Insurance Frauds & Scams – 5 Red Flags You Should Never Ignore

Insurance Frauds & Scams – 5 Red Flags You Should Never Ignore

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 It Happens More Than You Think


Insurance fraud isn’t just done by fake agents — sometimes even policyholders get trapped in scams without knowing.

One small signature, one fake call — and your hard-earned money is gone.


Here’s how to stay alert and protect yourself.


🚩 1️⃣ Fake Calls Pretending to Be from Your Insurer


Scammers pretend to be from your insurance company. They ask for your OTP, card details, or a “verification fee.”

Rule: No real company ever asks for confidential info on a random call. Hang up. Call back using the official number.


🚩 2️⃣ Unrealistic Premium Offers


“If you pay today, you get 80% discount for lifetime!” — sounds sweet, right?

Sorry — legit insurers don’t sell miracle policies at throwaway prices. If it’s too good to be true, it usually is.


🚩 3️⃣ Fake Agents with Real-Looking Papers


Some scammers pose as “licensed agents,” flash ID cards and brochures — all fake.

Always check agent credentials on your national insurance regulator’s website.


🚩 4️⃣ Forged Claim Settlements


Be careful during big claims. Some fraudsters pose as “helpful” middlemen who promise to fast-track your payout — for a “small commission.”

Your claim money may never reach you if you trust the wrong person.


🚩 5️⃣ Phishing Emails


You get an email: “Your policy is expiring, click here to renew.” The link looks real — but isn’t. One click, and your data is gone.

Never click on suspicious links. Log in directly via the official company site.



Real Story – A Costly Lesson


Last year, my cousin’s friend trusted a “family agent” for a quick health policy. He paid $500 in cash — no receipt.

When he got sick and tried to claim — the company said, “No such policy exists.” Money gone, trust gone.


Stay Sharp – Stay Safe


Insurance is meant to protect you, not trap you. Always:

✔ Verify calls, emails, agents

✔ Demand receipts for every payment

✔ Double-check policy documents

✔ Report suspicious offers



One small check today can save you thousands tomorrow. Be smart, be safe — and share these red flags with your friends too.




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