26 August 2014

To,
The Chairman,
Insurance Regulatory and Development Authority

rd
!loor, "arishram #havan
#asheer #agh
$ydera%ad &00004'
(u%) #irla (un *i+e insurance +raud sales
Dear Sir,
Greetings!
Moneylife Foundations Insurance Helpline was started in 201! I would li"e to infor# you
t$at we $a%e &een getting se%eral e#ails related to fraud sales &y 'irla Sun (ife! )$is is si#ilar
to t$e *eliance (ife fraud selling &y corporate agent +' ,apital! It is no surprise since as per
latest I*D+ statistics, HDF, (ife, 'irla Sun (ife and *eliance (ife are top t$ree in co#plaints
as per I*D+ co#piled data! (ast year, HDF, (ife, 'a-a- +llian. and 'irla Sun (ife were t$e top
t$ree! It s$ows t$at 'irla Sun (ife is responsi&le for increasing nu#&er of fraud sales, &ut
I*D+ $as ta"en no action!
/lease see t$e following cases and $elp to do -ustice in t$e interest of policy$olders0
1! #ro,ers are routing +raudulently sold policies through multiple insurers' 1e
recently $ad a case of *ad$es$ya# )iwari fro# Guwa$ati! He cannot write in
2nglis$, &ut $as &een fraudulently sold policies wort$ *s3 la"$! He is facing a&uses
fro# t$e seller as"ing $i# not to surrender $is policies! *eliance (ife policies are
sold &y +' ,apital, w$ile HDF, (ife and 'irla Sun (ife policies are sold &y sa#e
&ro"er called 4niwealt$ Insurance 'ro"ers! *eliance (ife and HDF, (ife $a%e
refunded full pre#iu#, &ut 'irla Sun (ife refuses to gi%e refund e%en after
Moneylife Foundation inter%ention! Does it #a"e sense5 HDF, (ife refund pro%es
t$at 4niwealt$ Insurance 'ro"ers is in%ol%ed in fraud sales! How can one insurer
gi%e refund w$ile t$e ot$er refuses e%en t$oug$ t$e sa#e &ro"er is in%ol%ed5 )wo
insurers $a%e accepted fault and $ence gi%en refund, t$en $ow can t$ird insurer
deny any wrongdoing5 ,an I*D+ please inter%ene in t$is case5 I*D+ IGMS to"en
nu#&er is 67187018961, 67187012:62, 67187022202, 67187022200, 671870221;;, 67187
0138;1, 67187011938, ;718700::80!
2! Are %an,s also +raudulently selling- /lease c$ec" t$is case w$ic$ we $ad referred
to ,iti 'an" and 'irla Sun (ife! ,iti 'an" $as gi%en no reply e%en after stating t$at
t$ey will in%estigate! 'irla Sun (ife as usual does not t$in" t$ey $a%e done anyt$ing
wrong! 4nli"e *eliance (ife, 'irla Sun (ife is in denial a&out fraud sales! Mr Mano-
<u#ar is fraudulently sold policy no! 006:2283 &y 'irla Sun (ife! Here are details0
I got call fro# =>31118;:6100, '$atiya =dont "now $is real na#e 7 ;869322098?,
saying t$ey are fro# ,iti &an" and offered #e loan! )$ey told interest rate is 9!:@
and #ini#u# loan a#ount will &e *s: la"$, &ut t$eir condition is t$at I s$ould &uy
'irla Sun (ife insurance policy of pre#iu# of *s0,000 and su# assured around
*s: la"$! 2arlier t$ey told t$ey dis&urse t$e loan wit$in 0 days! 'ut after 0 days
were o%er t$ey are not s$owing any interest! 1$en I called t$e# last ti#e =1:t$ Auly
2018?, t$ey told t$ey will send t$e DD! +fter t$at I started recording t$eir calls and
e%en %ideo recorded call wit$ t$e#! )$e fraudster is saying t$at $e is fro# ,iti
&an", <annig$a# road, 'angalore, w$ereas t$e call is co#ing fro# Del$i as per
location of t$eir nu#&er =w$ic$ I searc$ed in net?! )$e policy s$ows +d%isor Ba#e
as S' Insurance &ro"ers /%t (td!
! .ore o+ A# Capital and multiple insurer +raud / *eliance (ife $as &een selecti%e in
refunds related to +' ,apital fraud of Cinterest freeD loan offer! 4nless t$ere is
%oice recording wit$ fraud seller or written proof, *eliance (ife refuses to #a"e
