How to Check Whether Your Car Insurance Policy Is Fake or Not

According to the Motor Vehicles Act of 1988, all cars in the country need to have insurance before hitting the road. This prevents a lot of problems. Car insurance saves the vehicle during events like natural calamity, fire, accident, theft, and other kinds of damages. Some policy-providers also offer you add-on bonuses like zero-depreciation cover, personal accident insurance, no claim bonus, and much more! However there are some risks in getting a car insurance policy as well.

There is no shortage of fake insurance companies out there. In case of vehicle accidents, they won’t help you. Car accident numbers around the country are on the rise. Car buyers who do not authenticate the reliability of an insurance provider end up with a lot of trouble later on in times of need. In short, it is most essential to check how authentic your insurance provider is. 

How to find out fake insurance policies- Top tips

It is not so hard to find out which insurance providers to stay away from. All you need to keep in mind are a few battle-tried tips. Here’s what you need to do.

1. Do not get policies from agents: Most people get policies through agents only. Most do not approach companies directly, and so meeting agents may not seem like any problem. Besides, it is a convenience, right? The problem is that this is fraught with so many issues down the line. There are many, many fake insurance agents. They’ll sell you the wrong insurance, at best, just to get over with their monthly quota. At worst, you’ll end up with high premium, low benefits, etc. To really get a policy, contact the insurer directly online. Study the terms and conditions carefully.

2. Find out the agent’s authenticity: Getting insurance directly from agents may seem to be less time-consuming and hassle-free. However, you need to check how authentic the professional is. Check the agent’s license number, identity, and do a cross verification.

3. Don’t make cash payments: Cash payments can’t be tracked. In case of problems, you may not be able to give proof of that. Pay digitally, by e-cheque, net banking or by credit card. Record details of all transactions.

4. Study the policy online: You may come across insurance policies you are hearing of for the first time. Before buying, it is only prudent to know if it’s authentic or not. Don’t fall for a fake policy.

5. Cross-check online and ask your insurance provider: Sure, all of this takes a lot of time, but at least you’ll know that the policy or insurance the agent is touting is not a fake.

6. Keep your payment receipts safe: Don’t toss them away to the waste bin. Save them for later on, both online and offline. These shall serve as proof if there’s any unexpected problem.

7. Study the critical information carefully: Save time to study the critical information. Don’t just get insurance because its features look awesome! Check things mentioned in the policy document like No Claim Bonus, Insured Declared value, deductibles, and etc.

8. Get the QR reading app: IRDAI or the Insurance Regulatory and Development Authority of India says that every insurance company needs to have its own app with QR code. This ensures that the policy is genuine, and allows customers to get updates on their policies regularly. If an agent says that there is no such app, don’t buy.

9. Study the document carefully before signing: You are investing a lot of money in insurance. In some ways it is a loss if there are never any accidents, but at least it’s a good thing that the insurance policy is not fake. One way to know if it’s fake or unsuitable for you is to study the offer document carefully. 

10. Get the agent’s photo ID: Get this from the agent. If the agent is genuine, you’ll get this without any problem. 

Why is it so important to check the insurance policy’s authenticity?

Let’s face it. You’ll be putting a lot of money over the years in your insurance policies, whether it is for your health, for your car, for your business, for your home, or life. For a middle class family, this is a considerable investment. You don’t want to find out later that the agent you signed you up is a fake, and that all your initial money given for the policy is stolen! 

Always buy policies from trusted sources.

The need to check the insurer’s authenticity

You will be well tempted to get an insurance policy if the benefits are attractive enough. But you should check if it is reliable or not. You don’t want to know after going through a car accident that your car insurance policy can’t help you since there were additional terms and conditions which you have not read. To avoid things like this, know the insurance coverage well. Know exactly how it will help you, in which circumstances, and how soon. To do this, you’ll have to check whether the agent is genuine or not. There are many fake agents and even fake policies nowadays. 

Tips for checking the policy’s authenticity

Follow these tips to find out if a policy is genuine or not.

1. Check online whether the policy exists or not

2. Buy directly from the insurer

3. Contact the insurer for all queries

4. Pay by credit card or by cheques so these can be tracked later on in case of problems

5. Get the receipt for premium payments

6. Sign the proposal document containing current policy details and vehicle’s features

These tips shall indeed help you to keep you stress-free when you are getting a car insurance plan. Use these while getting any other insurance plans as well.