Use the tcpdump utility to view the network packets being transfered between the hosts (or networks) and verify that they are encrypted via IPsec. The packet should include an AH header and should be shown as ESP packets. ESP means it is encrypted. For example:
17:13:20.617872 pinky.example.com > ijin.example.com: \ AH(spi=0x0aaa749f,seq=0x335): ESP(spi=0x0ec0441e,seq=0x335) (DF) |