How to Check Whether Your Car Insurance Policy is Fake?

Deal with Credible Sources 

Initially, it is not easy to identify whether a car insurance policy is fake or genuine by simply going through it. Hence, it is advisable to purchase an insurance policy only from credible sources. You can purchase a car insurance policy directly from the insurance provider in order to eliminate the involvement of middlemen. This is because an agent or a dealer can easily make a fake policy. 

Read the Policy and Verify Through the Verification Link 

It is highly advisable to read the policy carefully. Many insurers provide a policy verification link on their official website which the policyholders can use to confirm the validity of their car insurance policy. If the policyholders have any query or issue, they can get in touch with the customer support team to clarify their doubts. 

Buy the Policy Online or Pay by Cheque 

In the world of digitization, purchasing a car insurance policy online is the most preferred option. Purchasing a policy online is not only convenient but it also avoids all sort of risks as you are making the payment directly to the insurer. On the other hand, if you are purchasing the policy offline, we would advise you to make payment by cheque. Here you have to make sure that the cheque is in favour of the insurer. 

Ensure You Get Your Payment Receipts 

Whether you have made the premium payment online or offline, it is important to keep the copies of all your premium payment receipts for future reference. You have to do so till the validity of the car insurance policy. 

Check the Essential Details 

Certain important details like Insured Declared Value (IDV), premium rates, No Claim Bonus, deductible, and others should be checked before you finalise a policy. Also, you have to go through the terms and conditions thoroughly and ensure that everything is covered.  

Check the Validity and Existence of the Policy 

Do not sign the policy documents hurriedly. Take your time. Many insurance policies come with various hidden terms and conditions. Check all the details and authenticate the validity of the insurance policy. 

Don’t Let the Insurance Agent Sign the Policy Papers on Your Behalf 

Many people purchase insurance policies from insurance agents. However, it is advisable to be cautious and validate their identity before purchasing the policy. Also, don’t let the insurance agent sign the policy document on your behalf. 

Verify Through the QR Code 

The Insurance Regulatory and Development Authority of India (IRDAI) mandates that all insurance policy documents should have a QR code to authenticate the policy. You can use this QR code to verify the policy. 

Why Checking the Authenticity of Car Insurance Policy is so important?

1. 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.
2. The 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.
3. 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.

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.

Why Should You Check the Authenticity of the Insurer?

1. 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.

1. 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.

1. 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.