Scammed: The Story of an IT Professional's Tragic Encounter with an Insurance Scam

 

Scammed: The Story of an IT Professional's Tragic Encounter with an Insurance Scam

Insurance policies are crucial investments that can help individuals protect their future and their loved ones. However, it is important to be careful while buying an insurance policy to ensure that the policy provides the benefits that were promised at the time of sale. Unfortunately, there are instances where people are misled by agents who promise lucrative returns without explaining the details of the policy. In this blog, we will discuss a case where a person was misled while buying a life insurance policy and what steps can be taken to avoid such situations.

Mr. X, a resident of Maharashtra, India, and a seasoned IT professional with over 15 years of experience in the field. Mr. X is well-versed in the nuances of the digital world, but even his technical know-how could not save him from being a victim of mis-selling in the insurance industry. The Victim received a call from an agent of IIFL Insurance Broker (IIFL), who promised him a life insurance policy with a guaranteed return of over Rs. 26 lakhs against a premium deposit of Rs. 12 lakhs. However, what followed was a chain of events that exposed the fraudulent practices in the insurance sector and left Mr. X struggling to get justice.

In the month of October 2021, the victim received a call from Mr. Tambe, an employee of IIFL Insurance Broker, who promised huge returns on a life insurance policy from Bharti AXA Life Insurance. The author was promised a guaranteed return of ₹ 26,59,244 against a premium deposit of 12,00,000 in the 12th year and 32,56,032 at the end of the 20th year. The victim expressed that he was short of funds and could not deposit such a huge premium at once. Mr. Tambe advised him to take a loan and invest the same in Bharti AXA policy, assuring that the company will reimburse the interest charged by the bank.

The victim was then asked to provide their KYC documents, including a copy of their Aadhaar card, to Mr. Mishra from Bharti AXA Life Insurance for the purpose of investing in Bharti AXA policy. The victim provided all the necessary documents, but the policy was issued by Bharti AXA without getting their signature on any proposal form or KYC documents/supporting documents.

The policy features explained by Mr. Tambe from IIFL were completely different from what was explained during the welcome call from the head office of Bharti AXA Life. The victim registered his protest during the welcome call, but the caller refused to help and refused to register any complaint, advising the victim to contact the agent.

The victim tried to contact IIFL Insurance broker on the given number printed on the policy document, but they refused to offer any help, asking them to contact Bharti AXA instead. The victim contacted Mr. Tambe and asked him to explain the difference between policy benefits as explained by him and as explained during Bharti AXA Life, asking him to cancel the policy immediately as the same was mis-sold to him and refund the premium amount. However, Mr. Tambe refused to help in the cancellation of the policy and stopped responding to their calls.

Following the complaint of mis-selling made by the victim, the IIFL Insurance Broker eventually agreed to forward the cancellation request to Bharti AXA Life Insurance. However, despite receiving the cancellation request from IIFL, the insurer refused to cancel the policy and refund the premium. The victim was left with no option but to pursue legal action against Bharti AXA Life Insurance and the insurance broker IIFL.

This situation highlights the importance of being careful while buying insurance policies. It is important to read the policy document carefully and understand the policy features before investing. One should never be swayed by promises of huge returns without proper explanation of the policy features. Additionally, it is important to verify the credentials of the insurance agent and the insurance company before investing.

If one feels that they have been misled or the policy has been mis-sold, they should immediately contact the insurance company and the agent and ask for clarification. If the issue is not resolved, they can file a complaint with the Insurance Regulatory and Development Authority of India (IRDAI) or the Ombudsman for Insurance in their respective state. 

In conclusion, investing in insurance policies is an important decision, and one should take the necessary steps to ensure that they are investing in the right policy. Careful research and due diligence can help individuals avoid situations like the one described in the letter and ensure that they receive the benefits that were promised at the time of the sale.

Disclaimer: The blog is based on the written complaint, supported by evidence submitted by the victim to the insurer. There is no intention to defame anyone named in this blog. The insurers are also victims in such cases, and we highlight these cases just to make others aware of prevalent frauds.