In your interest.
Online Personal Finance Magazine
No beating about the bush.
Moneylife Foundation’s Insurance Helpline has solved three cases of life insurance sold with a bait of fraudulent “interest-free loans”. In all the cases, Reliance Life’s corporate agent AB Capital was involved
Moneylife Foundation’s Insurance Helpline has helped three persons to get refunds of Reliance Life Insurance policy premium as the product was fraudulently sold by enticing the customer with a fake “interest-free loan” of 10 times the premium from Reliance Capital. The latest case was of Shailendra Dheer (name changed) who had paid Rs30,000 premium to AB Capital with hope of getting Rs3 lakh “interest-free loan”.
With Moneylife Foundation’s intervention, Mr Dheer immediately got a call from head–customer care of Reliance Life who helped to get refund of Rs30,000 within two days. The fourth case has just been reported to AB Capital wherein the customer paid Rs20,000 premium for lure of Rs2 lakh loan. Customers even get a fake loan reference number to make it look authentic. The waiting period for the fake loan is ‘forever’.
In the previous two cases, Prashant Gupte (name changed) got a refund of Rs2 lakh and Dr Sujay Verma (name changed) got a refund of his premium of Rs60,000. Mr Gupte had taken a personal loan of Rs2 lakh to pay the premium. Clearly, these are cases of outright cheating ought to make the regulator sit up, but until they do, people are getting trapped into taking a loan to buy high premium insurance plans of trivial value with the lure of an “interest-free” loan of 10 times the premium. Dr Verma was running pillar to post for six months to get the refund without any success, but within two hours of our taking up his case with the company, Reliance Life promised to make amends.
We had stated in our previous article without mincing any words, “Will the Insurance Regulatory and Development Authority (IRDA) act quickly to cancel AB Capital’s license before it cheats more people?”AB Capital, a corporate agent of Reliance Life has written to Moneylife Foundation probably after facing the heat of its name entangled in the three cases that were resolved.
AB Capital’s email states that “We would like to bring to your attention that AB Capital is committed to protecting its customers' interests and ensure customer delight. We are therefore taking these reported incidents very seriously. As a result, based on our internal vigilance, we plan to lodge FIRs against the perpetrators and terminate their employment. We have strengthened our pre-login verification calling wherein each and every customer is called for verification and confirmations.”
AB Capital asks Moneylife readers to bring any such incidence of spurious selling to their notice by writing to them at [email protected] . Please drop a line to Moneylife Foundation Insurance Helpline [email protected] so that we are kept in the loop and can ensure justice to the hapless consumer. AB Capital’s email ends with “We would also like to caution your readers to not let greed get the better of them and not fall prey to any such lucrative and bogus offers.” If only such bogus offers were never made by those associated with AB Capital, the problem would not have arose.
AB Capital should evaluate at all the policies sold by them instead of waiting for policyholders to make complaints. Reliance Life has also a lot to answer even if it did not directly make such fraudulent offers. IRDA can surely get the menace to stop, in case, it acts. Reliance Life and IRDA—are you listening?