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March 15, 2023

How To Stay Protected Against Insurance Frauds?

Since the outbreak of COVID-19, the prevalence of online banking has increased. While basic travel insurance international or domestic plans cover medical emergencies, comprehensive travel insurance policies cover flight delays, stolen passports, trip cancellations, and more.

When you are aware, you are more conscious and can have productive conversations relatively quickly. It aids in determining if something goes wrong. Engage in discussions regarding fraud prevention. It could involve your peers, coworkers, family members, etc. Prevention of fraud is crucial for society as a whole.

Frauds have affected the general public and the travel insurance industry. Since the beginning of the commercial insurance industry, insurance fraud has existed. It comes in various forms and can arise in any insurance domain. Especially if it is a soft or hard insurance fraud is conceivable.

The Distinction Between Soft and Hard Fraud

Soft frauds are more prevalent and include policyholders exaggerating their legitimate claims. Occasionally, it is also known as opportunistic fraud. However, if someone intentionally causes a loss, such as by setting fire to property or stealing a vehicle, this is covered by the insurance policy. This is known as “hard fraud.”

As a result of COVID-19, insurance fraud has increased. Protecting yourself from the market’s available fake insurance policies has become essential.

Learn Preventive Measures to Avoid Insurance Fraud

Most Indian insurance companies have a call-back system to determine whether the customer has understood the policy’s terms and benefits. Let us examine the subsequent preventive measures:

  • Purchase the insurance policy from a registered insurance provider or an authorised agent.
  • The policyholder must read and reread the terms and conditions before signing.
  • When you receive the policy bond, verify that the proposed terms meet your requirements.

How to Determine Whether or Not an Insurance Policy Is Fake?

To assist you in determining whether an insurance policy is genuine or not, the following guidelines are provided:

  • Purchase Coverage from Licensed Insurers: Whether you intend to purchase travel insurance, auto insurance or medical insurance, the transaction will be conducted offline or online. If you buy offline, ensure that the agent has a valid licence. Locate the ID card and photograph it with your mobile device. If purchasing a travel insurance international policy online, verify the website’s credentials.
    If necessary, read customer testimonials and choose a travel insurance company with a high claim settlement and solvency ratio.

  • Payment of Premium Received: The insurance premium should be paid online. Or by demand draught or check made payable to the insurance company. Ensure that you keep the receipts for premium payments for future reference. Investigate the possibility of obtaining a copy of the proposal form for later review.

IRDAI has mandated that all auto insurance policies issued on or after December 1, 2015, must include a QR code. So, when purchasing auto insurance, scan the Quick Response code to verify the policy’s authenticity. With a QR code in place, it is simple to access additional policy-related information. Contact the insurance company’s customer service if you have a problem or question. #

  • Sign a Form Only After Reading It: Never sign a blank document, whether purchasing insurance or filing a claim. Only sign a copy after reading it first. Personally complete the form and provide accurate information. It is good to remain #Bimasavdhaan.

Let us avoid becoming victims of insurance fraud. If you are unaware of something, you should attempt to gather information, be it for your travel insurance coverage or health insurance coverage. Perpetrators will always find a way to subvert the system.

Take your time, remain vigilant, and be wary of insurance fraud. Do not respond to any bogus calls claiming to be from a government agency. If you discover anything suspicious, contact the local police station. Additionally, contact the insurance company.

 

 

# Visit the official website of IRDAI for further details.

 

‘Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.‘

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