Insurance
Reliance Life refunds Rs60,000 in a suspicious transaction: Another Moneylife success
Dr Verma had purchased a Reliance Life plan with the lure of an interest-free loan. After running around without any success for six months to get the promised loan and then to get the policy cancelled, Dr Verma fortunately got justice within two hours of Moneylife’s intervention 
 
Many customers are receiving fraudulent calls offering them an interest-free loan of Rs10 lakh from Reliance Capital when you buy a Reliance Life policy of Rs1 lakh premium. When Moneylife raised this issue, Reliance Life replied to Moneylife stating, “The calls were made by spurious callers, it is a menace faced by the industry, and it is not part of any mis-selling. They even added that the industry has sought help from the EOW and we, as Reliance, have also filed over 170 FIRs against these spurious callers.”
 
 
Reliance Life’s response to Moneylife points to an article in the Times of India which assures us:  “These complaints have not made much headway since there was no transaction.” Well, this is not entirely true. Moneylife Insurance Helpline has received one such case which was not only about nuisance calls of “interest-free loan”, but also an actual transaction of Reliance Life insurance policy purchase without getting any loan from Reliance Capital. Dr Sujay Verma (name changed) had a harrowing experience for the last six months. After running around to get the promised loan and making complaints to Reliance Life without getting any response from it for six months, Moneylife’s intervention took two hours to ensure justice for the hapless consumer. Dr Verma received an email from head–customer care of Reliance Life offering him a refund of the premium amount of Rs60,000 within three days. The refund was indeed given as it was promised.
 
Moneylife wrote to Reliance Life stating, “This policy is a good example that can be analysed. Apart from the dubious interest-free loan, there was an actual selling of the policy. Can you give us the details on how the offer got translated to policy sale? Dr Verma's email has details of people who made calls. The policy will have the information about who sold the policy.” There has been no response from Reliance Life till the time of writing this article.
 
Dr Verma had even made complaints to Insurance Regulatory and Development Authority (IRDA). Can IRDA not smell a dead rat? Its reaction should have been “Hey, wait a minute... what’s going on” instead of silently updating the status. IRDA forwards the grievances back to the insurance company which knows very well how to dodge the issue until there is a pressure from the media, insurance ombudsman or consumer court.
 
Dr Verma has also made false promises of “conversion of policy to a single-premium plan”. The truth is that Reliance Life Guaranteed Money Back Plan does not have a single premium payment option. 
 
Here is part of a long email from Dr Verma to Moneylife:
  
I have been tricked and duped by Reliance Life’s fraud advisors and personnel from the verification and loan department. They offered me availability of true 0% interest-free loan of Rs2.5 lakh–Rs10 lakh from Reliance Capital for buying “Guaranteed Money Back Plan” from Reliance Life Insurance. The company’s advisors even told me not to disclose this “Loan-offer” to other executives in Reliance to save my “15% agent-commission” for buying the policy directly from the company itself and it will be remitted to me along with the sanctioned loan amount. 
 
I trusted the ‘Reliance ADA Group’ and opted for a loan of Rs6,00,000 and therefore gave a premium cheque of Rs60,000. I was then provided a 7-digit “Loan-Pin: RLI3585” to only disclose to specific person for verifying and processing my loan amount. I was even given a due date of 13 December 2012 for the release of my loan amount.
 
But when I received my policy documents on 15th November, I immediately informed the company advisors about the blunders in my name spelling, photo, policy-term, sum assured and premium amount received. After repeated reminders for correction of errors/cancellation, my policy document was collected by the very same advisor of Reliance Life Insurance for the necessary corrections of the mistakes within the free-look period and told me that the corrected policy document will reach me in 10-15 days and that I will be provided a free-look period of another 15 days after the receipt of my corrected policy document.
 
From 10 December 2012 onwards all these advisors started showing their true colours. Neither my policy bond nor loan amount was given to me. Some misprinting errors were again given the reasons for the delay in delivery of my rectified policy bond and the loan amount delay was associated with it. The issue date of loan amount was first postponed to 20/12/2012. Then I was told that the loan amount is not electronically transferred, but a cheque amount of Rs6,09,000 has been couriered to me on 20th December.
 
At last when my patience and endurance ultimately crossed all its tolerance and threshold limits, then I did registered a complaint at the customer care and the local Reliance head office on 28th December. I had even furnished all the proofs for the fraudulent claims made by the AB-Capital in my support to the head-customer care and grievance officers. But even after passage of four months of registering my complaint and several reminders as well as escalations, I did not even get one suitable official reply/refund from the company. IRDA status of complaint is silently updated and on my calls and visits I have been told by their executives to “be denied my cancellation and refund request because my free-look period is over and my identity proofs are correct” without giving any official reply.
 
On 28 December 2012, I was offered to convert my plan to a single-premium plan unofficially. I insisted on a written offer made through the company’s official address/email to verify its genuineness. I have not been contacted from the company since then.
 
They are not redressing the grievances of Reliance Life’s premier customers. They have given a clean chit to their agencies though I am still receiving calls providing 0% loans from Reliance Life and the innocent customers are crucified for showing their trust in the Reliance ADA group. Despite of my claims that my policy document was collected by their advisor within the free-look period my cancellation and refund request/conversion of my policy to a single-premium plan request are not being entertained even after several reminders to the grievance officers.
 
 
If you have an insurance-related problem, please write to Moneylife Foundation. Click here to know more
 
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COMMENTS

Samsul J Akhtar

3 years ago

Reliance Life Insurance Company Limited Customer Executive was offer me Rs 2400000/ Loan with zero Interested against Policy mortgage of Reliaance Life Insurance Company Limited Super Money Back Plan.
I was agree their terms and condition and paid Rs 59500/ amount and was purchase the said policy .


After then Reliance Life Insurance Company Limited send me Policy Kit . The Policy Number is 1. 51579478 and File no D7415731,


In this 51579478 and File no D7415731 the Kit I was received and found that the Customer Signature column it is not My Original Signature. Someone from Reliance Life Insurance Company Limited has misuse My Duplicate Signature

I try to call several time to the Reliance Reliance customer care executive to cancel my policy but they are not responding to me.
Date: 03/07/2014 I Submit Application to cancel my LIC policy No 51579478 to Reliance Life Insurance Company Office at Goregaon East Office. But they deny to cancel my Policy.

