Know About Common Insurance Scams

Outlook Money

Here are some of the common insurance scams you should be aware of  

Identity Theft: Identity scam has a significant impact on the healthcare and auto insurance industries. In this, thieves use the victim’s information to buy insurance policies and/or make fraudulent claims in the victim’s name.


Fake Promises:

All insurance policies have some exclusions. Thus, it is recommended that customers make sure they cross-check the product features and benefits on the insurance company's website or brochure before buying the insurance plan.


Manipulative Calculations:

Customers must ask for company standard illustrations, as handwritten calculations can be manipulative. Remember to carry out the calculations on the insurance company’s website or any other company’s standard illustration. 


Do Not Rely On Unverified Sources Of Information:

If customers feel they are being misled or not being provided with clarity on their doubts against the circumstances around claim settlement, like what type of claim is payable and what is not, they should cross-check all the details on the company's website or the aggregator’s platform.


Refrain From Paying In Cash:

Avoid paying insurance agents in cash. In case of doubt, verify the payment information by calling the customer service. This will prevent money from being inadvertently transferred to an agent who could hide it under a similar name.


Beware Of Ghost Policies:

Ghost policies are common in the health insurance industry. They involve brokers or agents selling fake plans to customers, and pocketing invoices without issuing invoices as promised. Therefore, one must be aware of ghost policies. 

Compiled by Syed Muskan