The new Motor Vehicles Act 2019 has been implemented on September 1st and tough times are ahead for violators of traffic rules. Traffic violators are charged hefty penalties ranging from 1,000 to 25,000. Not following traffic rules can actually burn a hole in one's pocket. Within 1 week of implementation, Bengaluru alone has registered 6,813 cases and traffic police have collected Rs 72,49,900.
Because of these new rules, many people are rushing to renew their motor insurance plan to avoid fines. In the last few days, there has been a drastic rise in the issuance of two-wheeler insurance policies. The penalty for driving an uninsured vehicle under the new Motor Vehicles Act has raised. Under the old provision penalty of Rs.1,000 and/or punishment up to three months was levied for driving an uninsured vehicle. But, under the new provision, a fine ranging between Rs 2,000 to Rs 4,000 and/or imprisonment up to 3 months will be levied for driving an uninsured vehicle. This is the main reason for the increase in the issuance of new insurance policies and renewal of old policies.
While renewing motor insurance policies, it is very important to be careful since fake motor insurance policies are on the rise. In India, nearly 1-2% of motor insurance policies issued are fake and the industry is losing a huge amount of money due to this. When you avail a fake motor insurance policy, you will not just lose you money, even your claim will be rejected by the company. So, it is advisable to buy an insurance policy directly from the insurance company or from a reputable aggregator.
In this blog, we will discuss how to avoid availing a fake insurance policy.
1. To avoid getting cheated while availing a motor insurance policy, you should buy it through credible sources. To save money by availing the policy at a discount, avoid buying it from anywhere. It is very difficult to identify if the product is genuine or fake just by looking at the policy so it is always good to avail the policy from credible sources.
2. You should be very careful about the mode, through which you make the premium payment to the insurance company. It is advisable to make the payment either online or through a cheque. In case you are availing the policy offline, you can make the payment through cheque. Through this, you can check the credibility of the company as the cheque should be issued in favor of the insurance company. Avoid making the payment in cash as you might end up receiving the fake insurance policy.
3. You can identify if the policy is fake or not by using the verification link stated on the official website of the company. All you have to do is visit the website and use the verification link to check its credibility. You can also verify the details of the policy by calling the customer care number of the company.
4. Whenever you plan to buy a motor insurance policy, make sure you are buying it from one of the accepted general insurance companies in India. On the IRDAI website, you can identify all the licensed entities along with their details and you can even check the policy’s existence.
5. To cheat innocent people, fraudsters copy all the minute details of the insurance company and come up with the policy document which looks exactly like the original one. In such cases, it is really very difficult to check the genuineness of the policy. So you can make use of the QR Code to verify the policy. QR code will be normally printed on the vehicle insurance policy. If the policy is original, all the details will appear when you scan the QR code.
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