Insurance frauds have been prevalent over the years and fact is that it can’t be completely eliminated. Hence, it becomes imperative for you to verify that motor insurance policy that you have purchased is genuine or not. Or otherwise if you come to know about it at the time of claim or a mishap then it would be very disheartening. Some might realize it after the theft of the vehicle that they had been paying premium for over a number of years expecting to benefit from it.
However, you can reduce such incidences with little caution. Some of the ways to know whether your motor insurance policy is genuine or not are:-
Contact your insurer: This is the easiest and simplest way to check whether the policy handed to you is correct or not. You can contact the insurer by sending an email to the customer care or calling their toll free numbers, which would be mentioned on the policy document. In case if the toll free number is not available, you can visit the nearest branch office.
Ask for a receipt: Always insist on premium payment receipt. Some companies mention the same on the policy document (under premium payment details) but they also provide a separate premium payment receipt, if asked for. It is always advisable to ask for premium payment receipt in case you pay by cash. Verify whether the details mentioned on the receipt are correct, such as details of cheque provided by you (cheque No., date, amount, payee bank). Do remember the validity of the policy will depend on the validity and clearance of the cheque.
Check IDV, NCB and deductibles: It is important that on receiving the policy you must check the Insured Declared Value (IDV), No Claim Bonus (NCB) and the deductibles (like voluntary excess, compulsory deductible and additional compulsory deductibles); to confirm that the policy received is genuine.
Although, it may appear as minor checks at the time of receiving the policies, this can create chaos at the time of claim. For example, your current policy might have been issued on the basis of wrong declaration of a claims made on the previous policy. This may appear economical at the time of taking the policy, but can prove costlier when your existing insurer discover it at the time of claim. Sometimes, your agent could also lure you in order to give a best economic deal. However, it is your duty to correctly reveal the same while providing details in proposal form. In case the NCB is mentioned wrong, immediately inform it to your insurance company to have a hassle free claim settlement later on.
Sign proposal form on your own: Never allow anyone else to sign the proposal form/cover note on your behalf. Always insist for self signature. This is required as you know what you want and cross-check features of your vehicle. For example, if your vehicle is fitted with CNG that the agent is not aware of and he mentions that the car runs on petrol/diesel, then you would have a problem during a claim. Similarly, you know better whether your vehicle registered under private/commercial than the agent through whom you get this product.
Most private insurance companies have centralized the dispatch of policies, in order to check fraudulent practices. They are also coming up with bar code printing on the face of policy to verify against the proposal form.
