5 Tips On Avoiding Insurance Fraud

Fraudulent activities and illegal acts are rampant, especially in the insurance industry. There are a number of insurance providers that are luring naïve individuals with their fantastic insurance coverage and affordable premiums. As a result, these individuals find themselves shelling out money for nothing.

To ensure that you are dealing with legit motor insurance companies in Dubai, be sure to watch out for these red flags when shopping for an insurance policy:

  • Lack of business permit to operate

One of the first things that you need to check when you are shopping for an insurance company is to know whether they are registered and are allowed to operate in the jurisdiction. Most shady insurance companies try to avoid dealing with governing agencies as much as possible, for the fear of being audited and checked. Once a representative start walking you through the process, stop his/her on his/her tracks and asked for a copy of their business permit. It would be best if you can also ask about their affiliation with credible organizations.

  • Lack of business visibility

When a business lacked profile, whether online or offline, then it is something that you need to check thoroughly. A business who hides their identity or using other business entities as a front is not a good sign. This would mean that they are not a legit company and is using different permits to operate as a business. It would be best if you can check their profile on the list of incorporated business.

  • Too-good-to-be true offers

People who are looking for affordable insurance policies are often the target of these shady insurance companies. At first, the coverage are quite stunning for its price. But when it is time for you to use it, you pay more for policies that are not included in the terms and condition. Learn to discern this kind of offers and see if they are overpromising.

  • Hard-to-reach representatives

Insurance representatives are your point person when you have questions regarding your policy. But if the representative given is not available most of the time, this spells as bad customer service. Try to gauge the representative upon initial consultation to check if they are credible to deal with.

  • Bad reviews

Word of mouth is a good source of information when it comes to checking a company. When you find a number of less than stellar reviews, it is an indication that the insurance company is not that dependable to deal with.

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