How to Spot a Fake Car Insurance Policy?

Mandatory requirement of vehicle insurance policies has seen scams start to surface of fake policies being sold. Taking advantage of the intricate details of insurance covers, scammers trick innocent people into buying a counterfeit policy. Since most people still regard vehicle insurance to be more of a compliance requirement than a necessity, there is ignorance in checking the whether a policy is legitimate or not. The Motor Vehicles Act of 1988 makes it compulsory for all vehicle owners to purchase an insurance plan alongside the registration and PUC requirements. Be it a bike or a car, its insurance is a requisite. While a third party car insurance is affordable, comprehensive plans with additional covers can tend to be expensive. Taking advantage of the cost factor, scammers offer bogus plans at a cheaper rate. This makes innocent buyers fall prey to spurious tricks thereby walking into the trap. While it can be difficult on how to beware of these bogus tricks, this article lists down some ways that can help you spot a fake insurance policy and the ways to avoid one.

Purchase through credible sources:

When buying a car insurance policy, make sure to check the authenticity of the insurance company. This is not possible by simply looking at the policy but instead, checking the regulator, IRDAI’s website can help you know whether the insurer is genuine or not.

Selecting the right payment mode:

Payment modes are a critical factor in determining whether the policy is fake or not. For counterfeit policies, such payments are limited to cash thereby increasing the risk. Instead, an insurer with online or other bank transfers are a reliable way to know the genuineness of one. When buying a policy online, it eliminates the hassle involved in issuing cheques, bank drafts or even cash. Moreover, there is instant coverage available from the moment the transaction is successful depending on the policy start date.

Verifying your policy:

Insurance policies can be verified with the help of verification facility made available by insurance companies. In addition, it helps to affirm the terms of your policy. With this feature, you be sure of the policy that is issued being genuine.

Buying from an authorised insurance company:

After shortlisting your insurance plan from the plethora of alternatives, make sure to confirm it from IRDAIs list of authorised insurance companies. The regulator has a list of insurance companies that are licensed to offer vehicle insurance policies. It is advisable you choose to directly buy from the insurance company as it eliminates the changes of forged documents and counterfeit plans.

Verifying using the QR code:

Most of the insurance plans have a QR code printed on the policy document. This can be either found at the top or the bottom. For all you tech-savvy people, this is an effective way to verify the authenticity of your policy since this code embeds a URL within itself. Scammers might be able to imitate other details including the insurers logo but the QR code is difficult to copy. Thus, a QR code helps you to verify the authenticity. These are some nifty ways to spot a counterfeit policy and the different ways that can help you buy only a genuine one. Make use of these smart tips to navigate your purchase since awareness is the starting point of ensuring to get a real policy. 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.