Irda warns customers against fraud calls

Some policyholders have received calls from people claiming to be from Irda, offering lucrative incentives

The Insurance Regulatory and Development Authority (Irda) has issued a series of advertisements to inform customers that the regulator does not announce bonuses for policyholders. Insurance companies have also been told to include these warnings in all their current and future advertisements.

“Irda hereby urges the public to remain alert and not to fall prey to frauds or scams perpetrated by miscreants who impersonate to be employees / officers of Irda or other insurance companies,” said the regulator.

According to a senior Irda official, several policyholders had complained that some individuals claiming to be Irda employees had contacted them offering policies with unviable returns including a “bonus” from Irda if they bought an insurance policy and wait for a few months.

“We wanted to make it clear to customers that Irda is neither involved in the sale of any kind of insurance nor announces any bonus for policyholders or insurers,” the official added.

Insurance companies have also been told to send across this message to all customers. Accordingly, all existing insurance advertisements have been modified to include a warning that Irda does not offer bonus and that customers should not surrender their existing policies or buy new policies falling prey to false promises.

Some fraudsters had advised customers to subscribe to a fresh policy after surrendering their existing policy and wait for a few months in order to get “additional benefits”. Customers were also told that their survival benefit, maturity proceeds or bonus was due and that they should buy a new insurance policy to be able to receive the amounts that are due.

Some of the callers told people to invest in insurance policies to avail gifts, promotional offers, interest free loans, among others.

Irda has asked people receiving such fraudulent calls to lodge a police complaint, giving the details of the caller, telephone number etc.