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The Basic Steps To Avoid Insurance Fraud
Insurance fraud is quite becoming common nowadays. It is not that all insurance companies follow this kind of fraudulent crime, but there are some who do so. You can almost say that it has become a part of the insurance industry and is an unavoidable thing. As a conscious insured individual there are various steps that you can take to avoid getting trapped by fraud insurance companies. Let us check some of them
Purchase Insurance Policy
The first thing that you always need to do is never purchase the first insurance policy that you see. Never buy an insurance policy instantly. Always conduct some extensive research and compare the various insurance policies that are available in the market. Just like how you would compare the different commodities available in the market while buying food, electronic items, etc. Also take time to review the rates, features, and types of insurance of various companies.
Review the Insurance Company
Always make sure you know a lot about insurance companies before you select an insurance policy. You have to review the background and reputation of the insurance company or the agent. Try to find out how long the company has been in business, who are the potential customer, check the reviews of the customers who took the insurance policy from them, etc. Besides that you need to verify the license of the insurance company or its agent.
Authorized Insurance Agents
It is very important to purchase insurance policies from authorized insurance agents and companies. Unauthorized insurance companies are illegal and a great threat as they will leave the policyholder without any insurance coverage. So in short, it means that you will be completely unprotected when you submit an insurance claim.
Method of Payment
Be very particular about the way you may payment for your premium. Try to avoid paying by cash. You could choose money order or check to pay for your insurance premium so that there is a valid record. Also always make sure to get the receipt that proves that you have made the payment. It would be good if you pay the premium directly to the insurance company rather than through an agent.
Try to keep this important point in your mind i.e. read the offer document very carefully. Take your own time and check the entire clauses and rules that are there in the insurance application. Pay attention to the minute details, as even one small error can cause a huge problem later on. Besides that, make sure not to sign any blank application form or blank forms.
This is a thing that you need to watch out for. Be honest while answering or filling the application form. If you in case submit false information, it can lead to serious consequences. Your insurance policy will be revoked, leaving you with no insurance policy and protection. To make matters worse, you could be heavily fined and even prosecuted for giving false information. Make sure to never allow an insurance agent or agency to convince you to file false data.
Copy of Insurance Policy
The important thing that you need to do is try to request a copy of the entire insurance policy from the insurance agent or company. It is important that you do so within the reasonable time period. If you don\’t receive a copy of the policy first contact your insurance agent and then the Department of Insurance in your jurisdiction. Also make sure to retain all the copies of the insurance document and the premium payment for the future reference.
In short, insurance fraud is becoming a common crime that some of the insurance agents and companies are following. Whenever you log on to your cable TV or fast speed internet connection that most of the service providers like ATT Uverse are providing; you are bound to see many cases regarding insurance fraud. So whenever you opt for any insurance premium, refer the above given points to choose the best and the safest insurance policy.
Being a freelance writer and active blogger, Mark likes to share his thoughts with the rest of the world and to sources out some great services that of
. According to him insurance fraud is becoming common nowadays and people need to be more aware of such it.