How to protect yourself from insurance fraud

Life insurance-related frauds are becoming rampant these days even as demand for insurance is rising. To protect oneself from getting cheated, it is important to remember some crucial facts.

Fake phone calls

Fraudsters often contact potential victims over phone posing as insurance agents or staff of IRDAI (Insurance Regulatory and Development Authority of India). They may promise bonuses or refunds and ask the people to pay a ‘processing fee.’ Never trust these callers.

Confirm identity

When an insurance agent contacts you, demand proof of identity and confirm that he or she is an authorised representative of the insurance company.

Identify a suitable plan

Before making a purchase, identify the insurance plan which meets your requirements. Moreover, buy from the company website, authorised aggregator or authorised agent.

Check details

In case you receive the application form from the agent, fill it up yourself. If the agent fills the form for you, ensure that all the details are correct before signing on it.

Avoid cash payment

Most insurance firms prefer digital payments to avoid fraud by unauthorised agents. So, do not pay the premium in cash. If you are issuing a cheque, make the insurance company the beneficiary.

No personal details

Never share personal details. If they are asked, confirm the identity of the persons making the request.

Never reveal OTP

A one-time password (OTP) is your signature in the digital age. It confirms that you agree to the terms and conditions of the insurance policy. No wonder, it should never be revealed to anyone.

Awareness

The best defence against insurance fraud is being always alert, aware and updated about the new methods of fraudsters. You also need to learn about the latest security measures against malpractices. Moreover, in the event of being cheated, you should inform the authorities of the matter.

(The author is Head, Legal and Complaints, Bajaj Allianz Life)