Insurance broking firm offers astronomical rewards under MLM scheme

Jeevan Suraksha, an insurance broking firm that has tied up with various leading insurance companies, is actively running an MLM scheme in general and life insurance products

Jeevan Suraksha Medicare Services Ltd, an insurance broker agency based in Gujarat, is yet another company engaging in chain-marketing insurance products—an activity discouraged by insurance regulator Insurance Regulatory and Development Authority (IRDA) and prohibited under the Insurance Act, 1938.

Section (41) of the Insurance Act, 1938, clearly states that “a licensed agent, whether individual or corporate, can’t appoint a sub-agent and pass on a commission to another person or entity. Any passing of commission by an agent is construed as rebating and is prohibited under the Act.”

Despite the law being in place, corporate and insurance brokers of various insurance companies are openly running such schemes.

Countries like Sri Lanka, Australia, Nepal and China have already abolished all kinds of chain-marketing schemes.

IFCO-TOKYO, ING Vysya Life Insurance and Shriram Life are some of the associate companies of Jeevan Suraksha. The company claims to have more than 17,000 agents working for it.

“Our company recruits insurance agents. After taking the agency license you can start selling general and life insurance policies. You don’t have to give any test. If you take our agency then you have to work for one month to accumulate 1,000 ‘Jeevan Value’ points. After that we recruit you,” said an associate from Jeevan Suraksha.

Moneylife had earlier reported on how insurance products are being mis-sold by corporate agents under chain-marketing models. (Read here:

According to recent media reports, a public interest litigation (PIL) was also filed in the Allahabad High Court against IRDA alleging mis-selling of Unit-Linked Insurance Plans (ULIPs) and insurance companies which encouraged the network marketing model.

To become an agent of Jeevan Suraksha, one has to buy a personal accident policy of Oriental Insurance Co Ltd by paying Rs450 premium for a three-year cover. The sum assured is Rs5 lakh.

The budding associate (agent) has to sell 25 personal accident policies of Oriental Insurance in order to become a ‘Jeevan Associate’ for which he gets 1,000 Jeevan Value (JV) points. This is the first stage to qualify for becoming a Jeevan Associate agent. The associate gets 20% commission on 10,000 JV points (1JV point=Rs10) at the entry level. The second stage is ‘Jeevan Earth’ in which the agent gets 5% commission on 20,000 JV points and a Parker pen as a reward.

The rewards for the successive stages are a mug set (Jeevan Moon), executive bag (Jeevan Venus), wrist watch (Jeevan Mars), laptop (Jeevan Pluto), Bajaj Pulsar bike (Jeevan Quasar), Maruti SX4 (Jeevan Star), Honda Civic (Jeevan Sun), to name just a few stages. If the associate reaches the last stage, i.e., ‘Jeevan Sun’ he can get a maximum of Rs51,000 as pension per month, as long as the business keeps coming in.

The company proclaims that the criteria for becoming a ‘Jeevan Associate’ is that an individual has to be 18 years of age, possess a PAN card, enjoy Indian citizenship and should be mentally sound.

Jeevan Suraksha deals in life insurance, general insurance and mutual funds. Bajaj Allianz Family Assure II, Future Saral Anand, LIC Jeevan Saral, Met Growth Super, Nagrik Suraksha Policy and Mediclaim Floater 180/365 are some of the insurance policies on offer.

Email queries sent to the concerned companies and Jeevan Suraksha remained unanswered till the time of writing this report.

When asked about what training would be provided for peddling insurance products, the co-ordinator said that all our doubts “will be cleared” in associate meetings held across Mumbai. These meetings actually train you on how to sell insurance products and convince prospects by luring them with rewards.

Moneylife has been repeatedly bringing such instances to IRDA’s notice but the authorities seem to be turning a blind eye to this issue.




5 years ago



5 years ago

No.1 galaxy career program plan


6 years ago

we want nagrik suraksha policy.


6 years ago

Dear Sir,

I read your article regarding MLM schemes.I would like to draw your attention regarding the MLM. In Chennai there is one company called as RMP LTD. RMP stand for the Resource for Money & Power.Now if you see their web-site , they are claiming that they received the FICCI certificate.Even after seeing their products,those are very costly.They are just cheating the poor people on the MLM basis. It is known that in many countries network marketing activities are completely banned.It is unfortunate that in our county the respective bodies are sleeping & do not pay attention to this. I would like you to take this matter with the respective authorities & save the publice from fooling.


(Amit Naik)

dillip swain

6 years ago

Dear M.L. u will write & inform to IRDA/GOVT.GOOD.IN a court a petitioner get only dates,like that in financial industry u will write against odds.IRDA /GOVT/buyer/investor will not listen.Everybody wants money,by providing licence,by taxing or by selling. IN chain system 1.AMWAY ,Hero no network insurance.There is no ethics.Where MRS.of Er/Dr/Adm off/Adv/police/poltician are insurance agent without IRDA license.

Under-recoveries of oil marketing firms at Rs1.1 lakh crore

The government is examining a viable and sustainable system of pricing of petroleum products and is addressing the issues relating to under-recoveries of State-run oil majors

Annual under-recoveries of State-run oil marketing companies (OMCs) have been estimated at Rs1.1 lakh crore, the government told the Lok Sabha today, reports PTI.

“The annual under-recoveries of the public-sector oil OMCs on sale of four sensitive petroleum products —petrol, diesel, PDS kerosene and domestic LPG—have been estimated to be around Rs1,10,000 crore,” minister of state for petroleum Jitin Prasada said during Question Hour.

The under-recoveries have been calculated assuming an average crude oil price at $85 per barrel and at a rupee-dollar exchange rate of Rs45 per dollar for the year 2010-2011, he said.

Mr Prasada said that the government has recently constituted an Empowered Group of Ministers to consider issues relating to the under-recoveries of the OMCs in the light of the recommendations of the Kirit Parikh Committee report.

The committee was set up to suggest a viable and sustainable system of pricing of petroleum products and address the issues relating to under-recoveries of the OMCs.

Mr Prasada said that with regard to pricing of petroleum products it has been the endeavour of the government to ensure that the least burden is put on consumers.

He pointed out that a subsidy of Rs300 per cylinder has been extended by the government for domestic consumers.

Replying to another question, Mr Prasada said that 26 allocations have already been made for coal bed methane while eight others were in the pipeline.

He said two million metric standard cubic meters per day (scmd) have been allocated for small and medium enterprises from the KG-D6 basin.

The allocation has been made on fallback basis to city gas distribution entities for supply to their industrial and commercial customers whose total consumption of natural gas does not exceed 50,000 scmd.


Exports fall 4.7% in FY'10; March sees 54% jump

The government has set an export target of $200 billion for the fiscal 2010-11 and is confident of exceeding it

India's exports in 2009-10 fell 4.7% to $176.5 billion, as a late revival in demand failed to fill the vacuum created in the first half, reports PTI.

The country's exports fell for 13 months in a row, starting October 2008, due to the global slump in demand. Exports turned positive for the first time since the slowdown in November 2009.

The value of India’s outward shipments in 2008-09 stood at $185.3 billion.

"Some sectors continue to hurt badly like engineering, which declined by 21%, electronic goods, handicrafts, and carpets," commerce and industry minister Anand Sharma said.

As regards the performance in March, exports grew 54% to $19.9 billion. March was the fifth straight month of growth.

Mr Sharma said the export target for 2010-11 will be $200 billion. "We have a modest target of $200 billion of merchandise exports in 2010-11. We are confident of achieving the target and hopefully exceeding it,” he said.


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