Life insurance fraud is on the rise these days, even as the demand for insurance increases. To protect yourself from being deceived, it is important to remember some crucial facts.
fake phone calls
Fraudsters often contact potential victims by phone pretending to be insurance agents or IRDAI (Insurance Regulatory and Development Authority of India) staff. They may promise bonuses or refunds and ask people to pay a “processing fee”. Never trust these callers.
When an insurance agent contacts you, ask for proof of identity and confirm that he or she is an authorized representative of the insurance company.
Identify a suitable plan
Before making a purchase, identify the insurance plan that meets your needs. Also, buy from the company’s website, from a licensed aggregator or licensed agent.
If you receive the application form from the agent, complete it yourself. If the agent fills out the form for you, make sure all the details are correct before you sign it.
Avoid cash payment
Most insurance companies prefer digital payments to avoid fraud by unauthorized agents. So don’t pay the premium in cash. If you issue a check, designate the insurance company as the payee.
No personal data
Never share personal data. If requested, confirm the identity of the people requesting them.
Never reveal OTP
A one-time password (OTP) is your signature in the digital age. It confirms that you accept the terms and conditions of the insurance policy. No wonder, this should never be revealed to anyone.
The best defense against insurance fraud is to always be vigilant, aware and informed of new fraudsters’ methods. You should also find out about the latest security measures against embezzlement. Also, in the event of a scam, you must notify the authorities.
(The author is Head, Legal and Complaints, Bajaj Allianz Life)