All About Car Insurance Frauds In India

There is no doubt that the car insurance sector is flourishing at a rapid speed. However, with so many people and money involved in this sector, the possibility of fraud becomes quite frequent. Every year, people are losing out on lakhs of money due to these car insurance frauds where many individuals are tricked and asked to pay a certain amount of money or are given fake insurance plans. Such frauds can occur in several other ways as well, so it is very important for both the policyholder and insurance company to be aware of such scams. Read on to learn more about car insurance fraud in India.

What is a Car Insurance Frauds?

Car insurance fraud is typically defined as any type of fraud or spam that occurs under vehicle insurance.

These frauds can be easily committed by agents or other intermediaries involved in the process. The frauds can be done during the purchase of the policy, sale of the policy or even by false claims.

Most Common Car Insurance Frauds In India

Some of the common cases that are typically referred to as car insurance fraud are listed below:

• Lying To The Insurer: There are times when an individual lies to the insurer about any accident in order to just get money out of the claims raised. Many individuals even exaggerate the extent of damage that occurs to their vehicle and thus try to deceive the insurance provider. As a result of such scams, insurance companies end up paying more money to the insurer than is required for settling the damages. 
• Pre-planned Accidents: This may be a surprise to you but many times individuals often pre-plan an accident to take advantage of the claim amount received. A pre-planned accident helps scammers raise a fake claim and get maximum money from the insurer.
• Fake Insurance Claims: Just like frauds against insurance companies, there are often instances where the policyholder is tricked. This happens when the insurance company sells a fake insurance plan, thus resulting in the policyholder being trapped. 

What Are the Ways To Avoid Car Insurance Frauds?

There are different ways in which you can ensure that the instances of car insurance fraud are reduced:

• Buy an Insurance Plan From an Authorized Insurance Company: Whenever you plan to buy a car insurance policy, ensure that you do so from an authorized insurer. You must purchase a car insurance plan with companies that are registered with IRDAI.
• Verify Your Car Insurance Plan: Before finally buying a car insurance plan, you must always verify the plan details on the official website of the insurance company. For verification, you can even read customer reviews about that particular car insurance plan.
• Ask For The Receipt: The receipt is a valid document that confirms that you have paid the premium amount to the insurer. You can keep the receipt as proof and produce it in case you are tricked.
• Avoid Buying From Agents: While buying a car insurance plan, do not involve any intermediaries or agents as sometimes agents can trick you and convince you to pay an extra amount.
• Never Sign A Blank Cheque or Document: In case anyone asks you to sign a blank cheque or document while buying a car insurance plan, then never do the same. Your signature can be used by agents to trick you, so never sign on any document blindly.

Conclusion

In order to stay away from such fraud, make sure to follow the above-mentioned tips. If you are tricked, then immediately report it to the police and provide all the valid evidence. Also, make sure to read all the terms and conditions of the car insurance plan before making any purchase.

Also read:

When Does Car Insurance Get Cheaper For Young Drivers?

How Much Does A Claim Affect Car Insurance?

Disclaimer: This article is issued in the general public interest and is meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.