Reliance Life’s drive against fraud callers – Will it take action against its corporate agent AB Capital?

Raj Pradhan 24 July 2013

Reliance Life has embarked upon a pan-India drive to fight against spurious callers, but will it take any action against its corporate agent AB Capital whose employees have fraudulently sold policies with fake offer of “interest free loan” from Reliance Capital? Why is AB Capital not named in the press release? Moneylife has written a series of articles

Reliance Life has started an initiative to curb the menace of spurious callers offering “interest-free loan” to entice customers to buy Reliance Life products. While the initiative is commendable, there have been

cases wherein its own corporate agent AB Capital employees have been fraudulently involved in such sales. Ironically, while Reliance Life feels it is a victim of such fraud, the same is the stance taken by AB Capital who wrote to Moneylife stating that “Based on our internal vigilance, we plan to lodge FIRs against the perpetrators and terminate their employment.”

Read: Reliance Life’s corporate agent AB Capital offers to help victims of fraudulent “interest-free loan”

It’s perplexing that the Reliance Life press release is silent about AB Capital. Moneylife Foundation’s Insurance Helpline has solved five cases of life insurance sold with bait of fraudulent “interest-free loan” offered by AB Capital personnel. Reliance Life refund in the five solved cases ranged between Rs20,000 to Rs2 lakh. There are six cases pending of which AB Capital has indicated that refund is in process for five policyholders. Has Reliance Life taken any action against its corporate agent AB Capital for the fraudulent selling? There has been no response from Reliance Life on this question.

Read: Is Reliance Life’s corporate agent AB Capital involved in fraudulent “interest-free loan” offers? Will Reliance or the regulators initiate action?

The press release has modus operandi of spurious callers stating that the fraudulent agency fills fictitious data and gets a policy issued, earning hefty commissions. How can a fraudulent agency make a sale to earn commissions? The sale can happen only by authorised corporate agents or individual agents. The basic premise that “customers get a call from a person claiming to be an employee or agent of the company” itself is flawed when there is a sale involved. The policy cannot be sold by an agency unrelated to Reliance Life.

It is time Reliance Life proactively take a look at all the policies sold by AB Capital to help the customers who have been fraudulently sold policies with a fake loan offer. It will give them success in solving the so called spurious sales rather than waiting for policyholders to respond. The answer can be found within its own agency force.

Can Reliance Life adopt a hands-off attitude? If the agent is peddling lies on its own, shouldn’t Reliance Life discontinue its relationship with AB Capital? Will the Insurance Regulatory and Development Authority (IRDA) act quickly to cancel AB Capital’s license before it cheats more people? We will be tracking this story to bring you updates.

Read: Reliance Life refunds Rs60,000 in a suspicious transaction: Another Moneylife success

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

Comments

User

Rajkamal Panchal

8 years ago

Hi, I am an employee of a public sector bank. Our bank recently had tie up with united india insurance company, the affairs of claim settlement are done by Dhs medi assist (TPA). My policy cover commenced from 1.10.2016 to 30.09.2017 everything was going hood my whole family was covered under the policy infact I claimed a cashless treatment for my father. When the policy expired our bank renewed the policy again for 1 year I.e. 1.10.2017 to 30.09.2017 but in the renewed policy my father's name was deleted from the beneficiary without any information . And I had to admit him again for the treatment but I could not claim cashless because TPA denied to pay because father was not the beneficiary as pe the policy . I paid the bil of 65000 from my own sources. Then I send many requests and reminedrs for updating my father's name but the kept denying finally when my bank joined the conversation and made my father name updated under policy. But here starts the dirty game of TPA . I claimed for reimbursement for that 65000 claim I sent that package bill wich I paid at hospital but TPA is asking for the breakup bill for that GIPSA package bill ,I again talked to the hospital about breakup bill but they refused to give me te breakup of the package and TPA is not processing te claim without breakup bill. My claim is kept pending from last 6 months. What should I do. ?

tarun

1 decade ago

i also get a call from a no starting 140 he told me the same & offers me a loan of 1 lakh with zero% interest
the person is MANAV MEHTA & his senior KHUSHI MALHOTRA from AB CAPITAL( the broker name on my policy document) then there agent collect 15000 of cq from me and then khushi malhotra told me that i got 5000 back in my account every time i paid my premium, KHUSHI MALHOTRA send me a message & told me to diposite 2000rs for processing fees in two hours but that time i was nt in town then she told me to recharge her phone as same amount of processing fees and she will diposite it on my behalf in company, now its two & half mnth gone they both r not attending my phone and every time i call from diffrnt no they promise me that all is done by company only transection is balance, nw i relise from ur article that they r really a fraud,
is thr anyone who help me out to take a stricked action against them

ritesh

1 decade ago

today i got a call from 011-30190343 stating that they are from Birla insurance and 10 yr zero interest loan for insurance. I asked them few more question related to IRDA etc. and the person cut off the phone

sunil jivan date

1 decade ago

I got a phone call offering me loan at 2.5%. I asked the guy to clarify whether it was per month or per year & he confirmed it was per year. I still thought that he must be a rookie in the call centre so I told him that it cannot be per year. He was not making a mistake because he immediately said that at 2.5% per month it would be 30% per year and No it was indeed 2.5% per year. I told him if that be so I wanted a loan of 1Cr. He wanted to know my profession and my ITR returns. I told him why all that, I will take your 1cr & keep it in post office at 8%. So your money is safe. He said that for such a large loan he would require documents. So I said why don't you keep the money in post office your self i/o of lending it at 2.5%. he said his company is intretsed in expanding customer base.

To cut the story short; though upfront the offer looks to be too attractive, we have to remember that there is no free lunch. It is either connected with some Insurance plan that ultimately they may want to palm off or it is a Nigerian fraud scheme where they will ask me to deposit a few Ls or Ks in a bank account for processing the loan and then vanish with it. Beware you too may get such calls which are apparently too good to be true & believe they are just that.

raj

Replied to sunil jivan date comment 1 decade ago

good point

Ramkumar agrawal

1 decade ago

Actually Reliance life is the biggest culprit in selling of policy from Call centre. They call in the name of IRDA claiming that they can make benefit to client by releasing their unclaim bonus. I have complete record of their conversation in my recorded line. Including their name and mobile number. For claiming unclaim bonus they ask client to take two policy from reliance and the unclaim bonus will be deposited in these new policy.

raj

Replied to Ramkumar agrawal comment 1 decade ago

yes, giving unclaimed bonus is another approach for mis-selling.