Useful Tips to Keep Frauds on Car Insurance at Bay

Car Insurances 614 views

As it is necessary to get your car insured against unforeseen circumstances such as damage, theft, people take insurance cover for their loved possession. But, the incidences of frauds in car insurance sector are rising day by day, making you worried. As per the report of India Forensic Centre for Studies, the insurance sector faces financial losses to the tune of more than Rs 30,000 crores each year due to the frauds. Auto insurance is where frauds are committed the most as people do not purchase the policies directly from the insurance companies or their authorized agents. Even as insurance frauds get committed with inflated or fake claims, but sometimes you may end up buying the forged policy as you would not have taken necessary precaution. Here are some of the tips that you must adopt to keep the frauds of car insurance at bay.

Purchase policy through insurance companies or authorized agents

Make sure you buy car insurance policies from the insurance companies or their authorized agents to avoid being at the receiving the fraud, if committed. When tasked with the responsibility to judge whether the agent is authorized or not, then ask for the license and other documents from the individual. But at a time when frauds are peaking, it won't be a surprise if fraudulent agents make fake license. So, make sure you buy the car insurance policy from the website of the company or any other trusted website. However, you need to keep an eye on the customer reviews with regards to the policy before buying it.

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Call your insurer

If you find anything objectionable or deviating from the stuffs which were told by the salesman or agents of the insurance company, then do call to the toll-free numbers and sending email to the customer care of the insurer as shown on the policy document. You can also visit the nearest branch office to resolve the conflicts.

Ask for receipt

Always ask for a premium payment receipt, which is mentioned by some companies on the policy document under the head 'premium payment details'. But you can get a separate premium receipt if you ask for the same. When you make the payment for premium by cash, then premium receipt becomes all the more important. Verify the authenticity of details of the receipt, such as cheque number, payee bank, date amount, cheque validity and clearance.

Check IDV, NCB and deductibles

After receiving the policy, you must check the Insured Declared Value (IDV), No-claim bonus (NCB) and deductible such as voluntary excess, compulsory deductible & additional compulsory deductible to check the genuinity of the policy. It may seem minor checks, but may prove costly at the time of claims if you fail to do the same. For instance-It may happen that your existing policy gets issued based on incorrect declaration of the claims made on the earlier policy. This may prove to be cost-efficient at the time of taking the policy, but will hit you hard during the time of claim. So, you must ensure to reveal the declaration correctly while showing the details in the proposal form. However, if the NCB is mentioned incorrectly, then take the matter with your insurance company to enjoy a hassle-free claim settlement later on.

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Go for self-signature

Do not allow anyone else to put his/her signature on the proposal form on your behalf. Always go for self-signature as this will help you know what you want. Plus, you can thoroughly check the features of your car. For instance-Your car runs on CNG, but agent being unaware of the same mentions that the vehicle is powered by petrol or diesel, then you will face problem while filing the claim. You know better than the insurance agent with regards to the registration of the car. Means whether the registration of the car is done under private or commercial vehicle category. So, it is necessary to fill the proposal form/cover note and sign the same as well.