Under the Motor Vehicles Act of 1988, it is a legal requirement to insure two-wheelers with at least third-party bike insurance. This provides riders financial protection against accident losses, theft or damage to their vehicles. However, while purchasing such motorcycle insurance covers online or offline, cases of counterfeit policies sold by scammers are increasing alarmingly.
This leaves bike owners inadequately insured and highly vulnerable to potentially massive out-of-pocket expenses from contingencies. This article explains what constitutes fake two-wheeler insurance plans, illustrates real-life examples of such scams, suggests preventive due-diligence strategies for buyers and highlights the widespread implications of unknowingly buying counterfeit motorcycle insurance.
Ways To Buy Bike Insurance
While purchasing bike insurance covers, buyers need to exercise caution regarding channels used to avoid fake two-wheeler insurance:
Via Agents
The most common and easiest way to buy motorcycle insurance, traditionally, has been through authorised agents representing genuine insurance providers. This allows in-person verification of documents and reduces the risks of getting fooled by counterfeit papers if adequate due diligence is not done.
When buying via agents, insist on seeing proper identification documents such as licence copies, ID cards, etc., that validate their credentials and authority to sell valid bike insurance plans on the provider’s behalf before making payments.
Directly Through Insurance Firms
Websites of insurance providers, like TATA AIG, are safer options for purchasing covers online if the domain authenticity is thoroughly verified beforehand. Refer to parameters like HTTPS security certifications, about us page details, contact info, etc., to vet the site’s legitimacy.
Via Online Insurance Aggregators
With advancements in insurance technology, purchasing bike covers online via digital web aggregators that allow comparative quotes from multiple insurers on a common platform offers great convenience to buyers.
What is Fake Bike Insurance?
Fake two-wheeler insurance refers to invalid documents resembling authentic bike coverage. You pay premiums but receive no actual policy benefits in return. All promises of covering your losses in case of bike-related contingencies are null and void. You only realise the fraud when your claims are rejected because you do not have a valid policy.
Categories of Counterfeit Motorcycle Policies
Shady bike covers usually fall under two broad categories:
Offline Fake Policies Earlier
Agents-issued physical copies of bike insurance allowed unauthorised middlemen to exploit customers by creating fake bike insurance policy papers on letterheads of genuine insurance providers they didn’t represent.
Online Fake Policies
As purchasing insurance shifted online via insurer websites or aggregators, tech-savvy scammers also migrated online. They build advanced fake websites and apps closely resembling top insurance companies and sell bogus digital bike plans.
For example, you chance upon too-good-to-be-true discounts or cashback on premiums while browsing for bike covers. Tricked into buying without checking credentials, you realise much later that fraudsters duped you with counterfeit paperwork and disbanded after collecting payments.
Strategies to Prevent Buying Fake Bike Insurance Online
Here are some prudent tips to avoid getting scammed:
- Purchase directly from the official trusted websites of insurance providers like TATA AIG.
- Check for the mandatory Insurance Regulatory and Development Authority of India (IRDAI) registration number displayed prominently by all genuine insurers.
- Cross-verify the insurer’s name on the IRDAI website’s list of non-life insurance companies before making payments.
- Insist on seeing valid identification and licences from agents before dealing with them.
- Scrutinise insurer websites thoroughly, checking for contact information, addresses and testimonials.
- Read app descriptions, reviews, and privacy policies thoroughly before proceeding.
- Beware of unbelievable discounts or cashback offers. Reconfirm directly with providers via call centres or social media channels.
- Only opt for policies from trusted insurers with longstanding market reputations.
- Use credit cards or credible net banking options during payments. Avoid dealing in cash with lesser-known agents.
Implications of Buying Fake Bike Insurance
A few implications of getting a bike insurance fake copy include:
- Total Loss of Premiums: The invalid bike policy holds zero financial value, while you need to purchase genuine insurance again. This double loss of premium amounts causes sizable monetary damages.
- No Protection from Accident Damages: You remain vulnerable to out-of-pocket expenses running into lakhs for bike damages, medical bills, etc. Also invites heavy fines under the Motor Vehicle Act for riding uninsured.
- Identity Theft Risks: Sharing personal information like Aadhar and PAN details with shady websites heightens the chances of confidential data theft, leading to bigger financial frauds via online modes.
Conclusion
With improving IT infrastructure, verifying insurers’ credentials before purchase is vital. Transacting directly via credible company websites, checking licences and paying through regulated avenues can prevent getting duped by counterfeit online two-wheeler policy. While cost savings are important, being vigilant saves you massive financial and legal troubles.