a#ends! It #eans t$at *eliance (ife +' ,apital %icti#s are not getting -ustice fro#
t$e insurer! Surprisingly, I*D+ $as not initiated any action so far, forcing us to
eEplore ways to escalate t$is issue! ,$ec" t$is case of Mr Bitin Aain for w$ic$
*eliance (ife and 'irla Sun (ife $as not gi%en refund0 I was $a%ing se%eral eEisting
policies t$at were lapsed! In #y welco#e call I was told t$at I can get &enefit of #y
lapsed policies! Fne person na#ed *o$an Mal$otra told #e t$at $e will do fund
#anage#ent of #y policies and assured t$at &y doing fund #anage#ent t$e
#oney t$at already stuc" in t$e policies will gi%e &etter returns! 'ut for t$at I $a%e
to do so#e ot$er policy, and on &e$alf of t$e new policy, t$ey will do t$e fund
#anage#ent! +fter so#e ti#e $e told #e t$at $is co#pany is gi%ing an offer of an
Moneylife Foundation 305, 3rd Floor, Hind Service Industries Premises, Off. Veer Savarkar Marg, Near Shivaji Park Seaface,
Dadar (W), Mumbai 400028. Tel: 022-49205000 (Board) Fax: 022-49205022
(2D )G, if I go for anot$er policy! +fter so#e ti#e t$ey told #e t$at t$ere is so#e
s$ortco#ings in t$e eEisting policy and told #e t$at I need to get I)* code so t$at
fund can &e released! )o get I)* code $e as"ed to do one #ore policy else I $a%e to
deposit so#e a#ount! (i"e t$at t$ey con%inced #e to do se%eral policies and e%ery
ti#e t$ey told t$at t$e a#ount will &e recei%ed after so#e ti#e! 'irla Sun (ife
/olicy 7 0062;:999, pre#iu# is 6:,000! *eliance (ife pre#iu# is *s1!90 la"$ and t$e
policy nu#&ers are 7 :103893, :110;339, :110;332, :12100:1 and :18:1033!
8! #irla (un *i+e agent +raud) 2%en 2D of +ir India was not spared! He was #ade to
&uy new policy fro# funds of eEisting policy assuring t$at transfer will &e done
e%ery year fro# eEisting policy to new policy! )$e agent #ade co##ission fro#
new policy! Future pre#iu#s were not paid assu#ing t$at t$e insurer will do
transfer of funds to new policy! )$e transfer was not done for future pre#iu# as
t$e agent was only interested in first year front loaded c$arges! 'irla Sun (ife #ade
profits &y gi%ing a paltry auto7surrender %alue! Here is case of Mr Aitender
'$arga%a0 I #ade t$ree pre#iu# pay#ents for an eEisting policy! I was told 'irla
Sun (ife agent Aigna S$a$ t$at t$e policy $as stiff c$arges and new policy $ad
significantly lower c$arges! S$e suggested a p$ased transfer of funds fro# t$e
original policy to a new policy H 00880:80 =Freedo# :; und co%erage? and
accordingly transferred *s 2 la"$! )$e future transfers were not done and I
assu#ed t$at it would &e done as pro#ised! + series of SMSes were eEc$anged
su&seIuently and s$e "ept co#ing up wit$ one eEcuse or t$e ot$er! )$e SMSes are
reproduced &elow, and t$e sa#e were also sent to t$e 'irla Sunlife $elp des"! )$e
policy auto7surrendered and t$e insurer ga%e c$eIue of *s1:,000 against #y
pre#iu# pay#ent of *s2 la"$s! I $a%e not deposited t$e c$eIue!
)$e a&o%e are -ust four eEa#ples we are gi%ing at t$is ti#e! )$ere are nu#erous ot$er
eEa#ples of 'irla Sun (ife related fraud selling! Few custo#ers $a%e &een ta"en for a ride
wit$ pro#ise of getting insurance co#pany I/F price at a #assi%e discount! )$e
custo#ers ended up wit$ policies fro# #ultiple insurers li"e 'irla Sun (ife, *eliance (ife,
HDF, (ife, 'a-a- +llian. and '$arti7+J+ (ife! Bo wonder t$ese insurers are in t$e top7
fi%e co#plaints list prepared &y I*D+!
Moneylife Foundation $ad written to you a&out fraud sales on 1
st
Auly 201 and 1:
t$

