Companies alert on fake motor insurance
Companies have become cautious about the rapidly increasing fake insurance policies. Many a times, insurance policies of two-wheeler segment are issued fraudulently to high class vehicles. This makes a big difference between the premium payable to the company and the premium marked in the soft copy.
Method of fraud
In the soft copy of the insurance, the premium, term, coverage of the vehicle are tampered with. This is done through the online portal of the insurance company and intermediaries. At the same time, incidents of fraud are also done in offline mode.
Loss to companies
Companies suffer loss of OD (own damage cover) and TP (third party cover) premium due to fraud. There is a misclassification of risk for companies. Not only this, the wrong data related to the insurance policy also goes into the vehicle portal. Traffic authorities also issue permits, fitness certificates with wrong information.
Instructions to employees
Insurance companies have said that the policy issued should be thoroughly examined. Check policy details through online channel. Action should be taken under IRDAI rules on detection of fraud. At the same time, legal action has also been asked to take against the policyholder who commits fraud.