It is a matter of concern that there are so many insurance scams in India. Victims of these frauds can lose a large amount of money or experience emotional stress, which can have really bad effects. Insurance scams are increasing in India for a variety of reasons. One explanation is that many people in the nation are unfamiliar with insurance products and how they operate. They are more likely to fall victim to fraud because of this.
The Indian government hasn’t done enough to lower insurance fraud, which is another factor. Because of this, scammers now feel more confident operating. There is a critical issue that has to be addressed regarding the rise of insurance scams. The government must take action to punish fraudsters and inform the public about the dangers of insurance scams. Additionally, customers need to be more careful about the websites they visit and the information they share with individuals.
Common Insurance Scams
1. Phishing and Identity Theft
Scammers connect with people for their personal information like their Aadhaar number, bank account information, or credit card information by using scam websites, emails, or phone calls. They could then sell it to third parties or use it to commit identity theft.
2. Premium Fraud
Untrustworthy insurance brokers may take consumers’ cash payments while failing to enroll them in the policy. As a result, individuals may believe they are covered by insurance when in fact they do not have a legitimate policy when they need it.
3. False Insurance Policies
Fraudsters create false insurance policies that mimic real ones but provide no real protection. They may use inexpensive rates and deceptive promises to entice innocent people, only to vanish when the victim files a claim.
Tips To Stay Safe From Insurance Scams
1. Don’t Exchange Documents Or Private Information
Don’t give your documents to anyone you don’t know or trust about your policy. An honest insurance provider won’t ever request your original paperwork or have you sign blank cheques.
2. Verify The QR Code
The majority of insurance policies feature QR codes. These codes can be used to confirm the legitimacy of your policy. Simply use a QR code reader app on your phone to scan the code.
3. Study And Comprehend Policy Paperwork
Carefully study the policy documents before purchasing insurance. For a better understanding of the coverage provided, pay close attention to the terms, restrictions, and exclusions.
4. Use Encrypted Communication Channels
Never divulge private information via email or phone calls, such as your Aadhaar number, bank account information, or credit card number. Use the secure communication channels the insurance company has provided to thwart phishing attacks.
