How to check whether your car insurance policy is fake?

The overwhelming incidence of road accidents in India only indicate the importance of a comprehensive motor insurance policy for every vehicle that hits the road. As per the Motor Vehicles Act, it is necessary for all car owners to have vehicle insurance. The insurance will protect the car owner from financial liabilities such as lawsuits, car repair costs, fire damages, and vehicle theft. Most insuranc

As per the Motor Vehicles Act 1988, every car in India must be insured before it hits the road. Having a car insurance policy safeguards your vehicle in the event of accident, fire, natural calamity, or theft. You also get multiple add-on facilities like personal accident insurance, zero depreciation cover, no claim bonus, etc. with your car insurance. However, car insurance policy purchase involves certain risks as well. While there is a hoard of reliable motor insurers, several fake companies and agents also exist. In fact, incidents of car insurance frauds are on the rise. Buyers who don’t authenticate the insurance provider before policy purchase often end up in crisis. Thus, it is vital to check the authenticity of your car insurance policy and the insurer before making a purchase.

Tips to identify fake insurance policies

Identifying fake insurance providers is not as difficult as you think. You just need to keep in mind a few basic points while deciding on an insurance provider. Here are a few effective tips to check the authenticity of your car insurance policy:

Avoid buying policies from agents

Though a lot of people in India buy insurance policies from agents, this source of insurance purchase is not safe anymore. There are many fake insurance agents who provide false insurance papers and encourage the policyholder to pay insurance premiums offline. Don’t fall victim to such fake agents even if they offer you policies with a lower premium and higher benefits. If you want to buy a policy through an agent, visit the official website of the insurer, go through the terms and conditions, and if you agree with their terms then buy the policy online.

Check the authenticity of the agent

Many people consider buying car insurance policies through agents as they find the process to be hassle-free and less-consuming. If you also feel the same, then before finalising the deal verify the authenticity of the agent. In order to validate his/her identity, check the badge and license number and cross verify it with the concerned authorities.

Do not make any cash payment

Digital payment is safe and fast compared to offline payment. Make your payment via cheque or credit card or net banking. When you make a payment online you know where the money has gone and have all the details of the transaction along with the beneficiary’s account details. In case of any future issue, you will have all the details of the beneficiary along with proof of that payment.

Check the policy online

If your insurance agent introduces you with a car insurance policy that you haven’t heard earlier, check the same in the official website of the concerned insurance company to know about its authenticity. If the agent is offering you a fake policy, you can figure that out instantly and avoid making any deal with the agent.

Cross check with the insurance provider

In an instance where you like a car insurance policy suggested by an agent, don’t take an immediate purchase decision. Rather ask him/her to give you some time to go through the policy details. In the meanwhile, get in touch with the insurance company either by calling on the toll-free customer care number available on their official website or email them your concerns. You can also visit the nearest branch of the company to verify the authenticity of the policy.

Keep the payment receipts

You must keep the payment receipt for every payment that you make online or offline. The receipts will serve as proofs in case any unexpected issue crops up in the future.

Be careful about critical information

While buying a car insurance policy you must be extra vigilant. Check all the important information mentioned in the policy paper like Insured Declared value (IDV), deductibles and No Claim Bonus (NCB) and in case of any doubt get in touch with the insurance provider. Checking the insurance papers is more important when you are offered with a policy at a negotiated rate. In case you find anything suspicious get in touch with the branch without any delay.

Get the app with QR reading

As per the strict guideline of the Insurance Regulatory and Development Authority of India (IRDAI), all insurance companies must have an app with QR code. This ensures the genuineness of the policy since the customers get all update about their insurance policy regularly on the app. If your agent tries to ignore this important thing, you need to be cautious.

Check well before signing

Don’t be in a hurry while signing the policy papers. Insurance policies often come with hidden terms and conditions. Therefore, be patient and read every terms and condition properly. Moreover, check all the vital information mentioned in the application form. All policy details, as well as other vehicle-related information, must be checked thoroughly. Also, make sure to fill up the form on your own. If not possible ensure that the final sign on the document is yours and not anybody else.

Agent Photo ID proof

To be on the safer side, you can ask the insurance agent to proof a photo ID. If the agent is genuine, he/she will never hesitate to provide you the same. In case he/she denies, be wary and avoid buying an insurance policy from the person.

Buying a car insurance policy is an attempt to safeguard your vehicle from accidents and other unexpected occurrences. To enjoy the best benefits of having an insurance policy keep the above-mentioned points in mind before taking the final decision. Remember, just with a little conscious effort you can avoid becoming prey to fake insurers and agents.

