Motor insurance policies have become a common place among Indians over time. However, it might come as a surprise to many that there has been a substantial rise in fake motor policies in the last three years. Yes. Very recently, the Insurance Regulatory and Development Authority of India (IRDAI) came up with the year-wise break-up of fake motor policies in last three years. The number of fake motor policies have increased from 823 in FY2018 to 1192 in FY2019, an increase of 45 per cent Y-o-Y. Further, IRDAI also highlighted the complaints directly received related to fake policies issued by these entities, which were not registered as general insurers with them. This included AKPCL General Insurance (2016), Gone General Insurance (2019) and Marines Technology’ (2019). The insurance regulator has warned general public by issuing a public notice to not make any transaction pertaining to these companies and to bring any unauthorised transaction to its notice. Furthermore, a complaint with police authorities against these fake insurance companies has been lodged.
In 2013, IRDAI, had already issued a circular to all insurers and reinsurance companies for putting a proper fraud monitoring framework for identification, classification and monitoring of frauds. That said, so far IRDAI has carried out insurance awareness campaign through print media in 13 languages. It has launched a consumer education website (www. Policyholder.gov.in) as single point reference for dissemination of information about consumer guidance and protection including in regard to motor insurance. IRDAI has given a checklist to see if your policy is authentic and also to ensure that every product is registered with IRDAI has a Unique Identification Number.The checklist goes as listed:
1. The list of approved products is put up on IRDAI website each year along with UIN.
2. The policyholder can check the details of their motor insurance policy on Insurance website
3. The policyholder can check if their insurers are registered with IRDAI.