Tips To Avoid Fake Car Insurance Scams in 2023

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The increasing number of Fake Car Insurance Policy Scam cases in India has become a source of concern for insurance companies and policyholders.

According to a report by the Indian Forensic Centre for Studies, the losses caused to the insurance industry by fake car insurance policy scams are more than Rs.30,000 crore per year.

While most insurance frauds are committed by making false claims, fake car insurance policy scams are one of the most common types of insurance fraud in India.

Did you know that an insurance policy you purchased could be a scam? Yes, it occurs when you do not conduct adequate research or take sufficient caution when purchasing an insurance policy.

Unfortunately, many policyholders discover they have a fake insurance policy only after they file a claim. After all, what good is an insurance policy if you don’t use it? It is nothing more than a piece of paper with a seal and a signature.

What Is A Fake Car Insurance Policy Scam?

Fake insurance policies are those that are sold by unlicensed insurance companies in order to profit without providing insurance coverage. It is nothing more than a bogus insurance policy issued by a fictitious company that does not even exist.

Anything is possible in India if currency notes can be duplicated. A bogus insurance agreement can be printed at home by anyone with a basic printer.

Every year, thousands of policyholders fall victim to this scam. Policyholders who put in a lot of thought and research before applying for insurance are less likely to fall for fake insurance policy scam.

When your car is damaged and you need to make a large claim, having a fake insurance policy can give you the shock of your life. If you have significant third-party liabilities to pay, the situation can deteriorate. To avoid such a terrible situation, you must exercise extreme caution. 

Tips To Avoid A Fake Car Insurance Policy Scam

1. Contact Your Insurer Directly

Make sure that you contact your insurance company directly. Regardless of where you acquired your insurance policy, you should always contact your insurer directly to confirm your insurance policy information.

To confirm that you are not the victim of a fake car insurance policy scam contact the insurance company via email or by calling their customer service number and speaking with one of their representatives.

2. Collect Your Receipts

Make it a habit to request a valid receipt for all premiums you pay. If you later discover that you are a victim of a Fake Car Insurance Policy Scam, you can use these receipts to fight the fake insurance provider in court.

3. QR Code

The Insurance Regulatory and Development Authority (IRDA) has made a QR code mandatory for every insurance policy sold beginning in December 2015. The QR code can be used to verify the authenticity of an insurance policy. 

All you have to do is scan the image of the QR code with a QR reading app on your smartphone. When you scan the QR code, a new web page will appear with the status and details of your insurance policy.

4. Read Terms And Conditions

Most of us don’t pay attention to what’s written on the insurance policy. Please read the fine print of your insurance policy carefully.

When you receive your car insurance policy, double-check the important information printed on it, such as the insured declared value, no-claim bonus, and any other deductibles. You might think that these are minor details that don’t need to be checked, but they will matter when you file a claim.

5. Purchase From The Insurance Company Directly

To avoid a Fake Car Insurance Policy Scam, purchase insurance directly from the insurance company. Eliminating middlemen can assist you in obtaining a valid insurance policy.

Choose a reputable insurance company since small insurance companies may compromise your insurance policy. Large groups or institutions cannot afford to do so.

6 .Consider Cashless Payments  

You send the payment directly to the insurance company when you pay online, by check, or by credit card. This will serve as additional proof in the event that you require it later.

Conclusion

According to data released by the Insurance Regulatory and Development Authority of India (IRDAI) fraud monitoring cell, the number of cases of Fake Car Insurance Policy Scam has more than doubled in 2019 compared to 2016.

According to the data, fake policies worth more than Rs. 53 crores were sold in India over the last two years.

All of these fake policies are purchased as renewal policies and contain data that is nearly identical to that of a genuine motor insurance plan, making it difficult to distinguish between the two.

To tackle Fake Car Insurance Policy Scam, insurers have begun to include QR codes on policy documents that can be scanned to verify the authenticity of the motor insurance policy.

Some insurers have introduced ‘3D holograms’ and are training police and other investigators on how to tell the difference between a genuine and a fake insurance policy.

We as citizens too must be aware of Fake Car Insurance Policy Scams and other scams. It is the time now to act against online and offline scams.

Wisdom Ganga is a Blogging Site that Aims to Make People Aware of Online Scam and other Digital Knowledge. 

Scam Topics are very sensitive issues that have taken the shape of Crime. The majority of people are not aware of such things. 

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