There is a significant rise in instances of insurance fraud in India. As a smart investor, it is important to know how to protect yourself from frauds. You need to be aware of the frauds and the way fraudsters target unsuspecting customers.
Things to do to ensure the money in your insurance is always secure
You need to do certain things to ensure the security of your money in insurance.
- Read the policy documents thoroughly
Primarily, you need to read the brochure of the life insurance policy carefully and know what is covered in the policy. Understand the benefits and features before you buy a plan.
- Keep the documents in a secure place
You need to keep the policy documents safely and inform your family about the same. You can also store it in an Electronic Insurance Account, which will convert the paper policy to an electronic form.
- Report unauthorized transaction communication
You will only be successful in insurance fraud detection if you report any unauthorized communication immediately. Inform the insurance company the moment you receive such information through an SMS, e-mail, or a letter.
Things to avoid
For insurance fraud prevention, you should refrain from doing the following things:
- Do not provide your original documents to strangers
Never submit your original documents like PAN card, Aadhaar card, and Passport, among others to unknown people.
- Do not issue blank checks
The best way for insurance fraud protection is to avoid issuing blank checks for any transaction. It is recommended that you pay the premium through the company’s website or a standing instruction from the bank.
Beware of fraudulent practices
You need to be aware of requests to hand over the premium in check or cash to any individual who claims to be a representative of the insurance company. You need to take steps to verify the identity of the individual. Ask for an ID card, which identifies him/her as a representative of the insurance company. Also, ask for contact details and double-check with the website to verify the details of the broker. Once you receive the policy documents, you need to validate the signatures on the application form. Beware of spurious calls promising bonuses or rewards on the surrender of the policy.
Steps to take to fight fraud
Now that you know how to prevent insurance fraud, you need to understand the steps to take to fight a fraud. In case of a fraud, you need to contact the insurance company on the toll-free number, through email, or by visiting the nearest branch. You need to make a written complaint and provide details about the individual involved in it, submit physical proof and transaction details of your online life insurance policy.
The insurance company will take the matter forward based on the complaint you make.
Like many other crimes, insurance fraud can also be prevented by following the basic safety principles and keeping your personal information secure.