Here are five key red flags to watch out for:
Misleading product pitches
“Many first-time buyers enter the process without fully understanding what they are signing up for,” says Prashant Singh Rana, CoFounder of Plus91Labs. Overly aggressive or vague sales pitches can mask exclusions or limitations in the policy. Always read the fine print and clarify doubts before committing.
Unsecure digital channels
Sharing personal information on unverified links or completing KYC through insecure platforms can expose you to fraud. Rana advises,
“A customer journey engineered with transparency and security is essential. Ensure that all communication and transactions happen via official channels.”
Using unverified apps or platforms
Rahil Patel, CGO of QNu Labs, stresses that first-time online buyers must ensure they are using authentic insurer apps or websites. Fake or unofficial platforms are a common tool for fraudsters looking to steal personal and financial data.
Overlooking data security measures
Digital convenience comes with risks. Patel notes, “Bad actors aim to defraud customers, jeopardizing both personal safety and the insurer’s reputation. Insurance companies adopting advanced technologies like quantum cryptography can minimize data theft, but buyers should remain cautious and informed about how their data is stored and shared.”
Ignoring policy clarity
Understanding policy terms is critical. Check coverage limits, exclusions, claim procedures, and renewal conditions. Lack of clarity can lead to denied claims or unexpected expenses, turning a seemingly simple purchase into a financial headache.
