How to Check for a Counterfeit Motor Insurance Policy During Renewal?

A motor insurance policy is mandatory for all vehicles registered in the country. Not only is it a regulatory requirement, but also offers coverage from damages and accidents. The type of policy determines what is covered within it.

The new Motor Vehicles Act of 2019 was rolled out on 1st September 2019. With this new amended act, there has been a steep rise in the fines for all offences including compliance for motor insurance policies. The erstwhile penalty of ₹1000 and/or imprisonment up to three months has now been increased. It now ranges between ₹2000 to ₹4000 and/or imprisonment for up to three months based on the repeated offence. This move by the regulator, IRDAI has seen more and more people opt for their vehicle insurance and ensure its timely renewal.

However, with the rise in compliance requirements by the regulator, there has been a rise in the instances of fake car or bike insurance policies being sold. Scammers are on a rise tricking unsuspecting buyers to purchase such counterfeit plans. The claims raised against these counterfeit policies are not honoured since they do not hold any legal ground. Financial Express reports of about one or two percent of the total policies being sold to be fake. With such instances of bogus plans available, it is essential you do not fall prey to scammers and buy genuine insurance plans. Here are some of the ways to spot one and avoid walking into the trap:

Purchase through credible sources: The most important point is to purchase a policy only from an authentic source. This can be an agent or even directly from an insurance company. It is possible to directly buy private and commercial vehicle insurance online from an insurance company. Also, you can check the regulator’s website where a list of authorised insurance companies is mentioned.

Opting for a trusted payment channel: Payment mode is essential to check when you are renewing your policy. Dubious policies generally require you to pay by cash thereby increasing the risk of fraud. Instead opt for an insurer that offers the facility of online bank transfers which are a reliable mode of payments. Moreover, for online payment of your policy, the renewal happens instantaneously thereby having no lag in processing the renewal application.


Verification of your policy: Insurance policies can be verified using the verification facility made available by insurance companies. Here you can enter policy details on the insurer’s website that help to affirm the policy terms.


Purchase from an authorised insurance company: Before finalising your policy for renewal, make sure the insurance company is from one of the authorised insurance companies. You can verify the registration details of the insurer, both from its website as well as IRDAI’s website.


Verify using the QR code: Scammers often copy minute details of an insurance policy, including the logo and identification mark. One thing that is extremely difficult to imitate is the QR code and thus can be used to verify the policy. This code is printed either on the top or bottom of the policy which embeds a URL within itself helping to authenticate the policy. Tech-savvy people can take advantage of this.

With above-mentioned points your can ensure a seamless renewal of your motor insurance coverage without falling prey to scammers and counterfeit policies. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

Comments are closed.