Apart from tax evasion, insurance fraud is also considered a white-collar crime because it leads to the loss of money in a fraudulent manner. Many people are usually conned by fake insurance agents all over the country because they are unfamiliar with the tactics they use. This piece discusses various ways of avoiding insurance fraud.

1) Ask for Proof from the Insurance Agent

A directive was issued by the IRDA, which requires insurance agencies to ensure their agents undergo training before going to the field to look for clients. The directive also requires all agents to have identification proof. An insurance agent can approach you; ask them for their ID, and ensure you use the customer service number to confirm their identity. This is a safety precaution that can save you from being tricked by fraudsters.

2) Purchase Insurance Policies from Online Websites of Genuine Insurance Firms

If you would like to avoid the risk of being conned by fraudsters pretending to be agents, you can use the online platforms to buy your policies. Many insurance frauds examples are the ones that have the physical presence of the fake agents.

Buying a policy online will save you the cost of a middleman and guarantee the procedure's safety. It is critical to follow the payment steps and never reveal your credit card information and transaction messages to anyone. Many online websites have a safe SSL-enabled disbursement gateway to ensure you pay the required firm.

3) Don’t Pay for Insurance Cover Using Cash

Genuine insurance agents never ask for cash. Confirm if the insurance setup exists, even if you've decided to pay using a cheque. Call their customer care to confirm the account details you've been given. It will save you from being lured into writing a cheque to an account appearing similar to the original, but it's fake. Fraudsters take advantage of private firms; they will tell you that a private firm's account is personal. It is untrue. All insurance firms have registered accounts, so ensure you write your cheque to the right account.

4) Report the Loss of a Policy Document Early

If fraudsters access your policy documents, they can fix an insurance claim on your name. This is why you should maintain the safety of the policy documents. If you notify the insurance company about the loss or misplacement of a policy document, you will keep fraudsters away. The insurance laws recommend that you place an advert in the newspaper, give an indemnity bond to the insurer or lodge an FIR once your documents go missing.

5) Write Your Policy Document by Yourself

If you prefer to purchase your insurance policy offline, make sure you write the policy documents. If an agent fills the document, check the terms and conditions, exclusions and inclusions, withheld information, misinterpreted facts, and spelling errors. Agents habitually take advantage of your absence to fill in conflicting information so that the information on the policy document will say otherwise when you're to be compensated. Therefore, you will not be compensated.

Final Word

Fraudsters always take advantage of your documents to fix an insurance fraud. Only present your documents as proof and don't leave them with the agents. Be vigilant when taking a policy online; online scammers use the information you log in with on your policy. Ensure you log out of all devices after completing your transactions.