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Some Must Follow Do's And Don'ts With Insurance Policies


Recently as per a leading daily report, a new kind of fraud in respect of insurance policies came to light and to create awareness on it and hence once again warn people of such possible incidences, it will be worth a while to discuss it here.

Some Must Follow Do's And Don'ts With Insurance Policies

Miscreants found to be working with some leading insurance players have stolen the data from such companies during their working tenure with them and now have misused them in the way discussed herein. Here the targeted individuals were primarily elderly who do not suspect much and yield in to the different benefits and offers put forth before them.

These people were targeted saying that their insurance policy have been selected for some bonus and to avail of such bonus benefit they would need to deposit some sum of money to crack a code pre-set by the insurer for availing the bonus amount.

Nonetheless, many elderly on persuasion gave in to the demand and this fraud has led to a loss of over Rs. 7 crore.

So, here are some do's and don'ts when purchasing a new or renewing an existing insurance policy:

1. Registered on licensed entities who have IRDAI or Insurance Regulatory and Development Authority of India should be approached for any kind of dealings such as buying a policy. In the wake of the discussed incident, one should be utmost careful in regard of the fraudulent intermediaries that creep in.

2. IRDA does not distribute any bonus amount on the different policies, so beneficiaries be aware such misguiding lures and benefits should not entice you.

3. Also any attempt at misselling an insurance policy in the misperception that on purchase IRDA will provide the new insured some bonus amount against the policy issued should not be entertained by the approached person.

4. Also, no representation or sales agent of any of the insurance company unless fraudulent would ask the insured to surrender the existing cover and against it buy a new cover, which in some time will provided added benefits.


5. Avoid such people who claim to representatives of the insurance regulator IRDA and engage in selling insurance plans of different insurers.

6. There have also come to fore cases wherein miscreants have resorted to ask existing insurance customers to buy a new policy in order to be entitled to the benefits such as maturity or bonus or survival benefit under an already running insurance scheme. So here in all you need to have an alert mind and fall prey to such wrong doer's attempts.

7. To further highlight the situation at hand, IRDA neither directly nor through reps engages in the practice of selling of insurance policies.

8. So, engaging in any of kind transaction with such a concern shall be done at one's own risk.

Read more about: insurance irdai
Story first published: Sunday, September 23, 2018, 17:40 [IST]
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