Aanuary 2018! )oday, inter#ediaries =&ro"ers, corporate agents, distance #ar"eting? are
in%ol%ed in fraud selling! *eliance (ife $as refunded cases in%ol%ing sales &y Srid$ar
'ro"er! Is t$at not ad#ission of &ro"er guilt5 Do we need any #ore proof5 )$e fact is t$at
Moneylife Foundation 305, 3rd Floor, Hind Service Industries Premises, Off. Veer Savarkar Marg, Near Shivaji Park Seaface,
Dadar (W), Mumbai 400028. Tel: 022-49205000 (Board) Fax: 022-49205022
t$e du&ious sellers $a%e to route t$e policies t$roug$ %alid inter#ediaries! So, t$e
inter#ediaries and insurers "now w$o $as #ade t$e sale as co##ission is paid! )$e &uc"
stops at t$e insurance co#pany! 1e reIuest I*D+ to act against t$e culprit inter#ediaries
and insurers so t$at t$e fraud calls and selling stops!
1e reIuest your 4*G2B) attention in t$is #atter and action to protect innocent
custo#ers w$o continue to &e ensnared into du&ious in%est#ents and -ustice done to
possi&ly la"$s of policy$olders w$o $a%e &een a %icti#!
/lease let #e "now w$at we can do to $elp I*D+ to cur& #enace of fraud selling of life
insurance products!
1e *2K42S) you to $elp us get answers to t$e following0
1! Has I*D+ ta"en any action against t$e insurers wit$ $ig$ nu#&er of co#plaints as
per I*D+ statistics5 If so, w$at action5 If not, w$y is t$ere no action5
2! +ccording to I*D+ *)I reply dated 2;
t$
Marc$ 2018, I*D+ $ad written to '$arti7
+J+ (ife on 18
t$
+ugust 201 to enIuire a&out fraud selling cases! 'ut, t$ere was no
reply fro# '$arti7+J+ (ife! I*D+ $as sent a re#inder to '$arti +J+ on 28
t$

Fcto&er 201 =date o%erwritten to 1
st
Bo% 201? to get response! Did '$arti7+J+
gi%en any response5 If yes, please gi%e us t$e details! If not, please tell us w$at
I*D+ $as done to follow7up on t$e cases5
! *eliance (ife $as refunded nearly *s0 la"$ to policy$olders after Moneylife
Foundations inter%ention! *eliance (ife was recently penali.ed &y I*D+ for
different derelictions, &ut t$ere is no penalty or warning related to #assi%e +'
,apital =corporate agent? fraud selling! <indly tell us w$at action I*D+ $as ta"en
against *eliance (ife for #assi%e fraud selling5 If not, w$y no action e%en after
conclusi%e proof5
8! 1e certainly $ope I*D+ ta"es action ta"en against 'irla Sun (ife &ased on t$e
detailed data gi%en in t$is #ail!
Moneylife Foundation 305, 3rd Floor, Hind Service Industries Premises, Off. Veer Savarkar Marg, Near Shivaji Park Seaface,
Dadar (W), Mumbai 400028. Tel: 022-49205000 (Board) Fax: 022-49205022
1e loo" forward to your response on 'irla Sunlife fraud cases t$at we $a%e presented!

0ith #est Regards,
(ucheta Dalal
!ounder Trustee
.oneyli+e !oundation

'cc
Dr! G! Malli"ar-un
FSD =Grie%ances?
,onsu#er +ffairs Depart#ent
Moneylife Foundation 305, 3rd Floor, Hind Service Industries Premises, Off. Veer Savarkar Marg, Near Shivaji Park Seaface,
Dadar (W), Mumbai 400028. Tel: 022-49205000 (Board) Fax: 022-49205022