Fake Motor Insurance Policies Doubled in the Last Two Years – TyreCafe

by Editor News

Statistics show the increase in the number of fake Motor Insurance Policies from 498 in the year 2016-17 to 823 in 2017-18 and the highest number of 1192 in 2018-19.



As per the reports of IRDAI fraud monitoring cell, the cases of fake motor insurance policies have reached with the data showing the reported cases from 498 to 1192. The cost of these fake policies sold are worth 53.7 crores.

Statistics show the increase in the number of fake policies from 498 in the year 2016-17 to 823 in 2017-18 and the highest number of 1192 in 2018-19 as addressed by the finance minister, Nirmala Sitharaman in the parliament in a written reply at the start of this month.

Most of the fake licenses have been sold to the two wheeler owners and truck owners to avoid any critical situations during vehicle checks by the traffic police. Most cases dealt include the second hand vehicles that do not care of safety and rather buy it for the statuary compliance. Some insurance companies had registered their direct complain to the IRDAI namely AKPCL General Insurance Company Ltd’ in 2016, Gone General Insurance and Marines Technology in 2019 — for fake policy sales, in the past.

“Finding fake policies is not new to the insurance sectors. Fake agents mislead customers using our brand name to sell at lower rates,” Sanjay Datta, head of underwriting, claims, reinsurance and actuary of ICICI Lombard, said. The companies have come out with many solutions including fixing of 3d holograms, bar codes for the detection of the details of the policy and also by educating the police officials and investigating agencies to be able to differentiate between them.

Atul Deshpande, the COO of SBI general insurance claimed the the wide range of initiatives has been taken by the companies to fight the situation. He also claimed that the QR code and the hologram has also been introduced on the insurance beside the bar code. This can be an important step in India where almost 70% of the vehicles are not ensured.