Do Not Fall into the Trap of Insurance Scam

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A number of cases are reported where policyholders receive fictitious calls notifying them that their survival benefit or maturity proceeds are due (under their existing policy). They also inform that it is mandatory to invest in a new insurance policy in order to receive the amounts which are due. Never fall into the trap of insurance scam.

IRDA Cautions the policyholders against such spurious calls and fictitious offers. IRDA runs various media campaigns where it educates the general public that IRDAI regulates the Industry and is not involved in any such calls.

Do Not Fall into the Trap of Insurance Scam

Read how Abhiraj Shrivastava was lured by the fictitious call and misled into buying an insurance policy:

Jeet: Good morning. Am I speaking with Mr. Abhiraj Shrivastava?
Abhiraj: Yes
Jeet: I am Jeet from IRDAI. You have a life insurance policy from XYZ insurance company. Am I right?
Abhiraj: Yes
Jeet: Sir, I called you to inform you that your survival benefit is due. You can avail your survival benefit.
Abhiraj: Ok. What do I need to do?
Jeet: Sir, you don’t need to worry. I will ask someone from XYZ insurance company to contact you. He will help you to get the benefits.

(Later Rakesh from XYZ company calls Abhiraj)

Rakesh: Good evening sir. I am Rakesh from XYZ insurance company. You must have received a call from IRDAI.
Abhiraj: Yes.
Rakesh: Then, have you purchased a new endowment policy from us?
Abhiraj: A new endowment policy? No, I have not purchased any new policy.
Rakesh: Sir to receive the survival benefit, you need to buy a new endowment policy. The money from survival benefit will be credited to the new policy.
Abhiraj: But, why?
Rakesh: Sir, to receive the amount, it is mandatory to invest in a new endowment policy. It is our company’s policy. You need to understand that.
Abhiraj: But, I don’t want to buy another one.
Rakesh: Sir, then you won’t be able to get the benefit.
Abhiraj: How can this be possible? I want to talk to your senior.
Rakesh: Ok sir. Hold on. I will inform Mr. Raghu, my senior.
Abhiraj: Ok.

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(After 5 minutes)

Raghu: Hello, I am Raghu, Jeet’s senior. How may I help you?
Abhiraj: Raghu ji, your employee informed me that my survival benefit is due.
Raghu: Yes sir. Your survival benefit is due and to receive the amount, you have to buy a new policy.
Abhiraj: But I don’t want to buy a new one. There must be an option.
Raghu: No sir. You can only receive the benefit after you buy a new policy. And I believe that it would be a win-win situation for you. You will get the survival benefit from the existing policy and after buying a new policy, you and your family will be financially secured again.
Abhiraj: But…I have to pay premium for the new policy too…huh!…what will be the premium and sum assured of the new policy?
Raghu: Sir you will get an endowment policy. The sum assured will be Rs. 20 lakh and you need to pay a yearly premium of Rs. 1 lakh for 10 years. On maturity, you will also receive a bonus.
Abhiraj: Ok. I will buy the insurance policy. But when will I receive the survival benefit of the existing policy?
Raghu: Sir, after purchasing the new policy, you will receive it in a month. Sir, should I send you the link to make payments for the new policy?
Abhiraj: Right now? I mean, this fast?
Raghu: Sir, you only have 48 hours to avail the survival benefit.
Abhiraj: 48 hours? Then quickly send me the link.
Raghu: Sir, I have shared the link to make the payment for the policy.
Abhiraj: Wait a minute.… I have paid the amount.
Raghu: An OTP has been sent to your mobile number that will confirm your purchase. Sir, it would be great if you could share the OTP too. I’ll hold the call.
Abhiraj: The OTP is ****
Raghu: Thank you, sir. One more thing, you will receive a verification call from the company, just agree to whatever they say or else it will take time to release the survival benefit.
Abhiraj: Ok.

(For a month, Raghu and Rakesh contacted him regularly. However, after a month, Mr.Shrivastava did not receive the survival benefit. He contacted both Raghu and Rakesh but they tried to make excuses and then avoided his calls.)

Insurance Samadhan

Why were Raghu and Jeet avoiding his calls?

Raghu and Rakesh are not the insurance company’s officials. They were just impersonating them. Jeet (a fake IRDAI official) informed him that his survival benefit is due and Rakesh informed him that to avail the benefit, he needs to buy a new insurance policy. Abhiraj wanted to cross-check the offer. Therefore, to avoid suspicion, Rakesh introduced Raghu (his alliance) as his senior. Raghu made Abhiraj believe that the information given by Jeet and Rakesh was true. He convinced him to accept the false promise and mis-sold an insurance policy. Also, Raghu informed him about the verification call from the insurance company and instructed him to agree to everything they would say.

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Both Raghu and Rakesh contacted him so as to gain the trust of Abhiraj. They tried to pass the free-look period so that policyholders do not apply for policy cancellation.

After the end of the free-look period, they both started to make excuses and later avoided his calls.

Here, Abhiraj became the victim of an insurance scam. He did not receive any survival benefit. Instead, an insurance policy was mis-sold to him which he never desired.


If you receive such a call, immediately lodge a complaint with the police and give all the details like details of the caller and the contact number by which he approached you.

If you have become prey to an insurance scam and an insurance policy is mis-sold to you, then immediately contact your insurance company. If you are unable to receive your money back and need him, then contact Insurance Samadhan.

Insurance Samadhan is a private platform that resolved 14,500+ complaints related to insurance. Insurance complaints include insurance fraud, mis-selling, claim rejection, delay in claim settlement, etc. Contact us to get samadhan for your insurance-related issues, we’ll be happy to help you.

Click on the below links to read some cases resolved by Insurance Samadhan:

Cashless claim rejection

Mis-selling in a life insurance policy

Dengue Claim Rejection

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Disclaimer: Insurance Samadhan is a Private Platform and has no connection with IRDA or any Government Body.

Insurance Samadhan

Shailesh Kumar


  1. In fact, these scammers are so good at what they do that they’ve been fooling even the most experienced people. They’re not just targeting newbies either – they’ll go after anyone interested in insurance. Thanks for this post & easily understandable by adding to this conversation.

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