Dubai Police authorities have warned residents against fraudulent insurance companies, stressing that it is important to verify official documents and licenses before paying any money. This warning is part of a campaign to raise awareness about the rise in operators who use social media to spread deceptive offers to lure unwary victims.
These illegitimate companies advertise their policies frequently at prices that are significantly below the standard market rate. These companies often advertise instant health or vehicle insurance and pressure users into making quick payments. They do not confirm the legitimacy of their provider or the regulatory approval.
The UAE has issued similar warnings. Ras Al Khaimah Police warned the public earlier this year about online fake insurance ads, especially those that promoted unrealistically low rates. The authorities reiterated the fact that all insurance companies licensed in UAE are subject to strict regulation and adhere to procedures designed to protect customers’ rights.
Residents must verify credentials before completing any transactions. They should also avoid deals that seem to be too cheap or out of line with the market. Specialised units are assigned to combat this problem and monitor fraud activities. They also take legal actions against the perpetrators. Officials have stressed that the best defence is public awareness.
Reporting suspected fraud is encouraged through the official channels. This includes the eCrime Platform or calling 901 if you need non-emergency help. Consumers are also advised to check the trade licenses thoroughly, as unusually low rates of insurance can be a sign that fraud is possible.
