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How to identify a fake Motor Insurance Policy?

IamCheated.com Research Team | September 06, 2019  6:16:pm

How to identify a fake Motor Insurance Policy?

If you own a vehicle, you must avail a motor insurance policy. In India, availing third party liability insurance plan is mandatory. Third-party insurance covers the damage caused to a third party or his/her property.  Comprehensive Motor insurance also includes own damage cover, arising out of the damage or theft of the vehicle. 

As it is mandatory to avail third party insurance in India, the demand for motor insurance is rising. There are many companies in the market which offer motor insurance to people.

As the demand for motor insurance is on the rise, insurance frauds are increasing.  As per estimates, about 1-2% of the total motor insurance policies are fake in India, and due to this, the industry is losing crores of rupees each year. If you are not careful while availing an insurance policy, you might end up receiving fake insurance. When you avail a fake insurance policy, you will not just lose your money, even the claim which you make would be rejected. 

There have been many such cases in India. A few months back a man from Secunderabad cheated 183 people of Rs 13 Lakhs by offering a fake insurance policy in the name of Bajaj Allianz.

In this blog, we will discuss some ways which can help spot a fake motor insurance policy.

How to identify a fake Motor Insurance Policy?

1. Contact the insurance company

To identify whether the policy which you have received is a fake, you can contact the insurance company directly. You can either send them an email or call up the number which is mentioned in the policy document. In case there is no customer care number, you can visit the nearest branch.

2. Demand for the receipt

After you pay the premium on the insurance policy, you must demand a receipt. Some insurance companies mention this in the policy document, but also provide a separate premium receipt if demanded. You should not fail to collect the receipt if you have paid premiums through cash. Make sure that all the details provided in the receipt are correct.

3. Check IDV, NCB & Deductibles

To make sure the policy which you have received is genuine, you must check the IDV (insured’s declared value), NCB (no claim bonus) and the deductibles. Deductibles consist of voluntary excess, compulsory deductible and additional compulsory deductible. Not checking these at the time of receiving a policy; make cause problems during the claim settlement.

4. Signing the proposal form

The signature on the proposal form must be done by the policyholder himself and nobody else should be allowed to do this. This is because, you will get to know all the details and you can crosscheck the features. When you let the agent sign the proposal form on your behalf; he might hide certain facts from you. This may cause you a problem while making the claim.

See Also: 5 Motor Insurance Terms You Must Know

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