Tips You Should Know To Avoid Buying Fake Car Insurance

How To Save Yourself From Fraud Car Insurance?

It is common knowledge that car owners need to comply with the legal requirement of four-wheeler insurance besides registration and PUC. Since an insurance policy is a regulatory mandate, it is best to take full advantage of the benefits it has to offer. An insurance policy not only ensures legal compliance, but also provides a robust financial protection for damage to your car. However, the type of policy will determine what is covered within its scope.

In September of 2019, the erstwhile Motor Vehicles Act was amended to include several changes, some of which focused on increasing the penalty for non-compliance with the law. This amendment witnessed the fines going up from the earlier amount of ₹1000 to now being ₹2000 for a first offence, which goes up to ₹4000 for repeated offences. In addition to that, imprisonment for up to three months may be required. This move by the regulator saw a rise in the number of car owners opting for a car insurance policy due to stringent fines.

But as compliance has gone up, so have the cases of fake insurance policies. Scammers are devising new ways to trick unsuspecting people into buying counterfeit insurance plans. Being a fake insurance plan, there is no insurer who will actually make any payment in the event of a claim against these plans. Hence, it is essential to not fall prey to these tactics. This article lays down some of the different tips on how you can buy car insurance online that are nothing but genuine insurance plans.

  1. Buy only through credible sources

Buying through credible sources is the number one tip to remember. This can either be through an insurance agent or directly from the insurance company. To verify whether the insurance company is genuine, you can check for its “IRDAI registration number” as allocated by the regulatory body. You can visit the official website of IRDAI for further details. *

  1. Making payment only through trusted payment channel

Choosing the right payment channel is essential, especially when you are buying the insurance plan online. Fake policies generally suggest you pay by cash, thereby increasing the risk of fraud. You can instead opt for policies where an online bank transfer is available where you receive an acknowledgement of payment. Further, online payments get through within a few seconds, thereby eliminating any lag between the payment and the issuance of insurance coverage. *

  1. Verifying your insurance plan

Whether it is a third party car insurance or a comprehensive car insurance policy, you can verify the policy by entering its details on the insurance company’s website. This facility is made available by all leading insurance companies to enable you to verify your insurance coverage. *

  1. Using the QR code

All fraudulent plans issued are generally imitated to the last full-stop, including the logo and the identification mark. However, the QR code is one of the most difficult aspects to reproduce and, thus, can be used to verify the genuineness of the insurance plan. Such a QR code is printed either at the top or bottom of the insurance policy, which embeds a URL within itself. Tech-savvy individuals can take advantage of this unique checkpoint in an insurance policy. *

* Standard T&C Apply

These are some tips that can help to stay away from fraudulent insurance covers. In addition, remember to use a car insurance calculator that can help to calculate the premium amounts in addition to comparing the policy features of different plans. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.