Fake motor policies worth Rs 53.6 crore were issued in 2018-19, Anurag Thakur, MoS, Ministry of Finance, said in a reply to a question in Rajya Sabha last week.
The amount related to fake vehicle insurance has more than doubled in just one year. Fake motor policies worth Rs 53.6 crore were issued in 2018-19, Anurag Thakur, MoS, Ministry of Finance, said in a reply to a question in Rajya Sabha last week. The amount related to fake motor policies was at Rs 25.7 crore in the previous year. The minister further informed that the Insurance Regulatory and Development Authority of India (IRDAI) has directly received complaints about the issuance of fake policies by three companies which are not registered as general insurers. However, IRDAI has put up a public notice advising not to buy insurance from these companies and to bring in the notice if any unauthorised transaction is done with these companies, the minister added.
M/s AKPCL General Insurance Company Ltd (2016), M/s Gone General Insurance (2019) and M/s. Marines Technology (2019) are the three companies about which IRDAI received the complaints directly. According to the reply, police complaint has been lodged against M/s AKPCL General Insurance Company Ltd, while lodging of the police complaints against the other two companies are in the process.
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How to avoid buying fake motor policies?
IRDAI has provided guidelines for buying and checking the motor policies.
- Check Unique Identification Number: Policyholders should check the Unique Identification Number (UIN), which is present in all the policies registered with IRDAI.
- Check if the product is approved: IRDAI website puts up the list of approved products and their UINs every year, which is updated if any new product is approved.
- Check on the insurer’s website: The policyholder can also check for the motor policy related products on the insurer’s website.
- Check the insurer’s registration: IRDAI also has a list of the companies which are registered as general insurers. Checking the insurer’s on IRDAI website can prevent from making unauthorised transactions with fake entities.
IRDAI has issued directions in the past that all insurers should place fraud monitoring framework for identification, classification, and monitoring for frauds. However, despite carrying out insurance awareness campaign programmes and launching consumer education website for consumer guidance and protection by the insurance regulator, fake motor policies worth Rs 113 crore have been issued in the last three years.