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Non Life Insurance - How to avoid insurance frauds?

IRDAI, the insurance regulator has cautioned insurance buyers to be wary of fake insurance sellers in its recent notice. The insurance regulator has noticed that some unscrupulous entities are selling health insurance policies by offering discounts on policies and diagnostic tests. "It has come to the notice of the Authority that some unauthorized entities are professing to be selling health plans by offering discounts on medical treatments or diagnostic tests," said the IRDAI in a notice issued to the public. Here’s a guide to save yourself from getting tricked by such a fake insurance seller.

Buy only from registered insurance companies

You must buy insurance only from IRDAI registered insurance companies. The list of insurance companies recognized by IRDAI may be seen on its website. In case of doubt, the customers may contact the insurance company to ascertain the genuineness of the insurance plan and of the selling person. "Individuals who avail such services from unauthorized persons or entities shall be doing so at their own risk," says IRDAI.

Signing blank insurance application forms is a common practice but this practice allows a fake insurance seller or a legit insurance agent to buy a different insurance product using the form. You should fill in the application form yourself to avoid being cheated.

Premium payment receipt

You should try to make online payment directly to the insurance company via its website, or through an account payee cheque. But in case you are paying through cash, you must pay it to the insurance company branch office directly. In case you are paying to an insurance agent, you must verify the agent’s details by calling the insurance company and verifying is ID card details.

There is no free lunch

Some extra time spent before buying an insurance product is worth the effort as it can prevent any fraud happening.

Source : Live Mint back