A car insurance policy protects you financially against any damage to your car in case of a mishap. Car insurance is based on the mutual trust between the insurer and the insured. If you make a fraud claim, it would be a breach of trust and can lead to legal hassles. You could also be duped into making a wrongful claim, thus, putting you in trouble. Here are some facts you must be aware of to be able to avoid car insurance fraud.
Insurance fraud
Insurance frauds have been occurring since car insurance plans were introduced. Insurance companies frequently face issues such as demand for higher compensation, replacement or repair costs for expensive car parts, fake claims of car theft, and more. With the higher number of vehicles on road, car insurance in India becomes even more essential, & frauds, more common. To deal with these cases, insurers appoint investigators who look into each claim filed by offline and online 4 wheeler insurance policyholders. Payment is released post the survey and approval by the investigators.
How insurance fraud can affect you
- Insurance fraud rackets
Not only do insurance companies get affected by fraud, but even car owners can be victims of fraud rackets. Some people create false accidents to land you in trouble and get money from your insurer. These fraudsters can do things like staging false accidents to intentionally injuring you and your family while you are driving. It can lead to highly stressful situations for you. The best way to protect yourself is to drive safely and stay alert to avoid fraudsters.
- Fake accidents
Some people with wrongful intentions may suddenly get their car in front of yours and slam the brakes so that you end up hitting their car from behind. Since the car hitting from the back is at fault, you may have a tough time convincing the onlookers and police that it was not your fault. The person who is originally at fault will get away by claiming compensation from your third-party insurance or, worse, blackmail you with threats of legal proceedings to collect some free cash from you on the spot. The third party can also make fake medical claims related to injuries.
How to protect yourself against frauds
- Drive carefully
Maintain a safe distance from other cars, drive at a reasonable speed and stay alert if you feel that a car has been following you for some time. Check if the other car’s driver is trying to get too close to you or trying to set up an accidental collision at a turning or in the same lane as you. Take the help of traffic police or report the matter to the nearest police station to avoid an unwanted incident.
- Collect evidence
If an accident takes place, gather sufficient evidence by taking photos and videos of the damaged third-party car from all possible angles and inside. Take help of witnesses if possible. It may happen that fraudsters will make further damage your car to claim higher compensation from your insurer.
You can get caught in an motor insurance fraud case without any fault of yours. Take help from the police if you suspect anything unusual while driving your car. Be aware, drive safely and stay alert to avoid tricky situations always.