Dated: 10/07/2014 received call message from Reliance Company the call and SMS was to pay now Rs 1371. as TDS Amount. the said amount they ask me to transfer to A/C no 4434000400006350 Name Pawan Kumar Sharma. Reliance Company Ask me to Pay the said not to inform to Police. But I didn't pay the amount to them.

Pankaj Randhir

3 years ago

Is Reliance offering 10-year interest-free loan for buying insurance?

I have been issued above policy by reliance agent making fraud with me by telling me to give me 0% Interest Free Loan. So, I have taken a Reliance Life Insurance Policy of amount 50000 INR. But now, I want to cancel my Policy and get my money back.
I got a call from Vinod Gupta (08588018164, 08800791905, 08467951529, 08447166159) stating that I am from reliance Life Insurance and asked about loan and I described my requirement, then he told me that you have to take a policy of reliance life for an amount of 5 Lakh so that you get a loan of same amount against your policy without interest (at 0%) but you have to pay an Premium of Rs 50000.00 every year and continuing for 10 years. I enquired that how you can give a loan without interest then he told that reliance life insurance gives this loan on behalf of our Maturity. And on this basis Reliance Life will get Maturity benefits after 15 years. At that time Reliance will get benefit, and you will not get any amount as Reliance will pay you 500000 in advances as loan.
He told me that after some time you will get a call from reliance life once your policy will be issued and don't tell those about the loan other wise 20% amount would be deducted and paid to that agent. So as per his instruction I sent first check to him for application of this policy. I sent him check of SBI and its
This check was on the name of Reliance life Insurance Co. Ltd. He told me to send him this check by courier on following Address.
Reliance Life Insurance Co. Ltd./ Money Care Value Card.
715, Vishal Tower, District Center,
Janak Puri, New Delhi -110058
Ph. No- 011-46621601/600
So, I paid a check of Rs 50,000.00 payable at New Delhi. After that he asked me for bank statement of mine and told me to send details on Email ID- [email protected]. After receiving this check they sent me Policy document.
My policy is certified by two persons as per my Policy assessment:
Jaspreet Kaur –IRDA License Adviser Code-:21798791,
Pooja Budeja- Sale Manager Code: 70097017
After this policy activation he also told me to take money care value card worth Rs. 25000. After asking by me, He gave reason that we have to create NOC for further Loan Procedure and hence you have to take this money care value card. And hence, I prepared DD of Rs. 25000 on the name of Money Care Value Card. I delivered it on the same address as per his instruction. The two more people named mainly Suresh Tyagi (07827349932) and Rajeev (08586962037),Rahul 07827297258, are also involved in this fraud. After some days I got a call from Suresh Tyagi, telling himself as Employee of Reliance Life Insurance-Finance Dept., for verification of loan. And he told me that you will get your loan amount in your account within 15 Days i.e. 5/5/2014. But on 4/5/2014, he told me that still your verification is not done properly so you will not get your loan amount. And so i told him as well Vinod Gupta to cancel my Policy.
As per the instruction of Vinod Gupta, I filled the cancelation form of money Care Value card. And he told me to deliver on the same address. So I sent him courier on 1/5/2014. And from that day his all numbers are not Reachable/Switched Off. After searching from internet I found that it could be a fraud Case. And my doubt is cleared by inquiring my nearest Reliance Life Insurance branch at O. P. Road, Vadodara. And it is confirmed to me that this is the fraud case. And Vinod Gupta cheated me by wrongly selling me this Guaranteed Money Back Plan.
Because Vinod Gupta gave me surety that you will get 0% interest free loan of Rs. 500000, once this policy will be activated, I took a risk of Rs. 50000. At that time this huge amount was not in my hand. I have to arrange this. And I took a personal loan of Rs. 50000 from Bajaj Finance Ltd with very high interest rate. I have to pay installment of Rs. 2787 per month to Bajaj Finance Ltd. And I am paying this interest rate from last 5 months. I also arranged Rs. 25000 from some of my friends and Relatives to pay as Money Care Value Card Voucher.
So, here I would hearty request you to confirm my policy cancelation application. As I have taken this policy only for getting the loan benefit. Now after confirmation of this fraud case I have to cancel this policy so that I can repay my Bajaj Finance loan. As of now I am not able to pay this much amount for years to continue with this policy and get benefit of it.

Regards
Pankaj

Pankaj Randhir

3 years ago

Is Reliance offering 10-year interest-free loan for buying insurance?

