Introduction
“We’ve found unclaimed money in your lapsed insurance policy. To claim it, we just need your bank details…”
If you’ve ever received a call like this, you’re being targeted by one of the most common insurance scams in India today. We have seen many people who have fallen victim to these fraud attempts, and we want to help you protect yourself before it’s too late.
Understanding the Lapsed Policy Scam
The “unclaimed money in lapsed policy” scam works by exploiting a simple truth: many people do have old insurance policies they’ve forgotten about or stopped paying premiums on. Scammers use this reality to create a convincing scenario that plays on both hope and fear. The hope of receiving unexpected money and the fear of missing out on what’s rightfully yours.
These fraudsters are clever. They often have just enough personal information about you to sound legitimate, making their claims of the lapsed policy refund seem credible and trustworthy.
Why These Scams Are So Effective
The effectiveness of these scams comes down to a few key factors:
1. They Target a Common Situation
Lapsed policies are extremely common. Many people have purchased insurance at some point and later stopped paying premiums for various reasons. This creates a large pool of potential victims who might believe the scammer’s story.
2. They Create Urgency
“This money will be surrendered to the government if not claimed within 24 hours” is a typical pressure tactic. This urgency prevents you from taking time to verify the caller’s claims.
3. They Sound Official
Scammers often pose as officials from legitimate organisations like the IRDA (Insurance Regulatory and Development Authority), major insurance companies, or government agencies. They may even use spoofed phone numbers that appear to come from official sources.
4. They Know Basic Information About You
Perhaps the most concerning aspect is that these callers often have some accurate information about you- your name, that you once held a policy with a particular company, or other details that make their story seem plausible.
Red Flags to Watch For
Here are key warning signs that the call about your “lapsed policy refunds” is actually a scam:
1. Requests for Upfront Payments
If the caller asks you to pay any amount, whether as a “processing fee,” “GST,” “release charges,” or “documentation costs”, it is almost certainly a scam. Legitimate insurance claims don’t require upfront payments from you.
2. Requests for Sensitive Financial Information
Be extremely cautious if the caller asks for your bank account details, credit card numbers, online banking credentials, or OTPs (One-Time Passwords). Real insurance companies already have secure channels for transferring funds and won’t ask for this information over the phone.
3. Pressure Tactics and Urgency
Statements like “this offer expires today” or “the funds will be forfeited if not claimed immediately” are designed to rush you into making poor decisions. Legitimate funds in lapsed policies don’t disappear overnight.
4. Reluctance to Provide Verifiable Credentials
Ask the caller for their full name, employee ID, branch location, and official contact number. Scammers will either provide fake information or become evasive when pressed for these details.
5. Unsolicited Calls About Policies You Don’t Remember
While it’s possible to forget about an old policy, be extra cautious about claims regarding policies you have no recollection of purchasing. Ask for specific policy details and verify them independently.
How to Protect Yourself
1. Never Make Immediate Decisions
Tell the caller you need time to verify their information. A legitimate representative will understand and respect this boundary.
2. Don’t Share Financial Details Over Phone
No matter how convincing the caller sounds, never share bank account numbers, card details, PINs, or OTPs during an unsolicited call.
3. Verify Independently
If the caller claims to be from a specific insurance company, hang up and call that company’s official customer service number (look it up yourself online or from your policy documents). Ask them to verify if there’s truly any unclaimed money in your name.
4. Check IRDA’s Website
The Insurance Regulatory and Development Authority of India maintains information about unclaimed amounts. Their official website is the right place to verify such policy lapse claims rather than trusting a random caller.
5. Report Suspicious Calls
If you receive suspicious calls, report them to the local cyber crime cell or the insurance company being impersonated. This helps authorities track and stop these scammers.
If You’ve Already Been Scammed
If you’ve already shared information or transferred money to such callers, take these immediate steps:
1. Contact your bank immediately to flag the transaction and potentially stop the payment
2. File a complaint with the cyber crime cell in your area
3. Report the incident to the insurance company the scammer claimed to represent
4. Document all details of the communication for future reference
How We Can Help
At Insurance Samadhan, we specialise in resolving insurance-related disputes. If you’ve been victimised by a policy lapse scam or are unsure about a call you’ve received, we can:
1. Guide you through each step of the verification and complaint process
2. Help you determine if you actually have legitimate unclaimed funds
3. Assist in drafting proper communications to regulatory authorities
4. Support you in recovering lost funds when possible
5. Help you check if you have any genuine unclaimed insurance money
Our team’s extensive experience in the insurance industry gives us unique insights into how these scams work and how to combat them effectively.
Stay Vigilant
Remember that legitimate insurance companies have established procedures for handling unclaimed funds, and these rarely involve unsolicited phone calls demanding immediate action or payment.
When it comes to your financial security, skepticism is a virtue. Take your time, verify independently, and never let urgency cloud your judgment.
If you’re concerned about a call you’ve received or need help determining if you have legitimate unclaimed insurance funds, contact us at 95136-31312. We’re committed to protecting your financial wellbeing and fighting against insurance fraud in all its forms.
Click here to register your complaint with Insurance Samadhan
Visit our website: insurancesamadhan.com
Mail us at corporate@insurancesamadhan.com
