Even when it comes to insurance, you can fall victim to a scam. When an offer seems too good to be true, it’s probably fraud. At Matcha Insurance, we want to protect our clients—not only in terms of quality personal insurance products, but also against insurance fraud.
That’s why we encourage you to read this article, where we suggest ways to detect possible fraud:
Take the time to find out who you’re dealing with
You get a call from a very friendly person claiming to represent company X. They assess your insurance needs by collecting your personal information and offer to sell you insurance at a very competitive price, all with or without promotional products unrelated to insurance.
Before committing to anything, take the time to check whether this person is who they claim to be, i.e., a legitimate representative authorized to practice, by consulting the Autorité des marchés financiers (AMF) register of firms and individuals authorized to practice. In Canada, personal insurance brokers must hold a valid licence and be registered to sell insurance products.
Check the accuracy of the information provided
Take the time to check the information on your documents. Is the policy linked to your actual phone number, email address and home address? Also, make sure you always provide truthful information and take the time to check for errors. If you notice something is incorrect, contact the company to make the necessary corrections. Failure to correct certain errors could be construed as a misrepresentation on your part and jeopardize a potential claim. To learn more about misrepresentation, we encourage you to read our article 3 reasons why your insurer may refuse to pay out.
Also make sure that the content of the policy is consistent with what was discussed with your broker. Take the time to read the policy carefully and feel free to contact your representative if any clauses are not clear to you. It’s essential that you understand the insurance product you’ve purchased. It’s a matter of protecting you and your loved ones in the event of your death.
Nothing in insurance is paid in cash
A real insurance broker will never ask you to pay for your products in cash or require you to give them a cheque made out to them personally. If they do, be careful! Insurance products are paid for by cheque or direct debit. You have the option of paying your entire premium for the year in one lump sum or spreading your payments out over the year. Just make sure you always have the funds to cover your payment to keep your insurance valid.
If you doubt that the person you just dealt with is not legitimate, report it! If this individual is indeed a fraudster, they’re collecting money for products that don’t exist, which means you have no insurance coverage. This could have serious consequences for you or your loved ones if you become disabled or die.