How To Avoid Getting A Fake Insurance Policy

By | September 28, 2016


We all take different insurance policies to protect our cars, health, or life and for other reasons as well. In fact, it’s always advisable to have some form of insurance coverage so that we don’t end up paying a huge amount of money in case of any emergency or accident. Insurance policies also help us save on taxes.

But we sometimes come across stories of insurance fraud and people being duped when it comes to their insurance claim amounts. What steps can you take to make sure that you’re never in a situation like this?

Well, here are a few things you can do.

  • Buy directly from insurance company

It’s always safe and advisable to buy your insurance policy from a licensed authority instead of buying it from just any agent. Nowadays, most policies can be bought online, so you can always compare different policies and check the premium amount and other details before buying a policy. Also, you can do research online to understand the insurance company better and make an informed decision about buying the policy.

  • Online payment is safer

It’s always safe to make your insurance premium payment online, instead of issuing a cheque or paying cash. That’s because an online payment ensures that you will have a copy of the payment made to the insurance company. And in the case of a dispute, you can present  your bank statement along with the insurance documents.

Also, never try to hand over the premium amount, in cash, to an agent, as you will never know if they are actually submitting the amount towards your policy premium. Don’t give in to insurance agents who insist that you should hand over cash for premium payments.

  • Check the licence of the insurance agent

In case you plan to buy an insurance policy from an agent, always double check their licence and identification documents. This will help you avoid falling a prey to a fraudulent agent. Agents who are genuinely registered with any of the insurance companies will have a particular agent ID. This is what you need to verify before buying the insurance policy.

  • Check the company seal

Always remember to check the company seal on the insurance documents. Do not buy an insurance policy if the company’s seal looks dubious or any of the insurance clauses seem questionable. Double check and understand all the policy clauses carefully before signing any of the insurance documents.

  • Customer care always there

In case of any questions or disputes regarding your policy at any point in time, always reach out to the customer care of the insurance company. Keep the phone number and e-mail address of the insurance company handy so that you can double check all the information with them.

Remember it’s always good to be cautious and alert when it comes to your money. It doesn’t matter how convincing an insurance agent is. You will lose your money and be stranded in an emergency if your insurance policy isn’t genuine.

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