Insurance fraud by fake agents targeted by firms
The industry in India is fed up with the number of pretenders who are giving legitimate companies a bad name.
One of the most frustrating struggles faced by firms in India is the insurance fraud occurring as a result of fake agents pretending that they are selling real policies to unsuspecting consumers.
The industry is now fighting back by becoming very active in battling this issue alongside the authorities.
The Insurance Regulatory and Development Authority (IRDA) has been issuing occasional recommendations regarding what can be done to help to battle the insurance fraud occurring as a result of fake agents who are duping customers. Now it has broadened its efforts by issuing a wide scale cautionary statement to the public.
The statement from IRDA warns consumers to be careful that they don’t fall victim to insurance fraud.
The IRDA insurance fraud statement warned the public to beware of fake agencies or agents that pretend to act on behalf of legitimate insurers. It recommended that customers check the veracity of an agent and agency before signing anything or handing over any money. The IRDA also warned that while it can assist consumers when there is a struggle with a real insurer, when a customer has been duped by a scam that is no fault of a legitimate insurer, there is little that the authority can do to help resolve the issue.
According to an Ernst & Young partner, Ashvin Parekh, “IRDA has no jurisdiction on a person who is not a licensed insurer or a broker. Hence, in case of such frauds, it’s best to get in touch with the insurer and police wherever necessary.” Insurers have stated that they are now beginning right at the foundation level to assist consumers who have fallen for insurance fraud to be able to achieve a resolution.
They are working from the ground up to weed out these fake agents and agencies to stop their insurance fraud in its tracks. They are using methods that include everything from keeping communications open with their customers to making posts on social networking pages, adding content to the company websites, and producing informative consumer newsletters.