How to check whether your car insurance policy is fake?

The word ‘insurance’ is meant to put you at ease because it is a promise to safeguard you against an untoward event. Insurance is a kind of security; it signifies that a person has entered into an agreement with a company which promises to compensate him for any loss incurred, against the payment of specified premium.

However, what will you do when your very guarantors take you by complete surprise with their deceitful ways? There has been a growing number of fraud cases in insurance sector, and the auto insurance sector is not far behind. Motor insurance is the largest and most profitable sector in General Insurance business. It is therefore very important that as a car owner, you should know how to check whether your car insurance policy is fake while buying a car insurance policy.

So, imagine a situation where you have bought a new car. It is indeed a great achievement in your life. You would naturally like to insure your prized vehicle against events like theft, accident and other kinds of damages. You go through schemes offered by different insurers and decide to buy the one that suits you with respect to coverage, a premium to be paid etc. But how will you check whether your car insurance policy is fake or genuine? Yes, in today’s times, you have to be prepared for any eventuality and must be well-equipped to do a due diligence to buy that perfect policy that is also credible. God forbid, you don’t want to be in a situation where your prized possession has undergone unexpected damages, and you find in the last moment that you won’t even recover the insurance money because all along you were paying a premium to a fraudulent company.

So how will you safeguard yourself against fraudulent car insurance companies? Here are a few simple pointers on how to check whether your car insurance policy is fake or not:

1. Call the insurance company’s toll-free In case the toll-free number is not given, contact them over email or visit the nearest branch. All of these details or at least one of these details will ideally be given in the policy document if it is a genuine company. This is certainly one effective way to check whether your car insurance policy is fake or credible.
2. Make sure to ask for a receipt after making a premium payment. This is particularly important when making a payment by cash. The details mentioned in the receipt must be correct. That is, it must mention details like cheque number, payee bank, premium amount, date of payment correctly.
3. While buying a policy, you must check for accuracy of details mentioned like Insured’s declared value, No claim bonus, deductibles like compulsory deductible, voluntary excess, and additional compulsory deductibles. Insurance companies that are genuine and responsible always look for correct declarations in the proposal form for a smooth settlement, later. Insurers that ask you to cut corners to work out that ‘dream deal’ are the ones who give the first red flags, and this is a reliable way on how to check whether your car insurance policy is fake.
4. Refrain from allowing others to sign the proposal form on your behalf. If you allow someone else to fill the form on your behalf, it is possible that some wrong details may get furnished even unintentionally. This can be a hindrance at the time of settlement of claims. Even seemingly minor errors like documenting your car as a ‘petrol car’ when it is a ‘Diesel Car’ can create problems at the time of settlement.
5. Make payments through secured means like cheque or online payment. Moreover, make the cheque in favour of the insurance company and never in the name of any individual in the company.
6. Make sure you click on a policy verification link on the website of the insurance company. This is a very good way on how to check whether your car insurance policy is fake because fraudulent players will not have the facility to validate the policy on their website or even have legitimate websites.

Finally, make sure that you buy your auto policy only from a recognized motor insurance provider. This is a must-do for you if you want to purchase car insurance and if you want to check whether your car insurance policy is fake.

Last but not the least step on how to check whether your car insurance policy is fake or not is to verify your policy. For fraudsters, it is a very easy job to copy the logo of a legitimate insurance company and fool the public. You need to visit the nearest branch of the insurance provider and verify if your policy exists. You may be able to do this online by visiting the company’s website. The IRDA too is taking steps to safeguard consumers from fraudulent car insurance providers. For example, it has made it compulsory to print the QR code in the policy documents of all policies sold after December 2015. You need to scan the QR code in the policy document. A genuine policy will displays details like status of your policy and information about your insured vehicle.

Staying vigilant is the only way you can protect yourself from unwanted monetary and mental stress of fraudulent car insurance schemes. All you have to do is perform the simple verification measures and be aware of the red flags, and you will know whether your car insurance policy is fake or one that is intended to fulfil its purpose- protect you from uncertain losses.