Fake car insurance policy is not a new news. Many people get fooled by some fake company or fraud agents every year. Most of the time people get victims of fraudulent car insurance because they buy without proper precautions.
Even in many cases people don’t know that they have purchased a fake motor insurance policy. Mostly, they realize this when file any claim and claim gets rejected.
This becomes very disheartening at claim rejection time because you have paid the required premium for the policy. However, you are not getting a claim because your policy is not genuine.
You need to be very aware and cautious while purchasing car insurance. You need to be safe either you purchase your policy online or through offline.
Table of Contents
- 1 What is Fake Car Insurance Policy?
- 1.1 Avoid Paying Cash Premium
- 1.2 Why Don’t You Verify Your Policy?
- 1.3 You Should Pay Premium Through Online/Cheque etc
- 1.4 Do Not Click on Every Link
- 1.5 Use of QR Code to Avoid Buying Fake Car Insurance
- 1.6 Check Authenticity of Your Insurance Agent
- 1.7 Wrong No Claim Bonus Declaration
- 1.8 Private Vehicle vs Commercial Vehicle
What is Fake Car Insurance Policy?
Car insurance policy is just a piece of paper till you required any claim from the company. Fake insurance policies are sold by fake agents or unauthorized agents by providing you fake policy documents.
They take your money and gives you some duplicate or fake policy documents which are not valid in actual.
Fake insurance agents or companies may target you online and offline both. Mostly they do fraud by taking cash or by providing fake insurance links. You have to very careful when you buy a motor insurance policy.
Following are some important tips which can help you:
Avoid Paying Cash Premium
You should avoid giving cash premium to the insurance agent. Today we are living in the era of technological advancement. Every motor insurance companies are providing online premium payment options.
Even some companies are providing payment through wallet also. If you have paid cash premium then normally fake agents don’t give you any receipt. If they provide it then it will be fake.
In this case you may not be to prove it to legal authorities that you have paid the premium. But if you have paid the premium online then it will be easy for you to prove that you have paid the premium.
Cyber police and insurance companies will also be in a better position to do something to track the fraud agents. Try to avoid cash premiums.
If you want to pay the premium in cash only then you should go to the branch of the company directly. Or you should pay cash premium if you are 100% sure about your insurance agent.
Why Don’t You Verify Your Policy?
This mistake is done by a lot of people in India. People don’t verify their policy after purchasing. Why so? Prevention is better than cure. It will not take so much time to verify your policy from the company.
After doing this small activity you will be sure about your car insurance policy in the early stage. If policy is genuine then it fine but what if it is fake?
Suppose you purchase a car insurance policy and you didn’t verify it. After 8 months your car gets damaged in a road accident and there is a claim of Rs. 1.5 lakh. But suddenly you got to know that your car insurance policy is fake.
It will be very shocking to you. Now you have to bear all the costs from your own pocket. But if you find the authenticity of your policy in an early stage then you can take appropriate action.
You Should Pay Premium Through Online/Cheque etc
You have multiple options to pay the premium. You can deposit your premium by cheque, online or through wallets. These modes of payments are better than cash. You should be cautious about these payment tools also. Nothing is 100% safe.
You never give any blank cheque to your insurance agent. Always fill all the fields like amount, insurance company name, date, etc in the cheque. Most importantly, you should fill the cheque by yourself and by your pen.
Whenever you pay the premium online be sure that you are paying the premium to the genuine insurance company. Make sure that you are paying through a genuine payment link and it is not any fraud.
Do Not Click on Every Link
Maybe you are getting many emails regarding car insurance discount offer on a regular basis. Be careful and don’t click on every link you get in your email box. Maybe some of them are genuine and some may be fraud also.
Before clicking on any link given in your email please double-check that it is genuine. A single click on the fraud link may redirect you on fake insurance premium payment link. Or you can get some other financial hit.
Use of QR Code to Avoid Buying Fake Car Insurance
QR are code is printed on every car insurance policy you purchase. IRDA has made it mandatory to provide QR code on every insurance policy. You can download the QR code reading app from your app store.
You can verify the authenticity of the policy by using the QR code printed on your car insurance policy. When you will scan the QR code of your policy through the app, you will see the details of your policy on the web page.
You can also verify your policy through the verification link of the insurance company also. For this, you can contact your insurance company.
Check Authenticity of Your Insurance Agent
There are a lot of insurance agents in the industry. Many people prefer to buy insurance policies through insurance agents in India. It is your responsibility to have some precautions.
Please be sure that the agent is genuine from whom you are purchasing your insurance policy.
Please ask for an identity card from the agent and also verify directly from the company also. If you are buying from the agent the first time then you need to be sure that the authorized agent of the company.
If you are buying from your regular known agent then in this case risk is less.
Wrong No Claim Bonus Declaration
While buying a car insurance policy you don’t forget to check details of your no claim bonus in your policy. Sometime agent provide you wrong no claim bonus to make your policy cheaper. Sometimes it may be by mistake also.
But You should get the right NCB discount in the policy. Suppose you have a claim in the policy but your agent gives you a discount of no claim bonus.
In that case, normally the company will send you recovery for the amount. But in case you miss depositing the premium then your claim will get rejected if any. The company may also cancel your policy because of claiming the wrong no claim bonus by you.
Private Vehicle vs Commercial Vehicle
Commercial car insurance premium is normally higher than private car insurance. You should check the details of the policy that you have purchased the right kind of policy.
Sometimes agent provides you private car insurance policy rather than commercial. It is because of making a cheaper premium.
Sometimes it is because of mistakes and lack of proper communication also. Your agent doesn’t know that your car is private or commercial and he do the mistake unknowingly.
You should communicate properly to your agent about car details. So, that you get the right insurance policy.
Be Careful While Buying Motor Insurance
Buying a motor insurance policy is a very important decision. Ether you buy a comprehensive car insurance policy or only a third party, you need to have proper precaution.
Verify your policy at the moment and don’t postpone it for later. Any rejection of claim due to fake policy may give you a big shock later.