A popular way people get scammed in our country is by buying fake insurance policies and not realizing they have been conned, until they make a claim. Save yourself from such a shock by avoiding the fake policy trap with these smart tips.
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Rely Only on Credible Sources
It’s not easy to tell if a policy is genuine or fake by merely looking at it, thereby making it important to deal with only credible sources. It’s always safer to buy an insurance policy directly from an insurance company and to eliminate the middlemen, because any dealer or agent can easily print and give out a fake policy.
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Buy the Policy Online or Pay by Cheque
In this day and age, buying an insurance policy online is the way to go. It’s not only convenient but also avoids all risk as the payment is made directly to the insurance company. In case you are buying it offline, make sure to make the payment by cheque. Ensure that the cheque is in the favour of the insurance company and not in the favour of any individual.
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Read the Policy and Verify Using the Verification Link
It’s essential to take a few minutes and read the policy thoroughly. Most insurers now offer a policy verification link on their website, which you can use to confirm the validity of your car insurance policy. In case of further assurance or to clarify details, you can also contact the customer service of the insurance company.
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Buy the Policy from Licensed Insurers
Currently in India there are 33 recognized and accepted general insurance companies. To eliminate the risk of buying a fake policy, you must buy your insurance policy only from one of these 33 insurance companies. You can check the list of these licensed companies on the website of the Insurance Regulatory and Development Authority (IRDA).
Con artists, however, find a way to duplicate the logo of these companies and still manage to sell fake policies. This calls for an additional safety measure, which is checking the existence of the motor insurance policy. You can do this by simply visiting an official branch of the company in your city or going to their website or writing to them.
For all insurance policies sold from December 2015 onwards, the IRDA has made printing of a QR code mandatory on them. The basic purpose of this QR code is to help you verify the genuineness and legitimacy of your policy. You simply have to scan the QR code on an app in your phone and it will present to you the details of your policy and of the insured vehicle.
With these smart ways you can now avoid falling into the trap of fraudsters and protect yourself against buying fake policies.
Why should you check if the insurer is genuine?
It is important to research and buy your four-wheeler insurance from a trusted insurer because of the following reasons:
- To ensure your car is truly protected: A fake car insurance policy offers no real coverage. In case of accidents or damages, you won’t be able to claim any benefits, leaving you financially vulnerable.
- Legal compliance and peace of mind: Driving with a fake insurance policy is equivalent to driving without insurance — it’s illegal and can lead to fines, penalties or even legal action.
- To avoid financial scams: Fraudulent agents may disappear after collecting payment, leaving you with no policy and a lost premium. Verifying the insurer helps you avoid these scams.
- Claim process transparency: Only genuine insurers provide clear, streamlined claim procedures — especially important for comprehensive car insurance, which covers a wide range of damages and incidents.
- IRDAI-backed protection: Legitimate insurers are registered with the IRDAI, ensuring they follow regulations and offer valid car insurance products with proper customer support.
Conclusion
Buying car insurance is a simple but important step that takes care of your vehicle and finances as peace of mind. You can ensure you are protected from potential scams by putting in a few extra minutes. You can research on your own or get in touch with the customer care department of the insurer to answer all your queries before locking in a policy.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.