Motor Vehicles Act 2019: Renewing your motor insurance policy? First, make sure it is not fake

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Published: September 9, 2019 5:08:13 PM

Under the new provisions, the penalty for driving an uninsured vehicle has been revised. With the implementation of the amended Motor Vehicle Act, people are now voluntarily coming in and renewing their policies on our website.

motor insurance, online motor insurance sales, traffic challan, new motor vehicle act, penalty on traffic rule violation, motor insurance,While buying an insurance policy, try to either buy it directly from the insurance company or from a reliable aggregator.

After the implementation of the new Motor Vehicles Act 2019, violators of traffic rules are being charged with hefty penalties. Because of which in the last few days, according to motor insurers, renewal of motor insurance policies has seen a surge. People have started to take the Motor Vehicles Act amendments seriously and are complying with the same.

Animesh Das, Head of Product Strategy – ACKO General Insurance, says, “With the implementation of the amended Motor Vehicle Act, people are now voluntarily coming in and renewing their policies on our website. We have seen a 600 per cent rise in issuance of two-wheeler insurance policies in the past few days.”

Under the new provisions, the penalty for driving an uninsured vehicle has been revised. Earlier, for driving an uninsured vehicle a penalty of Rs 1000 and/or punishment up to three months was levied. However, with the new regulations, violators will be charged a fine ranging between Rs 2000 to Rs 4000 and/or imprisonment up to 3 months. Hence, experts believe, the number of new insurance policies and renewal of old policies will increase significantly.

However, while opting for a policy beware of fake policies. It might also be the case that the auto insurance policy you have bought recently may be fake. Wherein, any claims arising from it won’t be honored. Not only in India but all around the world fraud cases in the insurance industry have been rising and have become a cause of concern. Around 1-2 per cent of the total vehicle insurance policies, according to industry estimates, are fake in India. Hence, while buying an insurance policy, try to either buy it directly from the insurance company or from a reliable aggregator.

Here is how to find out how to spot a fake policy and avoid buying it:

  • Buy it through credible resources. Just to get the policy at a cheaper price or bag in some discount while buying the policy, don’t pick up a policy from anywhere. As just by looking at the policy you most probably will not be able to tell the genuineness of the policy. To avoid this, experts suggest policyholders should try to get a policy from a renowned and credible resource.
  • The way you make the payment also plays a big role, hence try to make the payment either through online or through a cheque. You can make the payment through a cheque if you are buying a policy offline. This way you will know the credibility of the company as the cheque has to be made in favor of the insurance company. Mainly, avoid paying in cash, which will cut down the risk of getting hold of a fake insurance policy.
  • Using the verification link, mentioned on the website of the insured, you can also verify your policy. Visit the insurer’s website and use the verification link to validate your motor insurance policy. You can also get in touch with the customer care to verify the details of the policy.
  • Before buying the policy, make sure that the policy is from one of the accepted general insurance companies in India. You can check the policy’s existence on the IRDAI website. On the insurance regulator’s website, you can find out about all the licensed entities along with their details. Also, if it’s not much of a difference, try to buy the policy from the insurer directly.
  • Fraudsters and scamsters copy even the minute details of the insurance company. Hence, it is not easy to check the genuineness of the policy. To make sure, tech-savvy people can use the QR Code, to verify their policy. Generally, there is a printed QR code on the vehicle insurance policy. Scanning this could help you verify the authenticity of the insurance policy. Using a smartphone and a QR code reading app, you can scan this code. If it authenticates, it should lead you to the details of your policy.

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