Tips To Stay Away From Car Insurance Frauds

author image Tuesday 12 May 2015, 12:13 PM Car-Finance

Car insurance claims and deceptions have been walking hand-in-hand since the beginning of this commercial enterprise.  Range of frauds varies from deliberate claims, fake policies, rogue agents, to hidden clauses. According to a survey, car insurance frauds in India cost losses worth Rs.30, 000 crores to car insurance companies each year. Around 90% of these cons are result of exaggerated and deliberate claims. Remaining 10% cases come from staged accidents under which innocent victims like truck drivers, private motorists, etc. are painted as culprits. Several cases have been registered where people made claims for car theft while the vehicle was hidden by them. Even the cases where claims aren’t filed, but subject lies on insurance application are rated as deceptions by car insurance companies. But this is only one side of the story; common people also become victim of fraud insurance policies and fake agents. Therefore, a regime of precautions is applicable to both sides. Following bunch of tips is a selection of expert recommendations that can help in keeping trickeries and shams at bay and minimize losses for both sides.

Tips to stay away from car insurance frauds
Tips to stay away from car insurance frauds
  • Direct Purchase: The best way to remain safe from any and all kind of car insurance frauds is to purchase policies directly from insurance firm and not through other means.

  • Authorized Agents Only: If an agent contacts you for the same, ensure he is an authorized agent before proceeding any further.

  • Stay In Touch With Insurer – The best way to remain safe is to contact your insuring company. Keep in touch with customer care department of your insurance company through toll-free numbers given in policy handed to you. If the toll-free number is inactive, visit its nearest branch to confirm.

  • Always Ask For Receipts – Whenever you pay your premium, always insist for a receipt. A few auto insurance companies mention the payment details over the policy while other provide with receipts when asked for. Ensure you get one every time.

  • Check Deductibles, IDV & NCBs – As soon as you receive the policy, track down deductibles, NCB (No Claim Bonus) and IDV (Insured Declared Value) to ensure originality of policy.

  • Significance Of FIR – Always check for police report for minor and major accidents. If the subject is trying to make a deliberate claim he/she will refrain from filing a report.

  • Keep Camera – Always keep a camera in your glove box. A picture speaks a thousand words, take pictures of accident scene to prove your side of the opposing party tries any trick later on. 

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