The working of a policy is very different from how a product customer engagement works in the industry. We usually buy a product and use its features or services or we purchase a service and can use all that it has to offer instantaneously. With insurance, the different part is that in paying premiums all we get in return is a policy document which is a kind of acknowledgment of the promise that makes sure that we get what is being promised by the insurer. So, the working is completely different. We pay for a service we may not use or could use in the future.
The insurance companies trust the person with the information they are providing that is necessary for the policy documents. Trust is an important part of any contract and that is the simple reason why is person is requested never to lie while getting a policy. You should always be true and transparent to the insurer.
The common things which people sometimes lie about while getting motor insurance are:
Vehicle Condition:
When buying their insurance people have often been seen to lie about the age of their vehicle to save some premium. Also, a lot of people try to share false information about the damage and the condition of the vehicle during the process when the claim is raised and the vehicle is inspected.
Vehicle Usage:
The insurance purpose and mode for private and the commercial vehicle are completely different. People have often been seen lying about the usage of their car. Occasionally a private car with the license and insurance for a private car is used for commercial purposes.
Claim History:
Claim History plays a decent role in deciding the premium of the car insurance. It has a huge impact on the no claim bonus and thus eventually on the insurance premium.
What could be the reason to lie to the insurance companies?
With restrictions, there is not much scope for people to lie to the insurance companies and get away with it. Some basic reasons of why a person could lie when it comes to getting insurance could be
Saving money on premium:
While third party car insurance has low scope but in a comprehensive plan the person can manipulate a few things to get the premium of the insurance low and this could be a huge saving in long run and thus people do opt for false means sometimes.
Claim Settlement:
This is a frequent manipulation when the events are described in a way such the person can file for more claim than is required. Those who wish to take this advantage sometimes state the previous damage of the vehicle also in the present insurance cover and thus try to save the complete amount.
Eligibility:
People also try to make some fake documents to get the insurance which they are not eligible for otherwise. There are certain add ons which are not allowed for the old cars but by showing the correct age of the car the person can get this insurance add-on.
Lying to the insurer can lead to the policy cancellation, also the claim could be denied apart from this there could be legal consequences to this decision as well. Buy car insurance online and save some money in getting the insurance.