I have been issued above policy by reliance agent making fraud with me by telling me to give me 0% Interest Free Loan. So, I have taken a Reliance Life Insurance Policy of amount 50000 INR. But now, I want to cancel my Policy and get my money back.
I got a call from Vinod Gupta (08588018164, 08800791905, 08467951529, 08447166159) stating that I am from reliance Life Insurance and asked about loan and I described my requirement, then he told me that you have to take a policy of reliance life for an amount of 5 Lakh so that you get a loan of same amount against your policy without interest (at 0%) but you have to pay an Premium of Rs 50000.00 every year and continuing for 10 years. I enquired that how you can give a loan without interest then he told that reliance life insurance gives this loan on behalf of our Maturity. And on this basis Reliance Life will get Maturity benefits after 15 years. At that time Reliance will get benefit, and you will not get any amount as Reliance will pay you 500000 in advances as loan.
He told me that after some time you will get a call from reliance life once your policy will be issued and don't tell those about the loan other wise 20% amount would be deducted and paid to that agent. So as per his instruction I sent first check to him for application of this policy. I sent him check of SBI and its
This check was on the name of Reliance life Insurance Co. Ltd. He told me to send him this check by courier on following Address.
Reliance Life Insurance Co. Ltd./ Money Care Value Card.
715, Vishal Tower, District Center,
Janak Puri, New Delhi -110058
Ph. No- 011-46621601/600
So, I paid a check of Rs 50,000.00 payable at New Delhi. After that he asked me for bank statement of mine and told me to send details on Email ID- [email protected]. After receiving this check they sent me Policy document.
My policy is certified by two persons as per my Policy assessment:
Jaspreet Kaur –IRDA License Adviser Code-:21798791,
Pooja Budeja- Sale Manager Code: 70097017
After this policy activation he also told me to take money care value card worth Rs. 25000. After asking by me, He gave reason that we have to create NOC for further Loan Procedure and hence you have to take this money care value card. And hence, I prepared DD of Rs. 25000 on the name of Money Care Value Card. I delivered it on the same address as per his instruction. The two more people named mainly Suresh Tyagi (07827349932) and Rajeev (08586962037),Rahul 07827297258, are also involved in this fraud. After some days I got a call from Suresh Tyagi, telling himself as Employee of Reliance Life Insurance-Finance Dept., for verification of loan. And he told me that you will get your loan amount in your account within 15 Days i.e. 5/5/2014. But on 4/5/2014, he told me that still your verification is not done properly so you will not get your loan amount. And so i told him as well Vinod Gupta to cancel my Policy.
As per the instruction of Vinod Gupta, I filled the cancelation form of money Care Value card. And he told me to deliver on the same address. So I sent him courier on 1/5/2014. And from that day his all numbers are not Reachable/Switched Off. After searching from internet I found that it could be a fraud Case. And my doubt is cleared by inquiring my nearest Reliance Life Insurance branch at O. P. Road, Vadodara. And it is confirmed to me that this is the fraud case. And Vinod Gupta cheated me by wrongly selling me this Guaranteed Money Back Plan.
Because Vinod Gupta gave me surety that you will get 0% interest free loan of Rs. 500000, once this policy will be activated, I took a risk of Rs. 50000. At that time this huge amount was not in my hand. I have to arrange this. And I took a personal loan of Rs. 50000 from Bajaj Finance Ltd with very high interest rate. I have to pay installment of Rs. 2787 per month to Bajaj Finance Ltd. And I am paying this interest rate from last 5 months. I also arranged Rs. 25000 from some of my friends and Relatives to pay as Money Care Value Card Voucher.
So, here I would hearty request you to confirm my policy cancelation application. As I have taken this policy only for getting the loan benefit. Now after confirmation of this fraud case I have to cancel this policy so that I can repay my Bajaj Finance loan. As of now I am not able to pay this much amount for years to continue with this policy and get benefit of it.

Regards
Pankaj

Pankaj Randhir

3 years ago

Is Reliance offering 10-year interest-free loan for buying insurance?

I have been issued above policy by reliance agent making fraud with me by telling me to give me 0% Interest Free Loan. So, I have taken a Reliance Life Insurance Policy of amount 50000 INR. But now, I want to cancel my Policy and get my money back.
I got a call from Vinod Gupta (08588018164, 08800791905, 08467951529, 08447166159) stating that I am from reliance Life Insurance and asked about loan and I described my requirement, then he told me that you have to take a policy of reliance life for an amount of 5 Lakh so that you get a loan of same amount against your policy without interest (at 0%) but you have to pay an Premium of Rs 50000.00 every year and continuing for 10 years. I enquired that how you can give a loan without interest then he told that reliance life insurance gives this loan on behalf of our Maturity. And on this basis Reliance Life will get Maturity benefits after 15 years. At that time Reliance will get benefit, and you will not get any amount as Reliance will pay you 500000 in advances as loan.
He told me that after some time you will get a call from reliance life once your policy will be issued and don't tell those about the loan other wise 20% amount would be deducted and paid to that agent. So as per his instruction I sent first check to him for application of this policy. I sent him check of SBI and its
This check was on the name of Reliance life Insurance Co. Ltd. He told me to send him this check by courier on following Address.
Reliance Life Insurance Co. Ltd./ Money Care Value Card.
715, Vishal Tower, District Center,
Janak Puri, New Delhi -110058
Ph. No- 011-46621601/600
So, I paid a check of Rs 50,000.00 payable at New Delhi. After that he asked me for bank statement of mine and told me to send details on Email ID- [email protected]. After receiving this check they sent me Policy document.
My policy is certified by two persons as per my Policy assessment:
Jaspreet Kaur –IRDA License Adviser Code-:21798791,
Pooja Budeja- Sale Manager Code: 70097017
After this policy activation he also told me to take money care value card worth Rs. 25000. After asking by me, He gave reason that we have to create NOC for further Loan Procedure and hence you have to take this money care value card. And hence, I prepared DD of Rs. 25000 on the name of Money Care Value Card. I delivered it on the same address as per his instruction. The two more people named mainly Suresh Tyagi (07827349932) and Rajeev (08586962037),Rahul 07827297258, are also involved in this fraud. After some days I got a call from Suresh Tyagi, telling himself as Employee of Reliance Life Insurance-Finance Dept., for verification of loan. And he told me that you will get your loan amount in your account within 15 Days i.e. 5/5/2014. But on 4/5/2014, he told me that still your verification is not done properly so you will not get your loan amount. And so i told him as well Vinod Gupta to cancel my Policy.
As per the instruction of Vinod Gupta, I filled the cancelation form of money Care Value card. And he told me to deliver on the same address. So I sent him courier on 1/5/2014. And from that day his all numbers are not Reachable/Switched Off. After searching from internet I found that it could be a fraud Case. And my doubt is cleared by inquiring my nearest Reliance Life Insurance branch at O. P. Road, Vadodara. And it is confirmed to me that this is the fraud case. And Vinod Gupta cheated me by wrongly selling me this Guaranteed Money Back Plan.
Because Vinod Gupta gave me surety that you will get 0% interest free loan of Rs. 500000, once this policy will be activated, I took a risk of Rs. 50000. At that time this huge amount was not in my hand. I have to arrange this. And I took a personal loan of Rs. 50000 from Bajaj Finance Ltd with very high interest rate. I have to pay installment of Rs. 2787 per month to Bajaj Finance Ltd. And I am paying this interest rate from last 5 months. I also arranged Rs. 25000 from some of my friends and Relatives to pay as Money Care Value Card Voucher.
So, here I would hearty request you to confirm my policy cancelation application. As I have taken this policy only for getting the loan benefit. Now after confirmation of this fraud case I have to cancel this policy so that I can repay my Bajaj Finance loan. As of now I am not able to pay this much amount for years to continue with this policy and get benefit of it.

