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How To Avoid Motor Insurance Fraud?

IamCheated.com Research Team | December 11, 2018  5:05:pm

Frauds happen in almost all sectors. Fraudsters find new ways each day, to dupe innocent people of hard earned money. People get cheated in almost all places starting from buying clothes online to availing insurance via insurance agents. The most common fraud that happens in the insurance sector is fake motor insurance policy. Motor insurance is the largest part of general insurance in India and more people avail motor insurance, compared to any other insurance policy. As a large number of people avail motor insurance, frauds too are rising rapidly.

Many victims of fake motor insurance plans do not know they have been cheated, unless they make a claim. Usually, motor insurance fraud takes place when you buy a policy with the person who is not authorized to sell. So, it very important to identify if the policy you are planning to buy is genuine or not.

What is motor insurance?

Motor insurance is the insurance availed on your vehicle and includes both two-wheelers and four-wheelers. Availing motor insurance is mandatory in India. You must avail a motor insurance plan when you purchase a new vehicle.

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How To Avoid Motor Insurance Fraud?

This is how to save yourself from motor insurance fraud:

1. Fill the proposal form yourself

People depend on insurance agents to fill proposal form. But, it is not a good idea. There are chances of an agent giving false information to make you avail the policy. So, it’s advisable to fill the proposal form yourself. This will help you know what is covered and what is not covered under t he policy. Also, you must retain the copy of the proposal form for future reference.  

2.  Avail policy directly from insurance companies or through authorized agents

You can avoid purchasing a fake insurance policy by directly availing from the insurance company or from authorized insurance agents. You must check the agent's IRDA issued license before purchasing the policy. It is not very easy for fraudsters to make forged licenses. You can stay away from fraud by availing policy online, directly from the insurer. At the same time, you must be careful while buying a policy online as there are many fake websites. It is advisable to check the reviews and authenticity of the website before moving ahead.

3. Contact the customer care of the insurer

You can cross-check the authenticity of the policy by calling the customer care of the insurance company. It is the easiest method to know if the policy exists or not. After purchasing the policy, if you feel the policy does not match your requirements, you can return it within the free-look period. Usually, insurance companies provide 15 days free-look period on life insurance plans.

4. Check the fine print

You must go through the fine print and terms and conditions before signing the policy documents. Not reading the fine print can lead to problems in the future.

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5. Collect the receipt

If you have paid premiums through cash, do not forget to collect the receipts. There are chances of insurance agents running away with your money without giving any receipt. Go through the details mentioned on the receipt. To avoid this kind of risk, you can make the payment through online modes.

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