NEW DELHI: The Insurance Regulatory and Development Authority of India (IRDAI) has issued an alaram to the citizen against dealing with a Bangalore-based entity called 'Digital National Motor Insurance' and cautioned people against rampant fraud and cheating by this fake entity.

In it's warning to the public IRDAI has said, “It has been brought to the notice of IRDAI that an entity by the name of “DIGITAL NATIONAL MOTOR INSURANCE” operating from #DNMI co. ltd. Portal Office, Krishna Raja Puram, Insurance Info Building, Devasandra, Bangalore – 560036 having website https://dnmins.wixsite.com/dnmins and email id digitalpolicyservices@gmail.com has been selling insurance policies, although it has not been licensed or granted registration by the Authority to sell insurance policy of any kind.”

“The Authority cautions the Public not to make any transaction related to insurance business with M/s DIGITAL NATIONAL MOTOR INSURANCE, and hereby urges the public to remain alert and not to fall prey to fraud and cheating indulged in by the above said entity,” it added.

IRDAI is an autonomous, statutory body which is tasked with regulating and promoting the insurance and re-insurance industries in India and only those companies who are approved by it are legally allowed to carry on the business of insurance in the country. The agency's headquarters are in Hyderabad, Telangana, where it moved from Delhi in 2001.

While life insurance is the umbrella term for all insurance that has to do with the life and death of a person, or with funeral provision, non-life insurance policies focus on the protection of material and financial things in daily life, such as homes, vehicles, other property and financial losses, etc.

IRDAI has approved 24 life insurance companies and 34 non-life insurers who can carry on business in India. Only one reinsurance company, General Insurance Corporation of India has been recognized by IRDAI as of date.