Regards
Pankaj

Pankaj Randhir

3 years ago

Is Reliance offering 10-year interest-free loan for buying insurance?

I have been issued above policy by reliance agent making fraud with me by telling me to give me 0% Interest Free Loan. So, I have taken a Reliance Life Insurance Policy of amount 50000 INR. But now, I want to cancel my Policy and get my money back.
I got a call from Vinod Gupta (08588018164, 08800791905, 08467951529, 08447166159) stating that I am from reliance Life Insurance and asked about loan and I described my requirement, then he told me that you have to take a policy of reliance life for an amount of 5 Lakh so that you get a loan of same amount against your policy without interest (at 0%) but you have to pay an Premium of Rs 50000.00 every year and continuing for 10 years. I enquired that how you can give a loan without interest then he told that reliance life insurance gives this loan on behalf of our Maturity. And on this basis Reliance Life will get Maturity benefits after 15 years. At that time Reliance will get benefit, and you will not get any amount as Reliance will pay you 500000 in advances as loan.
He told me that after some time you will get a call from reliance life once your policy will be issued and don't tell those about the loan other wise 20% amount would be deducted and paid to that agent. So as per his instruction I sent first check to him for application of this policy. I sent him check of SBI and its
This check was on the name of Reliance life Insurance Co. Ltd. He told me to send him this check by courier on following Address.
Reliance Life Insurance Co. Ltd./ Money Care Value Card.
715, Vishal Tower, District Center,
Janak Puri, New Delhi -110058
Ph. No- 011-46621601/600
So, I paid a check of Rs 50,000.00 payable at New Delhi. After that he asked me for bank statement of mine and told me to send details on Email ID- [email protected]. After receiving this check they sent me Policy document.
My policy is certified by two persons as per my Policy assessment:
Jaspreet Kaur –IRDA License Adviser Code-:21798791,
Pooja Budeja- Sale Manager Code: 70097017
After this policy activation he also told me to take money care value card worth Rs. 25000. After asking by me, He gave reason that we have to create NOC for further Loan Procedure and hence you have to take this money care value card. And hence, I prepared DD of Rs. 25000 on the name of Money Care Value Card. I delivered it on the same address as per his instruction. The two more people named mainly Suresh Tyagi (07827349932) and Rajeev (08586962037),Rahul 07827297258, are also involved in this fraud. After some days I got a call from Suresh Tyagi, telling himself as Employee of Reliance Life Insurance-Finance Dept., for verification of loan. And he told me that you will get your loan amount in your account within 15 Days i.e. 5/5/2014. But on 4/5/2014, he told me that still your verification is not done properly so you will not get your loan amount. And so i told him as well Vinod Gupta to cancel my Policy.
As per the instruction of Vinod Gupta, I filled the cancelation form of money Care Value card. And he told me to deliver on the same address. So I sent him courier on 1/5/2014. And from that day his all numbers are not Reachable/Switched Off. After searching from internet I found that it could be a fraud Case. And my doubt is cleared by inquiring my nearest Reliance Life Insurance branch at O. P. Road, Vadodara. And it is confirmed to me that this is the fraud case. And Vinod Gupta cheated me by wrongly selling me this Guaranteed Money Back Plan.
Because Vinod Gupta gave me surety that you will get 0% interest free loan of Rs. 500000, once this policy will be activated, I took a risk of Rs. 50000. At that time this huge amount was not in my hand. I have to arrange this. And I took a personal loan of Rs. 50000 from Bajaj Finance Ltd with very high interest rate. I have to pay installment of Rs. 2787 per month to Bajaj Finance Ltd. And I am paying this interest rate from last 5 months. I also arranged Rs. 25000 from some of my friends and Relatives to pay as Money Care Value Card Voucher.
So, here I would hearty request you to confirm my policy cancelation application. As I have taken this policy only for getting the loan benefit. Now after confirmation of this fraud case I have to cancel this policy so that I can repay my Bajaj Finance loan. As of now I am not able to pay this much amount for years to continue with this policy and get benefit of it.

Regards
Pankaj

R P SHIVKUMAR

3 years ago

The problem is that none of the main newspapers and major websites/news channels have shown much interest in reporting such cheating by major insurance companies/their agents and dubious methods employed by them. Maybe it is because of vested interests as some of the channels are owned by the major business groups and these groups also own stakes in major newspapers.
Despite the excellent efforts by the Moneylife item, such frauds continue with such boldness as the public awareness is low and IRDA turns a blind eye.

