but these are the very things that will matter when you file a claim.
- Buy directly from the insurance company: To avoid fake insurance policies, make it a point to buy insurance from the insurance company directly. Eliminating middlemen can help you own a valid insurance policy. Also, make sure you choose a reputable insurance company as small insurance companies may compromise on your insurance policy but popular companies can’t afford to do that.
- Consider paying online/by cheque/credit card: By paying online or paying by cheque or credit card, you send the payment directly to the insurance company. This will act as an additional proof in case you need it later.
To sum up, it is always advisable to check the validity of your insurance policy. If you are planning to , visit reliable websites like BankBazaar to compare a wide range of insurance options. This website not only allows you to compare various financial products but also lets you apply for them instantly.
- All You Need To Know Before Insuring Your Car In India
- Looking To Switch Insurance Companies? Read This
- Keep These Points In Mind Before Renewing Your Auto Insurance Policy
- Why Your Car Insurance Claim Was Denied
- Consumables Cover In Car Insurance - Coverage And Claim Process
- The Engine Protect Add-on Cover In Car Insurance Demystified
- Incorporate Changes In Your Car Insurance Policy Through Endorsements
- Why Should You Insure Your Car?
- Saving Money On Car Insurance Is This Easy
- When Should You Get Your Car Inspected?
- How Engine Capacity Of Your Car Is Important In Determining Its Insurance Rate
- When Should You Not Claim Under Your Car Insurance?
- Online Or Offline Purchase Of Motor Insurance - Which One Would You Choose?
- How To Detect Fraudulent Car Insurance Policies
- All You Need To Know While Insuring Your CNG Vehicle
- Points To Note Before Cancelling Your Car Insurance
- What You Should Know About IDV In Car Insurance
- How Insurers Calculate Premiums In India
- Get Adequate Protection Through Car Insurance Add-on Covers
- Bajaj Allianz Car Insurance Customer Care
- Bharti Axa Car Insurance Customer Care
- Chola Ms Car Insurance Customer Care
- Future Generali Car Insurance Customer Care
- HDFC ERGO Car Insurance Customer Care
- IFFCO Tokio Car Insurance Customer Care
- Liberty Car Insurance Customer Care
- Magma Hdi Car Insurance Customer Care
- National Car Insurance Customer Care
- New India Car Insurance Customer Care
- Oriental Car Insurance Customer Care
- Reliance Car Insurance Customer Care
- Royal Sundaram Car Insurance Customer Care
- SBI Car Insurance Customer Care
- United India Car Insurance Customer Care
- Universal Sompo Car Insurance Customer Care
GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017