Mis-selling of Life Insurance by telecallers in COVID-19 times

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We are amidst a situation of financial crunch, where most of us have lost our jobs, suffered business losses or received salary cuts. If you are looking for options to liquidate your investments to sail through these difficult times, trust me, you are not the only one!

This global pandemic has upended all our lives and it is understandable that all of us are looking for options to safeguard ourselves financially! And just when you are thinking about how to pay your premium for life insurance policies, you are likely to receive a call from a tellecaller offering to liquidate your funds from your existing policy. Now while this may seem like angel in disguise but here’s our warning… Do not fall for it!

Insurance Samadhan

It’s a trap!

Yes, you read that right. Here’s what they will do –

As soon as you show interest in getting your money back from your existing policy, they will suggest you to replace it with a new policy and further assist that they will port the money from the existing policy to this new policy along with a bonus of 3-4 lacs. The new policy is sold either to convince you to get an agent code or as a GST expense, depending on how you are more likely to be trapped in the offer.

An online link will be sent to you to convince you that your money is going to some insurance company and not to any individual bank account, so then you agree to pay online. You share the OTP and your proposal form is filled automatically. You share the Aadhar card and your ITRs on WhatsApp trusting the caller will get you the money.

Also Read:  Underwriting to protect the interest of Policyholders

The trap is well laid down. The company calls to verify if the sales is genuine and the caller guides you not to disclose about portability as either then they cannot issue the policy or they will deduct the commission, so you agree and say Yes to the call.

You relax and receive the new policy pack on mail which let’s assume you forget to study and check. The caller convinces you that you will get the money back in about 30-45 days. By that time, you lose the Freelook period of 15 days and right after 30-45 days, the caller stops taking your calls.

You have now lost your money to this fraud policy and don’t know what to do?

As a natural response, you will write to the Insurance Company and they will give you a standard response that the freelook period is over!!

Please note that there is no portability of a Life Insurance Policy. You cannot withdraw all your money from your policy, however, there is a provision of loan or surrender if you have paid minimum three premiums.


However, if you have experienced such fraud, we are here to help! We would be happy to assist you!

At InsuranceSamadhan.com, we have helped resolve over 12,600 customer grievance cases in the past related to Life Insurance, Health Insurance, General Insurance, ULIPs and other financial products.

You can also

Visit our website: insurancesamadhan.com

Call us on +91 9513631312

WhatsApp:  9910998252

Mail us at corporate@insurancesamadhan.com

Click here to register your case with us

Insurance Samadhan

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