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Manmohan Sardesai (name changed) wanted to renew the car insurance for his Tata Nano LX 2009, registered in Mumbai.

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

    Rajkamal Panchal

    1 year 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

    6 years 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

    6 years 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

    6 years 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.

    REPLY

    raj

    In Reply to sunil jivan date 6 years ago

    good point

    Ramkumar agrawal

    6 years 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.

    REPLY

    raj

    In Reply to Ramkumar agrawal 6 years ago

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

    Health insurance portability redefined to exclude move within the same insurer

    An innocuous redefinition of portability has ramifications for the insured interested in porting from an existing mediclaim product to a new innovative product launched by the same insurer

    Insurance Regulatory and Development Authority (IRDA) released amendments to guidelines on ‘standardisation in health insurance’, which redefines portability. The circular dated 3 July 2013, says, “Portability means transfer by an individual health insurance policyholder (including family cover) of the credit gained for pre-existing conditions and time-bound exclusions if he/she chooses to switch from one insurer to another.” The existing definition had additional words that have been deleted – “...or from one plan to another plan of the same insurer, provided the previous policy has been maintained without any break.” What does this mean?
     

    Before 1 October 2011, if you needed to move to a new health insurance company, you would have to become a new customer for them and lose all the benefits that your existing health insurance policy might have accumulated for pre-existing diseases (PED) and waiting periods for specific procedures. With portability, mediclaim PED and time bound exclusions for specific procedures will be given credit for the time period spent with existing health insurance product. Till now, portability was allowed within the same insurer.
     

    Porting from existing mediclaim product to new innovative mediclaim from same insurance company, from family floater to individual mediclaim and group to individual product within the same insurance company was allowed. The portability guidelines clearly state that individual member, including the family members covered under any group policy shall have the right to migrate to an individual policy or a family floater with the same insurer.
     

    If so, the new innocuous looking redefinition of portability is a game changer. As such, hapless senior citizens and those with PED are denied porting by the new insurance company under the “right to underwrite”. Please read Moneylife cover story Switching your Mediclaim?to understand how insurance companies are selectively allowing porting. Porting for young and healthy may be embraced with open arms by insurance companies, but for old or unhealthy it is just an illusion due to strict medical underwriting by many private insurers. It is a great scheme on paper, but difficult to implement in reality.
     

    An existing insurance company has a relationship with the insured and may find awkward to deny porting to other products from same company. There will be some percent of policyholders filing claims who are renewed by the insurer, much against its own wishes. With the portability redefinition, the existing insurer is relieved from being answerable to allow porting to new product. The new insurer too will deny porting for consumers with claims history and hence these policyholders will be stuck to not just same insurer, but even to the same product.
     

    Group policy may be discontinued by employer or no longer be applicable due to retirement; porting will now be denied to individual mediclaim policy of same insurer. Family floater may have maximum age limit and these policyholders will not be allowed to port to individual mediclaim of same insurer. IRDA move is surely not in consumer interest; insurance companies will be a happy camper.
     

    Moneylife had emailed to several insurance companies to get their feedback, but there were only three responses till the time of writing. As of now, the redefined portability seems to be given benefit of doubt by the insurance industry respondents. We are not sure how long it will continue as the insurance company will start seeing the benefit of using the new definition of portability to prevent porting a policyholder within the company products on a case to case basis.
     

    M Ravinder, national head - rural, accident & health, Tata AIG General Insurance, says, “Portability will be allowed within the same insurer to the extent that you can migrate from a group policy to an individual health insurance policy or a family floater policy. However you cannot move from a group policy of one insurer to a retail policy of another insurer. Also, the industry, so far, has not experienced as many portability cases or migration cases as expected.”

    According to Dr Amarnath Ananthanarayanan, CEO and MD, Bharti AXA General Insurance, "The IRDA has recently come out with a corrigendum to the portability guidelines whereby it appears that the definition of portability has been restricted to mean transfer of retail policies from one insurer to another.  A plain reading of the revised condition leads to the conclusion that portability does not apply to changes in plan with the same insurer. However, we are seeking clarification from IRDA on this aspect as we are of the opinion that logically, the benefits in respect of pre-existing condition and time bound exclusions should always be allowed to the insured if he/she chooses to shift from one plan to another of the same insurer. We shall formulate our future course of action once we receive clarification from the regulator."
     

    According to Mukesh Kumar, head strategy and marketing, “We are allowing portability from our group to an individual policy however due to specific reasons only, like change of job or retirement. For old discontinued products (if any) we may extend a continuity benefits subject to terms and conditions. We are offering continuity from family floater to individual if the customer requests for a change; subject to underwriting and product terms and conditions.”
     

    According to Arvind Laddha, CEO, Vantage Insurance Brokers Pvt Ltd, “Yes, the circular does seem to suggest that portability refers to movement from one insurer to another. However, my sense is that the intent is not to prevent movement from group to individual policy or from one product of the insurer to another, but just clarify that this term refers to movement from one insurer to another. Insurers should be able to offer similar benefits of movement from one plan to another offered by them, not withstanding this clarification.”
     

    Yashish Dahiya, CEO, Policybazaar.com, says, “It must be a miss. I am sure there will be a clarification as customers should obviously get the benefit of new product innovation by insurers, else companies with the largest portfolios have most to lose. They have the right to innovate and offer their existing customers the benefits of that innovation.”

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    COMMENTS

    Vaidyanathan

    6 years ago

    Quite informative. Is it intentional shoddy work by the IRDA? Thank you Moneylife.

    Vaidyanathan

    6 years ago

    Quite informative. Is it intentional shoddy work by the IRDA? Thank you Moneylife.

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