How to know whether your motor insurance policy is genuine?

Do you know that around 4 lakh individuals from India meet with accidents each month? Statistics like these show why it is crucial to have a motor insurance.

The car insurance premiums comes with an array of benefits for car owners. As per the Indian legal system, having a minimum amount of insurance is compulsory for car owners. The insurance covers lawsuits, vehicle repair bills and damages due to fire or theft. Some insurers also provide additional benefits like cover for the paid driver and no claim bonus in case the claim is not during the period of policy. Even the corporate entities need to buy a good motor insurance policy to protect their drivers and third parties. You can avail these benefits only if you select the insurance from a trusted company.

Why do you need to check the insurer’s genuineness? 

A policy from an insurance company may sound tempting due to extremely low premium rates, but chances are that even the insurer may not be aware of the policy. This is why you need to check the genuineness of the insurer. Imagine you met with an accident, and then you come to know that insurer has put some additional terms when you ask for a claim. Or worst, the company not even exists. To protect yourself from these types of frauds, it becomes crucial to put some efforts while choosing the motor insurance.

You also need to verify the genuineness of insurance agents. Sometimes, a dishonest individual may claim to be an agent of an insurance company. It, therefore, becomes essential to check the credentials of a person before buying a policy from him/her.

A lot of fraudulent cases have also increased due to easy processing of images and low printing costs. Any individual with basic knowledge of image design and processing can create fake policies.

How to check if insurance is genuine or not?

To avoid becoming a victim of fraudulent activities, you need to follow these essential tips.

Contact the insurer

This is the primary requirement to ensure the genuineness of the policy. Usually, the websites of the insurance firms provide a toll-free number to clarify the doubts. You can make a call and verify if they have the particular policy you are about to purchase or not. Sending an email to cross-check the details of the policy is also a good option. Make sure the domain name in the email address is that of the insurer and not that of an email service provider.

You can also go a step further and visit the insurer’s office to validate the details of the scheme.

Take the receipt of the premium

The next important step is to ask for a receipt for the premium paid from your end in cash. If the payment is done via cheque, make sure the details of the cheque, including bank name and account details, are filled correctly on the receipt.

Check the insurance through policy comparison sites

You can get the details of most of the motor insurance policies by visiting the renowned policy comparison sites. An aggregator of policy details constitutes the information from all leading insurers.

Check essential details

Make sure the essential details are correctly mentioned on the policy. These details include No claim bonus, IDV (Insured Declared Value) and the deductibles. This step becomes more important when an individual is offering a policy with the lowest premium. Sometimes, the agents manipulate the values of IDV and NCB to decrease the premiums.

If you discover the NCB or IDV is not mentioned correctly, visit the insurance company to get it corrected. This will avoid the hassles at the later stages.

Signing of the proposal form

After verifying the details on the proposal form, sign it yourself. Do not allow anyone to sign the form on your behalf. The proposal form generally contains information like fuel type of car, engine capacity and previous policy details. It is also a good practice to fill the form yourself. A lot of reputable insurance firms have consolidated the dispatch of policies to prevent the frauds.

QR code

Install a QR code reading app on smartphone to verify the details of the policy. Insurance regulatory and development authority of India (IRDAI) has made it mandatory for car insurance policies to have a QR code. Scanning the code gives the information of the policy instantly. Even the traffic policemen can utilise the QR code in case of an accident or during a verification related to a vehicle.

Read our article “Motor Insurance Companies In India” for understanding more about Motor insurance.

Conclusion

All these tips will ensure that your money is being invested safely, and you can enjoy all the benefits of the claim in an event of accident. If you are purchasing the car insurance policy for the first time for your new car, you can compare the benefits and features of different insurers to receive maximum advantages.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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