When you have auto insurance, you are expected to take responsibility for your own actions and keep your policies up to date.
You are also expected to be responsible for all the other drivers who are injured or killed by your car.
However, auto insurance companies have been caught red-handed offering auto insurance scam and even the Supreme Court has asked them to pay out large sums of money to their customers.
The top auto insurance brokers in the country are using a ‘black box’ system of collecting claims and making payments, even when the drivers are injured and killed, and they do so under false pretenses.
“If the car is hit by a bus, a tractor trailer or a truck, the insurance company will pay for the damage to the vehicle.
But if it is a motorcycle, it will not cover the damage.
If the motorcyclist is killed by a fire, the company will not pay for damage to his or her vehicle,” said Ankit Goyal, the managing director of Allstate Insurance Pvt Ltd, which operates in 11 states.
According to data compiled by Insurance Council of India (ICI), there were 633 cases of people who were injured or died as a result of auto insurance fraud, which includes death, property damage and property loss claims.
The scam is mainly targeted at middle-class families and the elderly, who are more likely to carry auto insurance.
A similar situation is found in other industries.
“The insurance companies are also using a black box system.
The claims are collected and processed by automated systems and the claims are processed without human input or input by machines.
When a case is referred to the insurance department, it is taken up with the insurance broker.
The compensation is not disclosed to the person who was injured or the victim’s family.
The person who is injured or dies has no recourse,” said Bhanumurthy Raj, managing director at insurance broker Avid Life, who has received complaints from consumers.
According the Insurance Commission of India, all states have banned the use of black box claims processing systems.
“There are a number of reasons for this.
For one, the black box systems are designed to keep the claims confidential, and it is not clear how much information is needed to process a claim.
Also, there are no rules to ensure the privacy of the data collected,” said the commission’s chief spokesperson Rajiv Kumar.
The commission has asked the companies to make sure the information gathered by the systems is secure and not released to third parties.
“This is one of the reasons why the companies have not disclosed their data to the consumers,” said Raj.
A lot of information has to be collected from each case and then the insurance companies can send the information to third party companies for processing, said Anand Sharma, founder of consumer group Consumer Affairs, which has been working for the past six months to ensure that such information is shared with the consumer.
“It is not just about money.
It is also about the safety of the consumers and they are being misled,” said Sharma.
According To the insurance industry experts, the number of accidents involving people on motorcycles has doubled in the past five years.
The increase is because of the growing number of motorcycles, which have become more popular in the city.
The accident rate in the first quarter of 2016 was around 3.8 accidents per lakh motorcyclists, compared to a rate of 3.1 accidents per million in the same period last year, said Raj Gupta, vice-president of market intelligence at insurance brokerage, AvidLife.
According, the accident rate on motorcycles is around 10 times higher than the average rate for cars.
“Most people don’t want to pay more than Rs 1 lakh for auto insurance but these policies are sold for Rs 3,000,” said Gupta.
The rates on cars have increased from Rs 1,000 to Rs 2,000.
“In the past, people were more likely buy the car because it was cheaper.
Now they are looking for the bike as it is safer.
So, the industry has come under pressure.
The industry needs to do better,” said Goyal.