Beware of Fraudulent IRDAI Calls: A Cautionary Tale

The Insurance Regulatory and Development Authority of India (IRDAI) has been established to protect the interests of policyholders, regulate and promote the insurance industry in India. However, there have been cases of fraudsters impersonating employees of IRDAI and engaging in fraudulent activities. One such case of fraudulent activity was reported by a policyholder, who received a call from a person claiming to be an employee of the IRDAI funds release department.

The policyholder received a call in July 2020 from a person named Santosh Awasthi, who introduced himself as an employee of the IRDAI funds release department and offered to help the policyholder save money by canceling their existing policy and refunding the entire amount to them. The policyholder was told to purchase a new policy from India First Life Insurance, and they made a payment of Rs. 59,983 for the premium.

A few days later, Mr. Awasthi called again and informed the policyholder that due to a technical glitch, a section needed to be applied to cancel the old policies and refund the money. The policyholder was asked to purchase another policy from India First Life Insurance for Rs. 58,794. Subsequently, the policyholder was asked to buy another policy from Bharti AXA Life Insurance for Rs. 60,000 to rectify an incorrect PAN number.

This fraudulent activity continued with the policyholder being asked to purchase one more policy from Edelweiss Tokio Life Insurance for Rs. 70,000 to facilitate the release of funds. The policyholder was then told to purchase another policy from Edelweiss Tokyo Life Insurance for Rs. 68,000 to save on GST, which would also be cancelled and refunded back to them.

The policyholder started following up with Mr. Awasthi and Mamta Gupta, who claimed to be an associate of the IRDAI funds release department, for the release of their funds. However, the release of funds was continuously postponed with excuses, and the policyholder was asked to deposit an additional Rs. 10,200 to complete the process of funds release.

After rigorous follow-up, Mr. Awasthi blocked the policyholder's number, and they sent emails to IRDAI funds release department and other offices, but none of them responded. The policyholder received the same template replies, and their complaints were rejected without any investigation.

This case of fraudulent activity highlights the importance of being cautious while sharing personal and financial information with strangers. The policyholder in this case fell victim to a scam that was carried out in the name of IRDAI, and they suffered a significant financial loss.

IRDAI should take strict action against such fraudulent activities and create awareness among the public to protect them from such scams. It is essential to verify the credentials of individuals claiming to be employees of IRDAI before sharing any personal or financial information. The public should be encouraged to report any suspicious activity to IRDAI and the authorities to prevent such fraudulent activities from occurring in the future.

Disclaimer: The blog is based on the written complaint, supported by evidence submitted by the victim to the insurers. 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.