How to deal with ‘suspicion of fraud’ for getting a new insurance card
How to spot a scam and the right answer for dealing with a potential fraud complaint.
The next step is to get a new policy.
As per a recent survey by Accenture, India’s insurance regulator, more than a third of Indian insurers have decided to suspend or revoke policies for those who have gone through the process of getting a policy renewed.
It is an issue that has become a concern among consumers.
According to a recent report by The Times of India, in a year-on-year growth of 2.5 per cent, the average policy renewal cost was Rs 7,000-9,000 more than the previous year.
Some of the major insurers, including State Bank of India (SBI), ICICI, and Reliance, have already suspended or revoked policies.
In August, SBI announced a “fraud prevention” policy for consumers that will be in place for two years.
Meanwhile, the Insurance Regulatory Authority of India is monitoring the situation and will be providing updates on the status of the policy suspension and revocation process in the coming days.
ICICI and Reliant are also monitoring the issue and have promised to respond on the situation in the next few days.
The recent report also says that a large number of consumers are seeking help for “susceptibility of fraud” or lack of understanding of policies.
It says that among those who were asked for an explanation for their cancellation, about 30 per cent were unaware that the policy had been cancelled.
While a large proportion of those who had received a cancellation were unaware of the cancellation, a much smaller percentage were aware of the existence of a policy termination.
“These consumers are either unaware that a policy has been cancelled or they are aware of it, but they are not aware that their policies have been terminated,” says Anant Kumar, president of the National Association of Insurance Agents (NAAI), a trade body representing insurers.
As many as 70 per cent of Indian consumers have not read the terms and conditions of their policy, and it is unclear whether this is due to ignorance or incompetence.
Many consumers have told me that they have not understood the terms of the insurance contract or they have misunderstood the policies and have no idea if they have cancelled their policy.
This, of course, is not to say that many of these people are likely to be fraudulent.
But the insurance industry has to work to correct this problem.