Alert! 6 Ways to Stay Safe from Car Insurance Frauds

Posted on: Aug 2, 2023 | | Written by:

Alert! 6 Ways to Stay Safe from Car Insurance Frauds

Published on August 01, 2023. EST READ TIME: 3 minutes

A car insurance policy acts as a major relief when it comes to losses and injuries due to road mishaps. But what if one suffers fraud while settling a claim and has to go to another loss? Well, that sounds like a nightmare. Every year there are many reports of car insurance policy fraud.

Rising awareness and efforts of the insurance companies have controlled car insurance frauds to some extent however, a complete shield against such scams is not guaranteed. The only way to stay safe from car insurance fraud is by being alert and aware. This article will discuss various situations that you must keep in mind so you can catch a scam and stay safe and keep others also safe.

What are the ways to purchase car insurance online?

If you are new to the insurance market and wondering how you can get a policy cover for your car, here is the process mentioned. Purchasing a car insurance policy online is quite comfortable and quick. The steps are:

1. You need to visit the HDFC ERGO homepage

2. Click on the option "Buy" and choose "Car Insurance"

3. You can now get a quote by providing the car's registration number or just by choosing the make and model of the vehicle

4. Once you have the quote, you can choose a plan like comprehensive insurance

5. Make sure to go through all the details properly before proceeding

6. Attach and submit all the documents as required

7. Make the payment to wind up the process.

You will receive a confirmation SMS and email on registered information and your insurer will reach out soon. Remember, a minimum of third party insurance is mandatory as per the Motor Vehicle Act, of 1988.

Things to keep in mind to avoid fraud

In car insurance fraud, the policyholders are sold car insurance policies by fake insurance companies. You simply pay for nothing in return, unlike an actual insurance policy where you get the required coverage. Here are ways in which you can spot the fraudulent cases:

1. Fake insurance agents

Car insurance agents make the policy purchasing method easier. They help you understand all the terms and clauses without you having to do the effort. However, along with this benefit comes the risk of scams as well. The market is also full of fake insurance agents who only manipulate you to purchase a fake insurance policy. They handover you the policy papers that look exactly like an insurance document and ask for the payment.
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In such a situation, all you have to do is directly connect with the insurance company. Ask them about the policy details and crosscheck about the agent. This way, you may be able to avoid the scam.

2. Receipts make a legal battle

For every payment that you make at a car insurance policy company, you should ask for the receipt. The receipt may be online or offline. Do not forget or skip this step. There are chances that you may receive a fake receipt.
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With payment receipts, fighting a legal battle against fraudsters becomes easier. So, keep all the receipts safe.

3. QR Code method

The IRDAI (Insurance Regulatory Department and Authority of India) has made it mandatory for all the policies issued from 2015 to have a QR Code1. This QR Code, when scanned, gives all the details of your car insurance policy.
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When you purchase a car insurance policy, you must look out for the QR Code. Scan the same to check the policy details. Avoid purchasing a plan that does not have a policy QR code.

4. Read the fine print

Undoubtedly, policy documents are hectic to read. However, it is an essential step that must not be skipped. Many policyholders simply sign the papers without going through the papers completely. It gives fraudsters the leverage to manipulate you.
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Take your time and read the fine print. You may also share papers with your family members available and ask them to crosscheck as well. Proceed only if you find everything authentic.

5. Prefer connecting with the insurer

Connecting directly with the car insurance company is one of the best options to avoid scams. The fraudsters always try to convince you to make the payment and purchase a policy through them. However, it is recommended that you try to purchase the policy directly with the insurance company or at least check the details with them.
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You can quickly purchase a car insurance policy online. You may also write to your insurer via SMS, Email, or call them regarding a policy and get all the details.

6. Avoid payment in cash

Cash payment may not have sufficient proof. Hence, it is always recommended to make digital payments in such situations so you have payment proof that can help you out in case of any scam or fraud.
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Insurance companies never force you to make cash payments. They are comfortable with any sort of payment, be it cash, UPI, credit/debit cards, or cheques. If your insurance agent is forcing you for a cash payment, you must get an alert.

FAQs

1. How to spot a fake insurance policy?

One must be aware and alert to avoid policy scams. You must crosscheck all the details directly with the insurance company prior to making the payment. Also, do not skip reading the policy papers. In case of any doubt, do not proceed without a proper investigation with the insurance company.

2. How can I quickly trace the information on my car insurance policy?

For every policy purchased after 2015, there is a QR Code assigned by the IRDAI that helps get all the policy details with a QR scan.

3. What to do if I face a car insurance fraud?

The very first step is to connect with your insurer and report the matter. Next, you must file a police complaint and continue with proceedings to help the police catch the fraudsters.

Conclusion

To wind up, it is always the best option to trust only authentic websites and insurance companies. Not just agents but fake insurance companies may also conduct fraud. Whenever you are planning to purchase an insurance policy, make sure to cross-check all the details with the car insurance company and the QR code. You can also check online if the companies exist or not. Be alert and be safe. When you avoid and report car insurance fraud, you assure the protection of others as well.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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