ACKO Acts against Motor Insurance Scam, Protects Millions of Bike Owners and Promotes Awareness

ACKO, a leading direct-to-customer insurer, busts a significant online motor insurance scam. The company so far has identified over 200 cases of fraudulent activities by individuals purchasing two-wheeler insurance policies against their private four-wheeler vehicles and commercial vehicles by misrepresenting them during the purchase. Complaints have been filed by ACKO against fraudsters across the country under IPC Section 420 (cheating) and the Information Technology Act.

Engaging in insurance fraud is a serious offense with severe consequences. Individuals found guilty of insurance fraud may face criminal charges, including fines and imprisonment. It is essential to adhere to honest practices when purchasing and claiming insurance to maintain the fairness and trust of the insurance industry.

ACKO has observed a concerning rise in digital motor insurance fraud cases in the Southern regions of India, particularly in the states of Karnataka, Andhra Pradesh, Kerala, and Tamil Nadu.

ACKO has taken cognizance of such scams and has not only voided the policies based on misrepresentation of information but has also taken strict legal action. The brand goes beyond simply reacting to fraud. ACKO has issued a public notice to notify the policyholders about such malpractices. The company actively promotes awareness and empowers its customers with knowledge. This commitment is evident in their public notice and their emphasis on purchasing policies directly from their verified app and website

While commenting on the scam, Rajesh Dhane, VP - Litigation & Investigation, ACKO, said, "Customers’ rights and security is paramount for us at ACKO. We continuously strive to protect the interests of the customers and bring to light any fraudulent insurance activities. For the recent cases that have come to the forefront, we have actively collaborated with local authorities to apprehend the culprits. Our efforts to identify and eliminate such scams extend across all cities, and we are confident in eradicating this practice."

This proactive approach demonstrates ACKO's unwavering commitment to protecting its customers and combating insurance fraud.

Car insurance scams in India are a concern for both policyholders and insurance companies, therefore, it is essential to understand how to identify the telltales of fraudsters.

1. Buy the insurance policy directly from the insurer: To ensure the purchase of an authentic insurance policy, customers should buy insurance directly from an insurer like ACKO which is registered with the IRDAI

2. Ask for insurance premium receipts: Customers should always request an insurance premium receipt. In case the customer finds that the policy is fake, they can use the receipt as proof while fighting the fraudulent insurer legally

3. Read the fine print of the policy: Ensure to read the insurance policy’s terms and conditions thoroughly to understand the benefits and features. If the customers find an error in the policy, it is prudent to have it rectified with the insurer

4. Pay via cheque / online mode of payment/credit card: This ensures the payment is directly made to the insurance company and customers should always cross-verify the bank details before making the payment transfer

5 Verify Via the QR code: As per the guidelines issued by IRDAI, a QR is compulsory for every insurance policy. Customers can scan the code to verify if the policy is genuine or not. The QR code of the policy contains the status and the details of the insurance plan helping you verify the authenticity of the policy

6. Do not sign on blank forms or cheques: Customers are urged to fill the policy documents on their own. Do not sign on a blank paper/form or cheque to avoid fraud. Signing on a blank document or cheque gives the fake or a legit agent to buy a different insurance product using the form signed by the customer

7. Do not fall for unrealistic benefits: It is advisable to suspect calls or approaches by agents offering unrealistic benefits and features that are too good to be true. Agents or insurance companies providing such services cannot provide benefits beyond the scope of the policy; hence, verify twice with the insurance company before falling for the fake offers