Car insurance is not just a legal requirement; it is a shield that offers four-wheeler owners financial protection against unexpected events. This sense of security is why the number of people purchasing a comprehensive car insurance policy has increased over the years.
Unfortunately, with the rise in car insurance, there has also been an increase in fraudulent activity. However, insurance providers have managed to control car insurance fraud to some extent through their consistent and considerable efforts.
Additionally, you can also play a crucial role in dealing with such situations by being proactive, alert, and informed.
In this blog we will deal with tips to curb fake insurance for cars.
What is Car Insurance Fraud?
Car insurance fraud involves fake insurance companies and agents. These are scammers working together, alluring genuine car insurance buyers with enticingly lower premium rates and attractive deals.
These scammers are very crafty; they have complete details about an individual’s vehicle in order to create a false sense of trust.
When insuring a person under a fake car insurance policy, they provide documents with the logos of reputed insurance companies to make the victim believe that they are covered under the purchased car insurance policy.
6 Tips to Avoid Car Insurance Frauds
Here are some tips to help you avoid fraud while purchasing car insurance online or offline:
- Choose an Authorised Insurance Provider:The very first step to avoid a fake car insurance policy trap is to always purchase a policy from an authorised or reputed insurance company. Not just this, it is crucial to check the licence and credentials of insurance companies before buying a car insurance policy.
- Verify Policy Details:Another significant step to avoid fake car insurance is to verify the policy details. It is prudent to read the policy details thoroughly to avoid any confusion later. If there is any discrepancy in terms of premiums, coverage, and policy duration, verify it with the insurance company immediately.
- Avoid Cash Transactions: Another tip to avoid car insurance fraud is to avoid cash transactions in any way. Keeping track of cash transactions is very challenging. By making a payment using a credit or debit card or other verifiable method, you will have evidence of making a payment.
- Avoid Third-Party Agents: The main reason for car insurance fraud is the involvement of fake third-party agents and mediators. It is best to refrain from dealing with any unauthorised agents while purchasing a car insurance policy. Always purchase a policy with an authorised representative of the insurance company.
- Use the QR Code:The IRDAI has made it compulsory for policies issued to have a QR code. This QR code contains all the details about the policy. Whenever an individual scans the code, they will get the insurance policy details. It is best to check for the QR code when purchasing a car insurance policy to ensure that the policy is not fraudulent.
- Check UID Numbers: Another way to verify whether the purchased car insurance policy is genuine is to check its unique identification number. Every insurance company has a UID number on the policy document. Verify the authenticity of this number from their official channels.
Conclusion
Car insurance fraud can cause individuals financial loss and legal complexities. That is why it is crucial to remain active and alert when purchasing a car insurance policy. By following these safety tips, you can safeguard yourself from potential fraud and its detrimental effects.
