The new regulation for mandatory motor insurance policies has seen a rise in scams regarding fake insurance policies. While it has become a menace in recent years, the intricacies of insurance plans give scammers a chance to defraud the unsuspecting and susceptible population. While insurance is still regarded as a compliance requirement rather than a necessity, it tends to create an ignorance for taking an interest in obtaining a policy from a legitimate source.
Recent amendments in motor insurance policy rules make it mandatory for new vehicle owners to opt for a compulsory third-party cover. These policies which are for three or five years in case of cars and bikes respectively have led to a substantial increase in premium amounts. This rise in premiums makes it a hot ground for the scammers to contact innocent and unaware people to trick them into buying insurance plans. Since these fake policies are offered at a lower price, it is a lucrative option for the insured too. Such cases are witnessed across the country and staying aware of spotting a fake policy is the way to go ahead.
Here are some tips that can help you to avoid purchasing a counterfeit policy –
1. Purchase from Credible Sources
Spotting a fake insurance policy is not feasible. Therefore, you must ensure to purchase your policy from a credible source. Buying an insurance plan directly from the insurance company has become easier. Internet technology has made it feasible to carry out financial transactions through secured networks. Moreover, you can confirm the website through multiple sources too. The same is not possible in case of agents or dealers as they can easily produce dummy documents.
2. No Hassles of Payment
Purchasing an insurance plan via the online channel eliminates the hassles of paperwork involved in case of cheques, demand draft, or even cash. Moreover, there is immediate confirmation in an online remittance to the insurance company. On confirmation, the policy delivery hardly takes another few minutes to reach your mailbox. One can also opt to receive a physical copy of your policy through postal services. This facility can come handy for business entities who wish to buy commercial vehicle insurance.
3. Verification of your policy
The insurance policies issued can be verified using a verification link on the insurer’s website. It can help in confirming the terms of the policy as well as validity by the policyholder. A thorough reading of your policy will help in getting familiar with the various terms and conditions.
4. Purchase from Licensed Insurers Only
When you approach the insurance company for either a bike, commercial, or car insurance, you must check the registration number with the Insurance Regulatory and Development Authority (IRDA), its regulator. A few fraudsters might trick you by preparing forged documents with original logos. You can cross-verify the same on the regulator’s website for its authenticity.
5. Use QR Code
Lastly, insurance policy documents have a mandatory requirement of QR codes. These QR codes can be easily scanned on your smartphones using a QR scanner. Scanning these codes will open the policy details which can be verified before purchasing the insurance plan.
Using these handy tricks, you can avoid being scammed by forged documents. Awareness is the first step of precaution that one can take. Be safe and opt for a genuine motor insurance policy.