Precautions to avoid Life Insurance Fraud | SBI Life

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Life insurance fraud: How you can stay safe

Insurance Basics & Financial Advice While purchasing a life insurance plan, you need to be vigilant and wary of frauds. You might not just suffer a monetary loss, but it can also cause you emotional turmoil.

Life insurance fraud: How you can stay safe

7 Minute |

Life Insurance Fraud Prevention Tips

While purchasing a life insurance plan, you need to be vigilant and wary of frauds. You might not just suffer a monetary loss, but it can also cause you emotional turmoil. 

A few cautionary practices will steer you clear of any life insurance scam. We give you a few scam prevention tips to ensure that you do not fall prey to life insurance fraud when purchasing a policy

1.Thorough examination before buying the plan

The foremost tip to avoid life insurance fraud is to carefully scrutinize the policy brochure before purchasing a life insurance plan. Go through the terms and conditions and understand the implication of each. Being familiar with the details of the insurance policy will give you adequate knowledge to detect any discrepancy at a later stage. 

2. Read the policy documents properly for ensuring authenticity

Even if you are well aware of the details of the plan you are purchasing, do not fill the policy papers without reading it. Verify the details given in the policy papers with the facts stated in the brochure. Such verification assures the authenticity of the policy documentation and helps you stay safe from life insurance frauds. If you are buying the insurance from an intermediary, verify their credentials to be sure that he is a licensed agent. 

3.  Do not submit original personal documents 

One of the most stressed upon tips to avoid fraud in any transaction is never to submit your original documents. Insurance companies never ask for original copies of documents like PAN card, passport, bank account passbook, driving license, etc. If any person asks for your original documents, immediately contact your insurance company about the incident. 

4. Pay your premiums online

Among the widely advised life insurance fraud prevention tips is the safe practice of online payment of premium. Online payments through the insurance company’s website prevent any possibility of fraud. However, if you are making the payment offline, use cheque or a demand draft payable only at the authorized branch of the insurance company. 

5. Be careful with the cheque

The wisest scam prevention tip calls for the utmost care from an issuer of the cheque. When paying a premium for a life insurance plan, as is in any other transaction, never issue a blank cheque. Blank cheque’s can be easily tinkered with and cause you significant trouble and financial loss.

6. Ensure the confidentiality of User IDs and passwords 

At no stage of a transaction relating to your life insurance planyou are needed to convey your insurance website account’s user ID and password. It is highly confidential, and not even the insurance company officials are supposed to ask for it.

7. Verify the insurance company representatives 

A critical tip in fraud prevention is to be cautious when dealing with people claiming to be the representatives of the insurance company. Ask for the identity card and company license issued by the Insurance Regulatory and Development Authority of India (IRDAI) from the person claiming to be the insurance agent. Also, report your meeting and verify their details from the company. This will keep you from getting duped by fake agents. 

These effective fraud prevention tips can help you stay safe from life insurance fraud and keep your mind at ease     


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