How to avoid buying fake car insurance policy  

It is quite common to come across insurance fraud. It mostly arises from policyholders making false claims. However, there is a different kind of fraud that you might encounter if you aren’t too careful. A lot of potential policy buyers have been ripped off their money while buying a car insurance policy just because they weren’t careful while purchasing it. Such a situation is common if you do not buy your policy directly from an insurer or do not opt for buying car insurance online.

It can be quite devastating to find out that the policy you just bought is a fake one. But the most unfortunate part is, that you are most likely to find out about it during the claims process, which can be quite late, to say the least. However, here are a few steps by which you can handle such a situation.

How to handle fake policy papers

Every insurance company needs to be certified by the Insurance Regulatory and Development Authority of India (IRDAI). Every insurance company’s registration number is mentioned on their own website. IRDAI’s website also has a list of certified insurance companies. Verifying your insurance company’s registration number is the best way of avoiding buying a fake car insurance policy online. Here are other important points to keep in mind.

  • Buy online

One of the smartest ways to handle car insurance fraud is to buy car insurance online. You simply need to visit the website of a certified insurer and generate car insurance quote. If you are happy with all the features, terms and conditions, you can proceed with the purchase.

When you ask for a car insurance quote, you more often than not get to know whether an insurer actually exists or it’s a fake company. An agent can run into the risk of selling fake policies, but an established insurer will not. Also, buying online will help you reduce the insurance premium by a considerable margin as well, since you have the option of comparing policies.

  • Speak with your insurer

One of the easiest ways to identify if you are buying a genuine policy or not is to reach out to your insurer. You can either call their toll-free numbers or reach out to them via email and get clarification on the policy that you want to purchase.

  • Check for details

The first thing that you should do on receiving a policy is to check for details such as Insured Declared Value, No Claims Bonus, and others such as deductibles. These might seem like mundane details but can create a lot of hassles during claims. Check the insurance company’s details as well.

  • Proper Signature

Another good habit to inculcate for any financial or car insurance related transaction is not to let anyone else do the signatures for you. You must apply the same thought to the application forms as well. Any signatures on the application form must be done by you and you only. When you do sign the application form, it signifies that you have read all the relevant features, terms and conditions. You must disclose accurate and updated information while filling the forms or engaging in the insurance company’s online purchase process.

Thus, making it a point to fill up your forms and signing them can keep you away from such unwanted claim rejections in the future. Should you opt for car insurance online, you need not worry about the signature-related issues.

  • Acknowledgement

Asking for acknowledgement is a habit that one must inculcate for any financial transactions. Whether you are buying the policy from an insurer or an agent, ensure that you receive some acknowledgement. In most cases, you should receive your car insurance policy document instantly in your inbox. Checking such an acknowledgement can help you figure out if it is genuine or not.

Some precautionary steps and careful inspection of documents or the process can protect you from purchasing fake car insurance.

 

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