How to be safe from Motor Insurance frauds?

Many auto insurance policy buyers come to know about fraud only when they submit a claim. It is common that people buy auto insurance from agents, who are actually not authorised to sell the policies, which can result in such frauds.

Oct 28, 2015 10:10 IST India Infoline News Service

Car insurance
The incidents of frauds are already on a rise as imposters find new ways to dupe investors. One such fraud, which is becoming a case of concern, is fake auto insurance policies. Though insurance companies have staged many initiatives to curb the incidents of frauds, the same cannot be eliminated completely.

Many auto insurance policy buyers come to know about fraud only when they submit a claim. It is common that people buy auto insurance from agents, who are actually not authorised to sell the policies, which can result in such frauds. At the same time, many policy holders pay the premiums regularly but have no knowledge of the fraud.  Thus, it is the onus of the policy buyers to check and identify their auto insurance policies to ensure that they are not a victim of such incidents.

Here are the ways to find out genuineness of the auto insurance policy.

Fill in the form on your own- One of the biggest mistakes policy holders make is that they rely on their agent to fill the proposal form or cover note. However, one should carefully note that the information filled in the form is considered as final and binding. Thus, one should fill the form themselves and ideally retain a copy of the same for future reference.

Call customer-care - A policy holder should always reach out to the customer care of the insurer to cross-check if the policy sold to him/her also exists in the records of the insurer. It is one of simplest and easiest methods to check the validity of the policy.

Check fingerprint - No matter how boring it sounds, but go through all the finer detail such as no claim bonus, insured’s declared the value and the deductibles. Any error or left out details here can directly point to a fraud.

Receipt Is A Must - A genuine payment always gets a receipt. Therefore, one should be insisting on getting a premium payment receipt, particularly, when the amount is paid in cash. As far as possible, one should avoid making cash transactions and should cross check the payment details with that mentioned on the receipt.

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