Tips to Avoid Buying Fake Motor Insurance Policy
As per the Motor Vehicles Act of India,1988, it is mandatory to insure your vehicle. The Act demands car owners to at least have Third-Party Liability insurance policy before their car runs on Indian roads. Motor insurance is a protection against financial losses if there is an accident or damage incurred by your vehicle.
The motor insurance policies available in the market
Two types of motor insurance policies are available currently to take up. They are:
- Third-Party Liability policy: This policy safeguards you against the financial claims made by a person who gets injured or his property gets damaged by your vehicle.
- A Comprehensive Plan: This includes both the mandatory Third-Party insurance and also provides you, the owner of the vehicle, a cover for damage. Add-ons like Return To Invoice, Roadside Assistance, and Zero Depreciation Car Insurance are also available to bolster your Comprehensive plan for further benefits.
IRDAI's fraud monitoring cell reports that fake motor insurance policies have more than doubled in the last two years, as indicated by our honourable Finance Minister Nirmala Sitharaman in the parliament this July. These are the policies that are sold by unauthorized or fraudulent insurance companies to collect money from premium payments without providing insurance coverage.
Tips To Avoid Buying Fake Motor Insurance Policy
Make thorough background research about the companies
There are many insurance companies offering motor insurance plans. An online study of these companies through an authentic site is always advisable. It will help you in selecting a program most suitable to your needs and an insurance company providing the same.
Contact your insurer
Anyone can easily print a fake insurance policy and deliver it to you. It is wise to contact your insurer directly. To be further sure, you should call their customer care number to talk with one of their representatives or write an email to the insurance company.
Don’t forget to collect your receipts
You must ask for a valid receipt for every payment that you make towards your motor insurance policy. These receipts will help you fight the legal battle, if required, against the fake insurance providers.
Use QR Code
From December 2015 and onwards, IRDAI has made QR code mandatory for every insurance policy, which is the best way to check how authentic the policy is. Ensure your policy document has the QR code.
Read your insurance policy
Please read every clause mentioned in your insurance policy very sincerely. Check the vital information like No-claim Bonus, the Insured Declared Value, etc. These are very details that will matter at the time of making a claim.
Practicing caution, being alert, and doing your research can protect you from falling victim to a fake motor insurance policyholder.