Pankaj Randhir

3 years ago

To
Money life
Subject: Request for help against fraud case of Reliance Life Insurance,
Policy No: 51461380,
Policy Application No: D7362076
Loan Code: RIL-2440525
I am Pankaj Randhir. i have been issued above policy by reliance agent making fraud with me by telling me to give me 0% Interest Free Loan. So, I have taken a Reliance Life Insurance Policy of amount 50000 INR.
In Detail:
I got a call from Mr. Vinod Gupta (08588018164, 08800791905, 08467951529, 08447166159) stating that I am from reliance Life Insurance and asked about loan and I described my requirement, then he told me that you have to take a policy of reliance life for an amount of 500000, so that you get a loan of same amount against your policy without interest (at 0%) but you have to pay an Premium of Rs 50000.00 every year and continuing for 10 years. I enquired that how you can give a loan without interest then he told that reliance life insurance gives this loan on behalf of our Maturity. And on this basis Reliance Life will get Maturity benefits after 15 years. At that time Reliance will get benefit, and you will not get any amount as Reliance will pay you 500000 in advances as loan.
He told me that after some time you will get a call from reliance life once your policy will be issued and don't tell those about the loan other wise 10% amount would be deducted and paid to that agent. So as per his instruction I sent first check to him for application of this policy. I sent him check of SBI and its detail is:
Check No: 1361011
Issued Date: 18/1/2014
This check was on the name of Reliance life Insurance Co. Ltd. He told me to send him this check by courier on following Address.
Reliance Life Insurance Co. Ltd.
715, Vishal Tower, District Center,
Janak Puri, New Delhi -110058
Ph. No- 011-46621601/600
So, I paid a check of Rs 50,000.00 payable at New Delhi. After that he asked me for bank statement of mine and told me to send details on Email ID- [email protected]. After receiving this check they sent me Policy document.
My policy is certified by Two persons as per my Policy assessment:
Jaspreet Kaur, IRDA Adviser Code-:21798791
Pooja Budeja, SM Code: 70097017
After this policy activation he also told me to take money care value card worth Rs. 25000. After asking by me, He gave reason that we have to create NOC for further Loan Procedure and hence you have to take this money care value card. And hence, I prepared DD of Rs. 25000 on the name of Money Care Value Card. I delivered it on the same address as per his instruction. The two more people named mainly Suresh Tyagi (07827349932) and Rajeev (08586962037), Mohit Gupta (08510010448) are also involved in this fraud. After some days I got a call from Suresh Tyagi, telling himself as Employee of Reliance Life Insurance-Finance Dept., for verification of loan. And he told me that you will get your loan amount in your account within 15 Days i.e. 5/5/2014. But on 4/5/2014, he told me that still your verification is not done properly so you will not get your loan amount. And so I told him as well Vinod Gupta to cancel my Policy.
As per the instruction of Vinod Gupta, I filled the cancelation form of money Care Value card. And he told me to deliver on the same address. So I sent him courier on 1/5/2014. And from that day his all numbers are not Reachable/Switched Off. After searching from internet I found that it could be a fraud Case. And my doubt is cleared by inquiring my nearest Reliance Life Insurance branch at O. P. Road, Vadodara. And it is confirmed to me that this is the fraud case. And Vinod Gupta cheated me by wrongly selling me this Guaranteed Money Back Plan.
Because Vinod Gupta gave me surety that you will get 0% interest free loan of Rs. 500000, once this policy will be activated, I took a risk of Rs. 50000. At that time this huge amount was not in my hand. I have to arrange this. And I took a personal loan of Rs. 50000 from Bajaj Finance Ltd with very high interest rate. I have to pay installment of Rs. 2787 per month to Bajaj Finance Ltd. And I am paying this interest rate from last 5 months. I also arranged Rs. 25000 from some of my friends and Relatives to pay as Money Care Value Card Voucher.
So, here I would hearty request you to help me to get my money back by anyhow of canceling application. As I have taken this policy only for getting the loan benefit. Now after confirmation of this fraud case I have to cancel this policy so that I can repay my Bajaj Finance loan. As of now I am not able to pay this much amount for years to continue with this policy and get benefit of it. As I am an employee of a Private Company and my salary is only Rs. 8000, I could not manage this much amount for years. So there is an only option with me to cancel this policy. So please cancel my Policy and Refund my amount of Rs. 50000.

So please guide me further and help me to get refund from Reliance Life Insurance. I have gone through article of one customer on your website and found some information same as my case. So thank you for, making this type of efforts for customers like me.

Thanks & Regards,
Pankaj Randhir
Mail ID: [email protected]

R P SHIVKUMAR

3 years ago

I AM VERY GRATEFUL TO MONEYLIFE TEAM AND MR JOSCEYN AND MR RAJ PRADHAN FOR THE SPEEDY DISPOSAL OF MY COMPLAINT. I HAVE RECIEVED REFUNDS OF 5 OF MY 6 POLICIES AND THE SIXTH IN THE NAME OF MY WIFE IS ALSO EXPECTED SOON. THANKS FOR THE SELFLESS WORK. IN LESS THAN A MONTH AFTER WRITING TO MONEYLIFE FOUNDATION, I RECIEVED MY MONEY BACK.
WE INVESTORS ARE OVERSELF RESPONSIBLE FOR GETTING CAUGHT IN SUCH SITUATIONS BY BELIEVING IN SUCH DUBIOUS STATEMENTS. I HAD HANDED OVER CASH OF RS 35000 TO THESE GUYS WHO HAD SOLD ME MY WIFE'S POLICY FOR WHICH I HAVE NOT GOT REFUND.
ANYWAYS, THANKS FOR THE GREAT WORK
REGARDS
R P SHIVKUMAR
9820213945
[email protected]

Yogesh

4 years ago

The case is very correct. I am also receiving such call from Reliance life. I was about to fall for one of such a call. Then I enquired at every setp. There will be 3-4 ppl at different stages who will call you for this 0% interest Loan policy. One of the Reliance Life guy correctely told me the truth and then I understood that it is not 0% interest loan. So I refused and he also agreed poliety.

sathyacumaran

4 years ago

Its not only the reliance insurance even the reliance securities cvheat their customer they donot give proper account when questioned they give an evasive reply as many underhand dealing is pervalnet in reliance securities as such reliance itself is fraudlent company sorry for this pungent remark we have no other words to use


sathya cumaran

Aspirants to banking licences hardly inspire confidence

The UPA government wants to issue banking licences “at any cost” before the elections. However, the RBI is not in a mood to ‘rush’. Last time only 2% of the applicants managed to get banking licences from the regulator. So who would be the lucky ones this time? The list has many dubious entities

From little known microfinance institutions (MFIs) to conglomerates like the Tatas, Birlas, Ambanis, Bajaj and Larsen & Toubro (L&T), many have jumped into the bandwagon for the “once in a lifetime” lottery of a banking licence. Missing in the list is Mukesh Ambani, the richest man in India at present. Interestingly, when the banking licences were issued last time, only two out of 100 applicants were successful in 2003. Over the last two decades, the Reserve Bank of India (RBI) licensed only 12 banks in the private sector, in two phases.

 

This time also, while the United Progressive Alliance (UPA) government wants to establish new banks before the general elections, the banking regulator does not seem to be in a hurry. The Reserve Bank of India (RBI) has already made it clear that banking being a highly leveraged business, licences shall be issued on a very selective basis only to those who conform to the requirements, have an impeccable track record and are likely to conform to the best international and domestic standards of customer service and efficiency.

