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Crash for Cash: 6 Ways to Stay Away from Car Insurance Fraud

  • Highlights

  • Car insurance fraud is a widespread scam that can affect anyone if he/she is not cautious

  • While you might know about accident scams that affect the insuring company, many scams affecting the customer such as fraudulent insurance agents extorting money or personal information are also prevalent

The automobile insurance market is a sophisticated web of brokers and insurers that involves a significant amount of money. And there's always the risk of fraud when money moves through multiple networks. Accident scams, insurer tactics, and referral fraud are some of the usual ways by which consumers can become victims of car insurance fraud. As a result, it's critical to understand how to protect oneself when purchasing insurance.

Types of Car Insurance Frauds

Insurance fraud can occur due to unethical insurance companies or dishonest agents or mediators in the sector. It can also happen to the provider as well. Frauds might range from slightly fabricating a claim and falsifying injuries to purposefully causing an accident or causing damage to a vehicle. The most common types of car insurance fraud in India are listed below.

  • Organised Fraud
    To escape detection, fraudsters sometimes collaborate to arrange incidents and then submit an exaggerated injury or damage claims to several insurers.

  • Fraud against Policyholders
    While many people believe that insurance firms are the ones who are the victims of fraud, policyholders are also victims. It could be a result of phoney insurance policies or agents. This is what we will focus on in our blog.

Car Insurance Fraud: How to Avoid It?

Car Insurance Fraud

Here are a few pointers to assist you in avoiding dealing with a phoney insurance business or agent while purchasing car insurance coverage.

  1. Buy Directly from the Company
    Insurance firms operate on a direct-to-customer strategy, with no agents or mediators. As there are no agents, you may obtain auto insurance straight from the firms, avoiding any potential fraud.

  2. Never Share Personal Documents with Unverified Sources/Random Insurance Agents
    In most cases of car insurance fraud, scammers will try to contact you via mail or phone, posing as insurance agents. Remember, car insurance doesn’t require agents, so if you are contacted by such scammers, never share any personal documents or transfer funds to them.

  3. Obtain the Insurance Premium Receipt
    Make sure you get a receipt for the premium every time you pay it. If you discover that the policy is a forgery, you can use the receipt as evidence in court to sue the fraudulent insurer.

  4. Read the Terms and Conditions
    You can better understand the policy’s features and benefits by reading the terms and conditions. Consequently, you must pay close attention to the terms and conditions before purchasing the plan. If you discover an error, correct it right away to avoid having your claims denied.

  5. Consider Paying with a Cheque, Online, or a Credit Card
    You can pay the premium directly to the insurance provider, not an agent or a middleman whether you pay by check, credit card, or net banking. You may be sure that paying with these methods will come in handy.

  6. Never Sign Blank Cheques or Forms
    You should either fill out the application form yourself or purchase the policy directly from an insurer. To avoid fraud, never sign a blank paper/form or a cheque.

car insurance fraud

By looking for potential indicators and learning how to respond, you can avoid being victims of car insurance fraud. Don't be a victim of vehicle insurance scams; be wise and do your homework!

Purchase insurance from only reputable companies such as Bajaj Allianz. Remember, Bajaj agents do not contact you voluntarily for insurance-related documents or money. In such a case, contact us immediately or report the number or email ID to the cyber-crime cell.

Savdhaan Rahein. Safe Rahein.

In case you receive any suspicious call, message, or email, immediately report it to us or the cyber-crime cell.

BAGIC Whistleblower Email: Fraud.Info@bajajallianz.co.in
BAGIC Whistleblower Hot Line no: 020- 6728 4477
Link to check BAGIC policy: https://general.bajajallianz.com/MotorInsurance/Policy_Tracker/SearchResult.do

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