Insurance firms get serious on fake agents

Dealing with fraudulent agents has been one of the big issues for prospective and existing customers of insurance companies.

The Insurance Regulatory and Development Authority (Irda) has periodically issued advice on what is to be done with individuals posing as insurance agents to dupe customers of their money. Last week, it issued a warning to the public, asking it to be careful of fake entities acting as insurance companies. The regulator wanted customers to check an entity's veracity and the insurance arrangement promised before making any payments.

In the case of a normal complaint filed with Irda, the regulator can direct it to the particular insurer. However, if a customer falls prey to fraudulent activity, where there is no fault of the actual insurer, it will be difficult for Irda to resolve.

Additionally, most insurers have a risk investigation team; it helps trace back the numbers from which customers are called. According to experts, most of the numbers traced are from the northern part of India, including Noida and Delhi.

Source - BS.com