In the age of digitalization, scams and frauds have been common issues, be it small-scale email fraud or large-scale bank scams. Until and unless you remain aware and vigilant, you can be scammed in numerous ways. The insurance industry does suffer the same problem quite often. And issuing a fake bike insurance policy has been in vogue for a long time, which can put you in immense trouble. To know more about this fraudulent two wheeler policy and the ways to get rid of it, go through the following mentions carefully.
What Is a Fake Bike Insurance Policy?
When an insurer provides you with a bike insurance policy, he offers you comprehensive protection for your dream two wheeler and ensures that you should avail of all the benefits and facilities that come with the policy. But, in the case of fake motor insurance, you are issued a counterfeit bike insurance policy. Since it is fake, it does not have any validity nor hold the insurer’s promise. Therefore, you invested your hard-earned money in a fake policy that can offer you nothing in return but a fake, invalid document.
Not only in the case of online policies, but an offline bike policy can also be fake as well, especially when there is an involvement of a third party or middleman. This often happens when a middleman who claims to have a dealership with the insurer offers a bike policy at a lower premium rate, and people often go for it because of the pocket-friendly expenses, but unfortunately, a few months later, you find out that the salesman and/or the seller are scamming people by selling counterfeit vehicle insurance policies.
In the case of online policies, it is very simple and easy to buy. Similarly, it is very easy to get scammed as well. For instance, you are in haste to purchase or renew your existing bike policy and see an exciting offer, such as a discount offer going on premiums. You click on that, put the details, and the amount is debited from your account. But when the ultimate time comes to show the policy to the concerned authority, you come to know that your document is a fake one. In fact, the entire policy that you purchased or renewed is a fake one. Yes, you are scammed here.
Consequences of Buying a Fake Bike Insurance Policy?
If you unfortunately and unknowingly buy a fake two wheeler insurance policy, you may have to go through the following consequences.
- Financial loss – It is very clear that a fake bike insurance policy will not give you any benefits and facilities a legal one can provide. Therefore, if you invest your money after a fake policy, it is certainly your monetary loss.
- Bike in danger – If you have a fake policy, your bike is without any protection, which means that every time you go out on the roads with your two wheeler it is exposed to road risks.
- Legal obligations – According to the Indian Vehicles Act, if you are a bike owner, you have to have a third party liability insurance policy. But since you have a fake policy, you are covered. Therefore, unknowingly you are disobeying Indian law.
How Can You Avoid Buying a Fraudulent Two Wheeler Insurance Policy?
Now comes the most important aspect of the article how you can identify fake policies and save yourself from getting scammed. Here are some valuable tips for you.
Check the insurer’s background:
When you are ready to buy a bike insurance policy, you first need to select the insurer that fits your requirements. In this stage, you must check the background of the company. Even if you have the slightest doubt, check their website or directly call the company. You can also check the authenticity of the insurer from the website of IRDAI. If the insurer’s name is not on IRDAI’s website, it is definitely fake. You can also use social media to have a company background check.
Make use of the OR code:
IRDAI has made it mandatory for all insurance service providers to have a QR code on all policies. These QR codes help to verify the authenticity of insurance policies issued, which can easily be scanned through an app on your phone. As soon as you receive your policy, it is advisable to scan the QR code. In this way, you can save yourself from getting a fake policy.
No disclosure of details:
If you are buying a policy through a third party, do not disclose your details, such as card number, bank account details, etc., before checking it multiple times. If the middleman asks for the details beforehand, it is a clear no. Sometimes, they even disguise themselves as insurance providers or a company’s customer executives. Be alert whenever you get this type of call, as this has a high chance of scamming you.
Verify before purchasing:
Most insurance providers share a unique verification link via email, it is considered to be electronic evidence. This process helps to verify both the buyer as well as the seller. If you are buying your policy from a third party portal, verify the policy by contacting the insurance provider. Further, check if your insurance policy contains the registration number of your bike in it.
Prefer online purchase:
If you purchase a bike insurance policy online, there will be no possibility of the involvement of a middleman. Always prefer the company’s official website to buy a policy, rather than a third party operator. This makes the process transparent and straightforward. All online aggregators are regulated by IRDAI, which means all policies issued will be genuine. And also, you will get the policy document instantly.
Select the payment method carefully:
The most reliable online payment method is via debit or credit card. Net banking is also safe. Other UPI methods, such as Google Pay, BHIM, Paytm, etc. are also verified and genuine. If you are making a bank transfer, make sure to double-check the account details. If you are paying through cheques, always write a bearer cheque in the name of the insurer.
Avoid paying in cash:
Nowadays, cash payments are open to higher risks. Remember, no insurance agent will ask you for cash payments. Before cash payments or issuing a cheque, call the insurer and check whether the details written on your policy are genuine or not. This will ensure that you are not issuing the cheque to a fake seller or middleman. Even if the insurer is representing a private firm, the details on the cheque should be for the insurance company only, not for that firm.
Fill up the form yourself:
If you are planning to buy the bike policy offline, make sure that you fill up the form by yourself only. In this way, you can avoid putting wrong information to avoid insurance fraud. Read your policy wordings very carefully, and understand the inclusions, exclusions, and terms and conditions. Notice if you are getting all the benefits your insurance agent promised you. Do not sign the policy document unless and until you understand all the terms related to it.
Save the receipts:
Save the policy document as soon as you get it. Do not forget to store the transaction details or receipts as well. Maintain a record of all the transaction details so that you can produce them whenever necessary. All insurance companies provide a separate receipt acknowledging successful payment. If you are buying online, you will receive an invoice with your details on your registered email ID and/or mobile number. Save it carefully for future reference.
Use the Parivahan site:
You can check your vehicle details along with insurance details on the Parivahan website. You just need to visit the official website and enter your vehicle number. All the details related to your vehicle will be fetched from the government’s database and displayed. You can see the validity of your policy there too, which can ensure the validity of your bike insurance policy.
If you find out about the fake insurer, report to the policy as soon as possible. It might be possible that the person may claim on your behalf without your knowledge. If you lose your policy document, inform the concerned authority in that case also. Do not delay in such cases.
If you can take proper measures using a few of the above methods, there will be no probability of getting scammed. Remember, do not rely on anyone in case of financial transactions, no matter who the person is and how close you are to that person. It might be possible that that person is not even aware of the fraud. So, whenever you are planning to buy a two wheeler insurance policy, check multiple times to find out the authenticity of the insurer. In fact, you can also take help from a legal advisor.