Insurance related fraud is a problem that is rearing its head in India and the number of instances is only going up regularly. The commonest way of deceiving people is when scamsters pretend to be representatives from the IRDA. These people usually masquerade as representatives of the IRDA (Insurance Regulatory & Development Authority). Existing life insurance customers are called by these fraudsters and told that they can get an IRDA bonus for their policies but have to buy a new policy in order to get this bonus after a few months.
This is totally fraudulent. There are no such bonuses given by IRDA and it is not engaged in selling insurance policies or other financial schemes. In case you get these calls, immediately file a police complaint while providing all details of the phone call you received. Do not have blind faith in your insurance agent. Always conduct an extensive background verification, particularly of his/her unique code. This is given by the IRDAI for every agent/broker who is authorized. Life insurance plans are never recommended to customers by the IRDAI and switching between plans is something that is avoidable.
Always have a copy of personal identification cards and documents of your insurance agent along with the number, contact number and address along with all necessary policy papers. Do not leave vital policy documents in the hands of your insurance agent. Always make sure that insurance premium payments are made via demand draft, cheque or online payments. Cheques should never be made out in the name of the insurance agent and do not pay any premiums in cash. You should directly issue the cheque in the name of the insurance company.