Why checking the authenticity of your car insurance policy is so important?

Your car insurance policy is a protection cover for your car which safeguards it against collisions, accidents, and other unexpected events. Hence, it is very important to check the authenticity of your car insurance policy as well as the provider before making a purchase. You would not want to end up with a fake insurance policy and pay for the cost of repair and loss caused to your vehicle out of your pocket.

$LPD_EMBEDDED_ITEM_INSU_3e companies also offer additional benefits such as personal accident cover for the named passengers, No Claim Bonus protection, zero depreciation cover, etc. in the form of add-on insurance coverage.

Commercial entities are also required to buy motor insurance to protect third-parties and their own drivers from accidents. All in all, every vehicle on the road, irrespective of whether it is used for private or commercial purposes needs motor insurance. However, it is crucial that you buy it from a trusted source, as there have been several instances of car insurance fraud in the country, resulting in heavy losses to the stakeholders.

Why Should You Check The Authenticity Of The Insurer?

If you are being offered extremely attractive premium rates on a car insurance policy, you may be tempted to buy the same. However, you should understand the coverage offered by the plan and check the reliability of the insurer in the market before you sign on the dotted line.

Imagine a situation wherein you got involved in a car accident and you realise the fact that there were additional terms/exclusions in the policy document that prevents you from claiming insurance for the damages! In order to avoid such instances, it is best to be well aware of your motor insurance coverage - even if that means you have to unravel the meaning of complicated financial jargons in the policy documentation.

You also have to investigate on the genuineness of the insurance agent from whom you will be purchasing motor insurance. There have been several reports in newspapers detailing insurance fraud through fake policies. So checking the genuineness of the policy you buy is a very crucial step.

How To Check The Authenticity Of The Policy:

Listed below are some steps in which you can check whether your motor insurance plan is genuine or not:

  1. Check the existence of the policy online - You can get details of most car insurance products by visiting the websites of insurance companies. You can also receive this information from policy comparison websites.
  2. Buy from the insurer directly - The presence of intermediaries such as agents in car insurance sales makes the premiums go up, owing to processing and distribution costs. If you buy insurance directly from the website of the insurer, you stand to gain through lower premiums. The online purchase process is also deemed safer than traditional offline channels. In case you are buying from an agent, you should check his/her license as a safety measure.
  3. Get in touch with the insurer - The website of the insurance company usually has a toll-free number on which you can call to get clarifications for your queries. You can call the insurer to understand whether the policy you will be purchasing from an agent is valid or not. Alternatively, you can send an email to the insurer for the same. You can also walk in to the nearest branch of the insurance company and request for validation of the policy.
  4. Pay via cheque or credit card - It is recommended that you always pay the motor insurance premium through a cheque or a credit card. The payment process is safer when you do it online. This way, the payment will be made directly to the insurance company, and you will also have a record of the payment.
  5. Procure the premium payment receipt - Another important thing to do at the time of policy purchase is to ask for a receipt when you make the payment. In case the payment is done through a cheque, you should verify whether the cheque details such as bank name and account information are updated correctly in the receipt you get.
  6. Check essential information - Make sure that all the essential information about the policy is mentioned correctly. This includes the clauses pertaining to Insured Declared Value (IDV), No Claim Bonus (NCB), and deductibles. This is particularly important when you are getting the policy at a discounted rate. It could be possible that the insurance agent manipulated the NCB and IDV values to decrease the premium quote. In case you discover that the NCB or IDV is not mentioned as per your discussion with the agent, you should visit the insurance company to get it rectified. This is a crucial step to avoid hassles later on.
  7. Sign the proposal yourself - After you have verified all the terms and conditions of the policy and the details updated in your proposal form, you should sign it yourself. The proposal form usually contains details about the car’s engine capacity, fuel type, and existing policy details. It is recommended that you fill the form yourself, but in case you are unable to do so, you should sign it personally.
  8. Install QR code reading app - A QR code reading app on your mobile phone can evaluate the genuineness of your policy. The Insurance Regulatory and Development Authority of India (IRDAI) has mandated all motor insurance policies to have a QR code. Once a person scans the QR code, he/she will receive information regarding the policy on a real-time basis.

The aforementioned tips will help you to drive worry-free as your money would be invested safely in a reliable insurance plan. This way, you can enjoy the policy benefits at the time of an accident without any unpleasant revelations.

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