For most of us, insurance fraud means making a false claim. But not many people know that they can be scammed into buying fake insurance. This is especially true in the case of car insurance. Most of these incidents occur when you are not buying your car insurance from a reliable aggregator or directly from the insurance company. You realize your fallacy only at the time of making a claim.
With such fraud cases on the rise; it is imperative to ensure that the car insurance you have purchased is genuine. We share with you six brilliant tips that would help you spot a fake insurance policy and help you make sure that your purchased car policy is genuine. Read on!
- Verify from the insurance company directly
This is by far the easiest way to ensure that your Car Insurance Policy is genuine. All authentic insurance companies today have an online presence and customer care helpline. You can call at their toll-free number and verify that your policy does exist and is genuine. You can even write an email to the insurance company and verify the authenticity of your insurance policy.
- Always make a digital payment
We are used to paying our premium amount via cash or cheque. But these modes of payments have an increased risk of you falling prey to frauds. It is a safer and smarter move to make a digital payment like NEFT transfer or direct account payment or even by your credit or debit card. This way you have all the details of the transaction. You are also able to procure the account details of the beneficiary. In case of any dispute or fraud; you are able to furnish details along with proof of payment and nab the real culprit.
- Never skip on the receipt
It is quite common in India for fraudsters to offer you discounts if you forego a receipt. This is the gravest error you can make. You must always demand a receipt for any monetary transaction you make. Moreover, the receipts must always be saved for record purposes and as a proof of payment made.
- Look for the QR Code
Not many are aware that since December 2015 onwards; the IRDA has made it mandatory for every issued insurance policy to have a QR code. It helps any policyholder to verify the genuinity of the policy. Any policy without a QR code is a major red flag to understand that it is fake.
The verification process is straightforward. You merely scan the QR code from the QR reading app on your smartphone. On scanning it, you will be taken to a web page that would show the status and details of your insurance policy.
- Read your policy paper
Most of us believe that we know everything about our policy and simply put its paper away. But it is critical that we read the fine print of the paper. You must be aware of all terms and conditions and important information like the Deductible, No-Claim Bonus, Insured Declared Value, etc. It might need some changes to suit you better. Moreover, going through the fine print will get the warning bells ringing as fake insurance papers would often have written content that lets you know of something amiss.
- Always buy from an authorized and genuine source
This is the best way to ensure that you do not become a victim of any kind of fraud. It’s best to buy an insurance policy directly from the dealer or with a verified agent. Always ask the agent for their ID card. You can even note down its number and verify it from the insurance company. Verifying the source will help build trust and eliminate all chances of a fake insurance policy.
Your car insurance policy not only proves vital during times of crisis but it is also a mandatory legal requirement. Hence, it is always smarter to be cautious and be proactive to avoid any kind of possible fraud.