 

Here are the applicants… Aditya Birla Nuvo, Bajaj Finserv, Bandhan Financial Services Pvt Ltd (Kolkata), Department of Posts, Edelweiss Financial Services, IDFC, IFCI, Indiabulls Housing Finance, India Infoline, INMACS Management Services (Gurgaon), Janalakshmi Financial Services Pvt Ltd (Bangalore), JM Financial, LIC Housing Finance, L&T Finance Holdings, Magma Fincorp (Kolkata), Muthoot Finance, Reliance Capital, Religare Enterprises, Shriram Capital, Smart Global Ventures Pvt Ltd (Noida), SREI Infrastructure Finance (Kolkata), Suryamani Financing Company (Kolkata), Tata Sons, Tourism Finance Corporation of India, UAE Exchange & Financial Services (Kochi) and Value Industries (Videocon from Aurangabad).

 

However, many among the 26 applicants would fail in the ‘reliability’ test, especially if RBI decides to look at their history. Take for example, Aditya Birla Nuvo (ABN). According to a report in Forbes, ABN paid over Rs100 crore to investors for the loss they suffered in Aditya Birla Money’s risky options strategy called Options Maxima.

 

Then there are others like the Department of Post which neither is able to handle its core business of delivering letters nor can it manage postal savings accounts. On both counts, there are numerous complaints of harassment from end users. LIC Housing Finance is backed by the country's largest insurer, the Life Insurance Corp of India (LIC). However, it may need to change its business practice while becoming a bank. Similar is the case of Shriram Capital, the entity from vehicle finance provider Shriram group. To meet the requirements of a bank, both LIC HF and Shriram would have to make several changes in their business model besides maintaining a higher capital reserves.

 

The case of IFCI, another state-controlled entity is quite interesting. The entity set up in 1948 as Industrial Finance Corp of India to provide medium- and long-term credit to corporations, is more into news in the past few years for the “fighting amongst its top management”. This resulted in IFCI's managing director and chief executive Atul Rai, resigning on 30 May 2013.

 

After the resignation of Mr Rai, the finance ministry put on hold its plan to sell stake in IFCI, says a report from Economic Times. The government owns 55.57% stake in IFCI. The report also mentions about an argument between the chief credit officer and one of the vice-presidents of IFCI that turned into fistfights in the office.

 

Earlier, in February 2012, a single judge of the Delhi High Court had passed a judgment holding Rai guilty of contempt of court in a case related to Koshika Telecom and awarded him one month's imprisonment, in addition to a fine of Rs3.5 lakh to be deducted from his salary. However, in April, a division bench of the high court set aside the earlier order, reports Business Standard.

 

According to the guidelines issued by the RBI for banking licences, the entity or group should have a past record of sound credentials and integrity, be financially sound with a successful track record of 10 years. For this purpose, RBI had said it might seek feedback from other regulators and enforcement and investigative agencies.

 

Among the applicants is JM Financial. Its claim to fame is that most of its schemes are consistently underperforming. In an analysis done by Moneylife for consistent underperformers during April 2006 to March 2012, JM Financial Mutual Fund was the second topper on the list of underperformers. We even did an article labelling it as the worst fund house. Its portfolio management scheme (PMS) is also a big mess. However, consistent underperformance had not deterred the group from dreaming to become a bank.

 

Nimesh Kampani-led JM Financial joined hands with Citigroup's former chief Vikram Pandit to spearhead its banking venture. Pandit, his business partner Hari Aiyer and Aparna Murthy Aiyer together bought a stake worth Rs45 crore in JM Financial. Pandit, who had an unceremonious exit from Citigroup last year, also had plans to make investments in JM Financial’s non-banking financial companies (NBFCs).

 

If shareholder value creation is a criterion, many will be thrown off the list easily. Take for example, India Infoline. After hitting a 52-week high of Rs93.35 on 18 December 2012, India Infoline shares are continuously falling towards its 52-week low of Rs48.25 reached on 27 July 2012. From a high of Rs393 reached in December 2007, the stock is down by a breathtaking 85%.

 

Similar is the case of Edelweiss Financial Services. After hitting a 52-week high of Rs45.90 on 9 October 2012, the company’s shares are on a downfall. It reached its 52-week low of Rs27.60 on 6 May 2013. Edelweiss’s peak price was Rs180, hit in January 2008. It is down 87%.

 

Reliance Capital, the Anil Ambani group company is another aspirant. Its shares hit a 52-week high of Rs508 on 7 January 2013 and thereafter, it was on a free-fall till March. On 26 March 2013, Reliance Capital hit its 52-week low of Rs297.05. From Rs2,925, the stock is down 86%. Similar is the story of Religare and Srei Infra, the other two listed entities among finance companies wanting to set up a bank.

 

Among the other surprising entrants in the fray are gold loan company Muthoot Finance, real estate company Indiabulls and Bandhan Financial, a microfinance company. Muthoot is struggling to steady its business model, which has got a blow from falling gold prices. Earlier in January, the RBI Working Group headed by KUB Rao expressed concern on some gold loan NBFCs, which have been raising public deposits surreptitiously through unincorporated bodies.

 

Kolkata-based Suryamani Financing Company is a part of Pawan Kumar Ruia group that consists of Dunlop, Falcon and Monotona. Its record in its core business is so poor that we are struck by the audacity of this group in seeking a banking licence. Kochi-based UAE Exchange is an NBFC and claims to have a countrywide network of 328 branches and 44,000 agents across 20 states.

 

Both Bandhan Financial and Janaklashmi Financial Services are MFIs and would find it difficult to prove its credentials during the RBI scrutiny. Kolkata-based Bandhan Financial claims to be operative in 18 states through its 1,804 branches and have a loan outstanding of Rs4,400 crore as of May 2013. Bangalore-based Janalakshmi Financial Services is promoted by Ramesh Ramanathan and claims to have assets of over Rs500 crore.

 

Nothing much is known about Noida-based Smart Global Venture and Gurgaon-based INMACS Management Services, except it is headed by chartered account Vinod Jain.

 

Looking at the list of aspirants it appears, as though, everybody wants to try their luck in this once in 10-year jackpot. However, given the time constraints and the quality of applicants, it would be interesting to see if any new licence is given before the general election.

User

COMMENTS

Ashish

4 years ago

But again .. as you said they were high-profile investors and i am just a small retail investor :) :)

Ashish

4 years ago

Yogesh ... Aditya Birla has paid customers for the losses incurred by them..i think its a good deed ... then why did u put them in the list of companies lacking integrity and credibility ?

