By Dr. Kavita
There is no dearth of fraudsters these days and each new day brings in a new case of fraud that was committed somewhere on the globe. Insurance fraud is probably one of the highest rankers in the category of scam-like operations.
Insurance fraud is on the rise
Statistics reveal that fraudsters have not left the insurance niche alone in their attempts at conning people. The usual type of insurance frauds is centered on bogus premiums. People are tricked in to buying insurance and the premiums they pay are then siphoned off in to the fraudster’s account. The unsuspecting customer keeps on paying the premiums on time and finally when there is a claim, he/she is shocked to know that none of the premiums were paid.
Whatever be the mode of fraud conducted, it is necessary for you to protect yourself from such attempts. How can you protect yourself? Here are three tips that answer this question for you:
Get familiar with the insurance company or you will succumb to insurance fraud
You have to put on your detective glasses when you deal with any financial transactions online. Now that insurance frauds are so common, it always helps to enquire thoroughly about the company that has approached you with their insurance plans and offers, before you sign up and pay the premiums.
A good rule of thumb is that anything that is too good to be true usually is a sign of trouble. If you have been approached by a certain insurance company with a great offer, research the whereabouts of that company online. If you cannot find any proof of their license or affiliation with the State Insurance Department, then you ought to back away before it is too late.
Ask for proper receipts and proofs to avoid fraud
You should not pay a single cent without first asking for documentary proof and receipt. A fraudster will not be able to furnish a legitimate receipt or any documents related to the insurance company in question.
All the insurance statements ought to come from the insurance company and not from the agent or his / her firm. If such a thing happens it is the first indication of fishy business going on.
Never deal with unknown or strange insurance agents
You should always ask for one or two references before you deal with an insurance agent. Also make sure that you never ever make any payments in cash or check to the agent. All payments should always be addressed to the insurance company.
Do not sign on any form that is incompletely filled. Usually these forms are presented with a false claim that the agent will fill in the necessary details at a later date. The agent who has an intention of conning you will fill in such details on the form that make stealing from your money, quite easy for him/her.
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