How to Spot a Fake Motor Insurance Policy and How Can You Avoid It?

The mandatory requirement of an insurance policy has witnessed a rise in scams that have surfaced about fake insurance policies being sold. The intricacies of insurance plans help scammers trick unsuspecting and susceptible people into buying their counterfeit insurance policies. Since the perception about insurance is still more of a compliance requirement rather than a necessity, there is often ignorance to check the legitimacy of one. 

The Motor Vehicles Act makes it mandatory for all vehicles to have an insurance cover. To add to it, these policies are for either three or five years depending on either car or bike which further increase the premium substantially. The increased premium makes it a hot ground for the scammers to contact innocent and unaware people to trick them into buying insurance plans. Since fake insurance plans are offered at a cheaper price, many fall prey to these tricks and end up with a fake insurance cover. These cases are on the rise and it is critical for you to stay aware of how to spot a fake insurance plan. 

Here are some tips that can help you in identifying a counterfeit policy and how to avoid it: 

Buying through credible sources: To avail a vehicle insurance policy at an affordable rate, do not purchase the policy from an unreliable insurer. Just by looking at the policy, it is difficult to tell the genuineness of one. You can avoid getting a fake policy by checking the IRDAI website. 

Payment mode: Your payment mode plays a critical role in identifying whether it is a counterfeit policy or not. Thus, try making payment either online or through a cheque in case of offline purchase. Payment via cash increases the risks of getting a fake bike or car insurance cover. Moreover, purchasing via the online channel eliminates the hassles of paperwork involved in case of cheques, demand draft or even cash. Also, there is immediate confirmation in an online remittance to the insurance company. 

Verification of your policy: All insurance policies can be verified using the verification portal made available by your insurance company. It further helps to confirm the terms and conditions of your policy too. Ensure you thoroughly read them and familiarise yourself with the terms and conditions of your motor insurance cover. 

Purchasing from a licensed insurer: Once you have shortlisted a policy for final purchase, make sure to verify it from IRDAIs website. The regulator’s website has a list of all licensed insurance companies as well as its plans. It is advisable to buy directly from the insurance company thereby eliminating the chances of forged documents and counterfeit plans. 

Verifying using the QR code: If you are a tech-savvy person, all insurance policies have a QR code printed either at the top or the bottom of your car or bike insurance policy. Scanning this code will help to verify the authenticity of the insurance plan. Often fraudsters and scammers try to imitate all the minute details including the logo but a QR code is difficult to copy. Thus, it helps you check the genuineness of your policy. 

Now that you are aware of how to identify one, make the best these tips and ensure genuine purchase of motor insurance cover. Awareness is the first step of precaution that you can take. Stay aware and stay insured!