Insurance Samadhan is regularly getting calls of the customers who have been sold insurance but by fraud. We would like to list down the types of major frauds that customers report to us:

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Types of Major Life Insurance Frauds in India

  1. Looking for Loan: You search online for loan and share your number on few websites. You get a call from fraudster posing as bank or financial house employee offering loan. The fraudster offers loan easily and at low interest rates. He convinces you to buy policy and instead of loan EMI pay the premiums. The proceeds of the policy will go for repayment of the loan. For eg you need a loan of 5 lacs for 10 years, they will offer a policy with premium of Rs 50000 for 10 years. This looks easy and affordable. You get into the trap and fill all the forms to buy the policy. They also convince you not to talk about loan in the policy else company will charge commission. So, now you have signed all documents and the verification call is guided, policy gets issued and the now you wait for loan amount to hit the bank account. After 14-15 days when you call the fraudsters and he tell you that the file is stuck as GST needs to be paid. They will sell another policy and if you don’t buy, they will say they are trying to get file cleared. The Freelook period gets over in this follow up for loan and now you have an Insurance Policy. We have seen sometimes they sell 5-6 policies of different companies in lieu of getting the loan. The money is gone!
  2. Bonus on old policy: You receive a call from IGMS/IRDA claiming that there is bonus in one of your old lapsed policy. You remember buying a policy few years back which you did not continue. So, you are convinced that there can be bonus on that policy. They tell you to claim the bonus and the lost money, you need to buy a new policy to take a code and then once the money is transferred to the new policy, you can cancel the same and get your money. Sounds very convincing! This is a trap to get you a new policy as IRDA/ IGMS never calls any customer. The Insurance companies always try to stop these frauds and they do a verification call. They ask you about such offers but the caller told you that if you disclose the insurance company will deduct commission and you believe them. You signed all documents and you agreed to the verification call. The caller asks you to wait for 15-30 days for transfer to be effective and you lose your freelook period. Now you have an Insurance Policy and you feel helpless.
  3. Free Gold Coin: You get a call that Insurance company is offering a special scheme on the Insurance policy. They will offer you Gold coin once you get the policy document. You sign all documents and attend the verification call. Your freelook period is lost in waiting for Gold coin and now instead of gold coin you have an insurance policy.
  4. Free Health Insurance: You are told that you are selected for a free health Insurance with your life Insurance policy. You will be given voucher equal to the premium you have paid and you can use it for your medicines and OPD consultations. Beside this your health insurance policy will cover you for any hospitalisation. You sign the documents, verified call is again guided as you care for your commission.

Also Read: How to report Insurance Fraud?

In all these frauds the root cause is that as customer we surrender to the additional money being offered or benefits. While IRDA and Insurance company are doing all checks to stop such frauds. They call you and explain the product. Most companies are asking if some other benefit besides what has been explained in the call is being offered to check, but we conveniently ignore it and fall in trap of the fraudsters.

Get Resolutions for Insurance Complaints

Insurance Samadhan is trying to create awareness about insurance as we feel this is the most important protection for your family. In case you have suffered any fraud, we shall be happy to assist you in filing your complaints at the various forums and try to get you the best resolution.

To reach us at InsuranceSamadhan.com –

Call us at – 844 844 0626

Mail us at – corporate@insurancesamadhan.com

Register your insurance complaint here