We pay for the services or product we need. But there is something we pay every year for an expected risk related to our life or its assets.
Yes, I am talking about insurance, insurance is something we pay for and get only a policy paper as a promise to get compensation in case anything goes wrong.
This is a kind of mutual understanding between an insurer and insured. However sometimes people mislead the insurer to save a few bucks of insurance premium.
This kind of behavior leads to a broken relationship between both insurer and insured.
The insurer trusts the person based on the information provided by them either verbal or written.
Trust is one of the most important aspects of a contract and that is the reason we recommend to provide the true information always with the insurers to make this relationship long lasting.
So here is the list of things on which people misguide the insurers.
Vehicle Condition:
People often lie about the vehicle condition while buying the motor insurance about the age and physical condition of the vehicle.
And when the claim arises, this will become a controversy between insurer and insured on the claim settlement.
Vehicle usage:
There are lots of categories available for vehicles to register like commercial vehicles, private vehicles, however people often caught lying on the vehicle category. And they renew their vehicle in the private car category and use it as a commercial vehicle.
Claim History:
People are often seen ignoring their claim history to get NCB (No Claim Bonus). As NCB is something offers upto 50% discount on the premium thus people taking the advantage of the NCB by hiding their claim history which is again a controversy if a claim is aroused.
Reason behind the mindset of saving in motor insurance:
Here are few of the reasons why people mislead the insurers:
Saving money on premium:
Third party insurance is something which is compulsory and not eligible for any kind of discounts. However comprehensive insurance is something where people play with insurance companies to take the insurance premium down and provide fake information related to the vehicle.
Claim settlement:
Sometimes people mislead the insurer by showing the previous or old damages to the insurance company to repair the all damages of the car and try to include such incidents with the current claim application. The intention behind to save the money which has to be spent on the previous damages of the vehicle.
Eligibility:
Sometimes the car is not eligible for comprehensive insurance just because of its age, where people submit the fake documents to take the comprehensive insurance with other add-ons which is actually not allowed on that vehicle due to certain reasons.
This kind of act could lead to policy cancellation or claim rejection and apart from this there could be certain legal consequences which can lead to some legal action against the act as well.