REPLY

MDT

In Reply to Ashish 4 years ago

Thanks for your comment Ashish.
Investors (several high-profile) lost money through AB Money's Options Maxima. After the hue and cry, ABN decided to repay the money from its pocket. The question, therefore is why investors were made to invest in a risky product? (mis-selling?) Doesn't it raise doubt about integrity and credibility?

Nilesh KAMERKAR

In Reply to MDT 4 years ago

Some proven track record of mis-selling, can well be a selection criteria to set up a new bank.

Ashish

In Reply to MDT 4 years ago

ya i understand itz a mis-selling.... could be due to sales pressure and sales target .. Even I was mis-sold a insurance product by ICICI Prudential Life Insurance sales guy .. I had written several mails marked to the CEO Mr. Sandeep Bakhshi as well ... but no action taken yet :):) ...So the point is at-least in Aditya Birla Money's case the company and Mr. Aditya Birla were honest enough and have strong moral principles to listen to the suffered customers and pay back the losses incurred ...

Ashish

In Reply to Ashish 4 years ago

But again .. as you said they were high-profile investors and i am just a small retail investor :) :)

Ignoring SEBI rule, PMS companies refuse to disclose data

As part of our continuing campaign on poor disclosure of PMS data, we find that many PMS companies, including some of the biggest, have failed to disclose their schemes and performance on their own websites, despite a clear direction by SEBI

The entire capital market regulation is based on disclosure, and yet, the Securities Exchange Board of India (SEBI) has made little effort to ensure that portfolio management services (PMS) companies disclose meaningful and easily accessible information about the schemes and their performance, and thus, comply with PMS regulations for disclosure. To enable greater transparency and to get up-to-date information on PMS, SEBI directed PMS companies to upload the disclosure document on their respective websites. The disclosure document not only contains performance data, assets under management (AUM) but also balance sheet information, details of the portfolio manager, etc.
 

In its continuing research on PMS performance and disclosure, Moneylife has found out that most PMS companies, including some of the biggest names in Indian finance— ICICI Prudential Asset Management Company (AMC), Motilal Oswal AMC, Kotak Mahindra AMC, UTI AMC, Reliance Securities and HDFC AMC— have not put up their disclosure document online This means, to make an informed decision, investors will have to approach each PMS entity and specifically ask for the disclosure document, which can be very frustrating and time consuming, and even fruitless. On the other hand, mutual funds are mandated to upload not only NAV data on their websites but even annual reports as well as valuation policy for greater transparency.
 

The SEBI circular IMD/DF/16/2010, dated 2 November 2010, clearly says, “To ensure compliance with Regulation 14(2)(b)(iv) of SEBI (Portfolio Managers) Regulations, 1993, portfolio managers shall disclose the performance of portfolios grouped by investment category for the past three years as per the enclosed prescribed tabular format. Portfolio Managers shall also ensure that the disclosure document is given to all clients along with the account opening form at least two days in advance of signing the agreement. In order to ensure that the clients have access to updated information about the portfolio manager, portfolio managers shall place the latest disclosure document on their website, wherever possible” (emphasis ours).
 

Why is SEBI not acting against those who have not uploaded their disclosure document, or those who have made it difficult for investors to locate it? Moneylife has not only been researching the PMS performance but also goading SEBI to reveal PMS information on its website. We have succeeded only partly. The data is not comparable and the site is extremely slow, even though the regulator has spent crores of rupees on top tech companies to get its site done.
 

Moneylife filtered only those PMS companies who have more than average of Rs10 crore of discretionary assets under management (AUM), over the last five months (since the SEBI website does not provide for information prior to January 2013), and found that only 46 companies fit the bill. We decided to look up the websites of all these 46 companies and here is what we came up with.
 

  • Out of the top 10 companies on the basis of AUM size—Quantum Advisors, HDFC AMC, Motilal Oswal AMC, Enam AMC, Alchemy Capital Management, ICICI Prudential AMC, ING Investment Management, Reliance Capital AMC, Parag Parikh Financial Advisory Services and Anand Rathi Financial Services—shockingly only four of these companies, Quantum Advisors and ING Investment Management, Reliance Capital AMC and Parag Parikh have uploaded their disclosure documents online. Moneylife could not find the disclosure document of the remaining six. Collectively, these 10 companies have nearly Rs10,000 crore of AUM.
     
  • Not only have some PMS companies not uploaded their disclosure document, some have not even updated their documents to reflect most recent figures; many are outdated and are more than six months old. According to SEBI (Portfolio Managers) Regulations, 1993, the disclosure document should be updated every six months. But it doesn’t stop here. As mentioned in our earlier story, in most cases accessing the disclosure document can be an annoying exercise, as many PMS companies neatly tuck it away in some corner of their website.
     
  • So, searching for the document can take quite a bit of time and effort, if you’re tech savvy! And if you do find it, there’s no guarantee that it will be up-to-date. For instance, it took us a while to locate the disclosure document of Prabhudas Lilladher PMS, only to find out that it is updated till October 2012.
     
  • Some PMS websites require the user to sign on with a username and password. For instance, Kotak Securities, which handles an average of Rs72.84 crore in its discretionary account, requires you to login because information relating to PMS could not be found otherwise. Similarly, Avendus requires you to log in to obtain their disclosure document. Anand Rathi has put a brochure of one of their PMS schemes, but we could not locate their disclosure document as per SEBI’s norms. Similarly, Alchemy Capital Management only disclosed their commission structure, but we could not find the disclosure document.
     
  • Surprisingly, we could not locate PMS information for ICICI AMC (average of Rs547.56 crore of AUM) and HDFC AMC (average of Rs1,592.58 crore of AUM), two big names in finance.
     

