5 tips to avoid purchasing fake motor insurance

Buying motor insurance is not merely mandatory under the law, it's an important move to safeguard your car, your bank balance, and your peace of mind. Yet with the advent of internet portals and third-party agents, the danger of getting cheated by fake motor insurance policies has grown.

In this blog, we will provide some key tips to help you recognize and avoid fake motor insurance.

What is fake motor insurance?

Fake motor insurance policies are those that are not written by a licensed insurer or do not provide actual coverage. These fake insurers look valid on the paper but they have no value. If a claim is filed, the policyholder will receive no aid, reimbursement, or help, and there will likely be no lead to the person who sold it to them.

How do fake policies happen?

There are several ways fake motor insurance policies circulate:

●        Unauthorised agents: Several people may pretend to be from real insurance companies. They may sell fake insurance documents.

●        Cloned websites or portals: Fraudsters copy the look and feel of real insurance websites. They trick people into buying from fake platforms.

●        Falsified policy documents: Some policies may appear real but are entirely fabricated using stolen logos or outdated templates.

5 tips to avoid purchasing fake motor insurance

Verify the insurance provider’s legitimacy.

The initial and most important step is to confirm whether the insurance provider you are approaching is listed with the Insurance Regulatory and Development Authority of India (IRDAI). All valid insurance companies have been listed in the official portal. If the firm's name is not there, you might have reason to worry.

Check and make sure you verify the firm's contact information, office address, and website as well. Criminals tend to have fake websites resembling the original ones or pretend to represent popular insurers so make sure to properly check every detail.

Make your payments through official channels.

Never make a payment directly to an individual’s bank account.  Payment options from reputable insurers, such as their official website, authorized mobile apps, or verified third-party platforms are safe and traceable. You should get a confirmation email and a digital copy of your policy right away after you pay. It's probably a scam if you only get verbal assurance or a screenshot as proof.

Check to see that the policy has a valid registration number

An Insurance Regulatory and Development Authority in India-registered registration number will be found on all genuine auto insurance policies. The website or the insurer's customer support can be used to cross-check the registration number, which should be included in the policy document. This crucial detail is a clear sign of a scam if the policy does not include it.

Use the mandatory QR code for quick verification.

The insurance regulatory and development authority of India has mandated that all insurance policies sold after December 2015 must include a QR code. The main purpose of this QR code is to help you verify the authenticity and validity of your policy.

All you have to do is scan the QR code using an application from your smartphone, and it will bring up the information of your insurance and insured vehicle. With this smart feature, you will easily and safely confirm whether the insurance firm you are dealing with is genuine.

Look for a valid insurance certificate.

Make sure you get an official and valid certificate of insurance from the insurer once you've purchased your policy. This certificate attests to the insurance policy's current status and legality. Be cautious if the insurer is unable to provide you with this document or offers an e-certificate that does not conform to the standard format of a legitimate business.

What are the risks of fake motor insurance?

Paying for fake motor insurance is as risky as having no cover at all. It is as bad as not having insurance at all.

●        No finance cover: In the event of an accident, you will have to cover the full cost of repairs or third-party claims.

●        Legal consequences: Driving without valid insurance is against the law. It is a punishable offence under the Motor Vehicles Act.

●        Vehicle seizure: Work vehicles may be seized due to inadequate documentation.

●        Loss of finances: Payment for a fake policy is usually not refunded. You may have little or no way to take action against the fraudster.

To conclude

While purchasing car insurance is an essential step in safeguarding your vehicle, it's critical to make sure you're dealing with a reputable company.

You can avoid becoming a victim of fake motor insurance by simply following these tips with a little extra caution and ensuring that your policy is genuine and provides the coverage you need when it matters most.

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