SEBI has consistently fallen woefully short of ensuring compliance. Many PMS companies have not even complied with the circular, even in spirit. Ironically, in the same circular, SEBI stated that it “has come across lack of uniformity in practice relating to following issues pertaining to portfolio managers” and also “many portfolio managers are not making adequate disclosure regarding portfolio performance in the disclosure document.” But, after November 2010 SEBI has been very casual and has done little to ensure PMS companies comply with the circular. Regulation 14(2)(b)(iv) of SEBI (Portfolio Managers) Regulations, 1993, Portfolio Managers states the following:
 

“The Disclosure Document, shall inter alia contain the following
 

(i) the quantum and manner of payment of fees payable by the client for each activity for which service is rendered by the portfolio manager directly or indirectly (where such service is out sourced);
 

(ii) Portfolio risks;
 

(iii) Complete disclosures in respect of transactions with related parties as per the accounting standards specified by the Institute of Chartered Accountants of India in this regard;
 

(iv) the performance of the portfolio manager: Provided that the performance of a discretionary portfolio manager shall be calculated using weighted average method taking each individual category of investments for the immediately preceding three years and in such cases performance indicators shall also be disclosed;
 

(v) The audited financial statements of the portfolio manager for the immediately preceding three years.
 

Moneylife has been pushing SEBI to disclose the PMS data in public interest through emails, RTI applications and appeals. But it has been frustrating to get the regulator, acting too mulish, to act in the interests of the public.
 

Reported by: Aditya Govindaraj, Khalid Memon and Vishrut Patel
 

Read out earlier articles as part of our campaign to ensure meaningful disclosure of PMS data:

Power of RTI: CIC directs SEBI to disclose all information related to PMS

SEBI’s system of reporting PMS data continues to be frustratingly anti-investor

Arrogant SEBI’s response to RTI is shocking

User

COMMENTS

Rajan Anand

1 year ago

HDFC AMC - PMS real estate portfolio 1 and Senior Fund Manager Vipul Roongta REAL CHEATS

Not aware that you are aware of this gross cheating but I wanted to let you know and think through what we can do along with other investors

As per the Transaction Statement from 1/10/2015 to 31/12/2015 - the left over portfolio value was Rs 419345

As per their recent communication they are going to do final payout in Feb 2016 as investment exits


I called up Sudha Biju 022-6631633 to ask by when this will be paid out

To my utter surprise and dismay I was told the value was 3,30,000 approx from which they will deduct 2,96,000 and will send cheque of JUST 36000. When I asked what is this deduction of 2,96,000 - she told performance bonus for fund manager as we grew that fund at overall more than 10 % - she said some clause allow us to do that. God only knows what clause and what calculation they are using to do this deduction.


All investors - let us come together and fight this out
I think we can put blog or write to some site in SEBI of this gross cheating

My name is Rajan Anand 9810573644


Suiketu Shah

3 years ago

These so called "wealth management companies" boast of the knowledge they have and how great they are(ie they are GOD!) etc to psyche out the retail investors.If indeed they are so great and knowledgable,how come they are shit scared of disclosing their PMS data.Reason si simple for every 10 stocks they wl make you buy,5 wl be Z grade stocks at a high price where they wl make 15% commission.(and they call themselves experts)I am talking of the fraud Rm's here,not necessarily the companies which have hired them.The Rm's in most wealth management conmpanies are crooks who cannot be employed elsewhere.The only way to sort these criminal RM's is to beat they up if they force themselves on you without appointment.

Great work by ml in exposing how holow PMS is of every company in India.

Michael Mason-Mahon

4 years ago

If SEBI is serious about companies complying with their rules and regulation, it is very easy to say the least.

Each company is given written notice of the following:

1) The named company have fourteen days to comply the rules and regulation.

2) For each rule and regulation a company fails to comply with there will be a fine.

3) The Fines will start at 1 Crore per day, for the first twenty one days, thereafter the fines will increase to two Crore per day for a maximum of twenty one days.

4) Should the company still ignore SEBI, then the company's licence will be suspended till the company comply's with the rules and regulation.

5) Any company whose licence is suspended, before having their licence reinstated they will deposit a sum of no less than 4,000 Crore.

6) This money will be retained by the RBI for a minimum of one year, any further breaches of the rules and regulation the company will forfeit twenty percent of the deposited sum.

SEBI may find these companies will be very fast in complying with their rules and regulation.

It just takes a bit of courage to show who is in charge, the companies or SEBI?

Michael Mason-Mahon

4 years ago

If SEBI is serious about companies complying with their rules and regulation, it is very easy to say the least.

Each company is given written notice of the following:

1) The named company have fourteen days to comply the rules and regulation.

2) For each rule and regulation a company fails to comply with there will be a fine.

3) The Fines will start at 1 Crore per day, for the first twenty one days, thereafter the fines will increase to two Crore per day for a maximum of twenty one days.

4) Should the company still ignore SEBI, then the company's licence will be suspended till the company comply's with the rules and regulation.

5) Any company whose licence is suspended, before having their licence reinstated they will deposit a sum of no less than 4,000 Crore.

6) This money will be retained by the RBI for a minimum of one year, any further breaches of the rules and regulation the company will forfeit twenty percent of the deposited sum.

SEBI may find these companies will be very fast in complying with their rules and regulation.

It just takes a bit of courage to show who is in charge, the companies or SEBI?

Mun Mohan Kale

4 years ago

Who are all these people to demand PMS data when Finance Minister, PM and Madam Sonia are trying to garner enough funds for 2014 & 2019 elections so that they are safely well settled in Parliament & rule the country ever after.

sathyacumaran

4 years ago

the stock broking house would not disclose the PMS because this is only place where money laudering and all the black money of various person would be circulated and converted into white and the broking house making bucks out it and they cheat the innocent indian investors and loot their money for which instituion like sebi nse bse are just puppets they donot have any voice even if the chairman wants to implement some reforms the down below are not interested because the chairman is normally an IAS person so they get after retirement this post and afterwards they are contended with their hefty pension but the down below is doing the favour to stock broking with vested interest either they get non fringe benfits after their retirement they get good placement in the stock broking firms which they were patronising for many years and as such indian investors would not get any justice for the fraudlent practice unless this matter goes to international platform of wikileaks or others then only govt india would wake and attempt to tighten the belts by that time indian investors would lost interest or would have even dead the justice and law is so slow that by the time the verdict comes to their favour either they are out of world so is ptheatic condition of indian investors but for all the misdeeds of the sebi nse bse officials the GOD is there where in his books of account he accounts and similarily good punishment is rewarded to these employees as disease for them or thier family and this sorrow would enough but they should repremind and do justice and as an affected investors earnestly pray for speedy justice and reward before my life

sathya cumaran

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