Why People fall in the trap of Insurance Telecallers | How to Recognize fake Insurance Telecallers

 

Insurance Company often wonder that why many public report mis-selling and fraud through telecalling. Questions are always asked on authenticity of such complaints. It looks unbelievable that common people can fall to such basic insurance fraud telecalling without using their common sense and ignoring public warning by IRDA (Insurance Regulatory Development Authority).

Since 2011, IRDA had been advertising on all national news papers and television:

• IRDA does not call any customer

• IRDA does not offer any loan or bonus or scheme of tower.

• All Policy documents and literature of Insurance companies also warn public.

However, these telecallers do thriving business and many gangs operating are operating through small call centers.

How Call Center Scammers Trap Consumers

• Calling from IRDA verification department, do you have any complaint with your insurance company?

• Calling from Bima Lokpal , do you have any lapsed policy where your money is stuck?

• Calling from IRDA survey, are you satisfied with your agent? Did your agent share his 50% commission?

• Calling from loan department, would you like to have an interest free loan?

Almost 90% public give answers in yes and then the trap begins. Some of the professional call centres have access to data and policy details. They are able to win trust by doing similar activity as done by calling agencies of authorized Insurance companies. They begin Insurance fraud by winning trust and then lay foundation of further loop .

Now next telecaller takes over and builds story which one wants to listen. They use all attractive words like IRDA, Finance Department, Bima Lokpal and often call is made from numbers whose true caller identification also have similar name of government agency . Once someone gives listen to story for 2 to 3 minutes then trust builds up and one agrees to fall in the trap.

Reasons why common people gets trapped in the Insurance Fraud Calling

1. Offer is too good to refuse. Who will not like to have interest free loan? These fraudsters give simple logic that these are direct policies where companies are saving commission of agents. Companies are not charging interest because they are saving commission. You are agreeing to pay annual premium and company will have full amount in the policy term. During the period, if you die the claim is adjusted.

2. In case of complaint and lapsed policy, offer is made to pay future premiums through lapsed policy money. Very logical and one agrees to buy new policy. A letter of accumulated fund is shown on photo shopped letter head.

3. An agent life cycle is very short. 75% of agents leave agency business in first year. Such business is called orphan business with Insurance Companies. Telecallers commit insurance fraud with promise of returning accumulated agent commission of such orphan policies. Who will not like to have the commission back? Insurance fraud is done with promise of returning commission.

Mostly, insurance mis-selling and fraud happens because of human weakness of greed, greed and greed accepting easy money. Else why common people buy insurance through fraud tele calling but refuse to listen to trained licensed agents who solicit business after doing multiple meeting and knocking on many doors .

Easy money attracts all minds and they fall to the trap of tele callers ignoring all warnings of IRDA and Insurance Companies.

Let's Reach to us if you're receiving this kind of call or you're a victim of fraud insurance call. Contact us to below given details.

To reach us at InsuranceSamadhan.com –

Call us at – 844 844 0626

Mail us at – corporate@insurancesamadhan.com

Register your insurance complaint here

Section 45 for Insurance Policy Holders to Safeguard interest of Life

 

All life Insurance contracts are governed by section 45 of Insurance Act – meaning indisputability of Insurance Contract after 2 years of policy commencement or policy reinstatement.

What Does Mean of Section 45 in Insurance to General Public

A: Death Cover

1. Any death within the first three years of policy or reinstatement of Policy will be called Early Death and the Insurer can and should do proper investigation before paying the claim.

2. Insurer are custodian of Public fund and it is their duty to ensure that no one take advantage of the system by taking Insurance Policy by hiding facts and giving wrong information ,

3. In three year, the Insurer has the right to dispute the claim and onus to prove the validity of facts is on the family of the nominee.

4. If death happens after three years then the Insurance Company can not dispute the claim on the basis of non declaration of material facts. Which means no insurance company can deny the claim if the event occurs after two years of policy commencement or reinstatement .If a company still wants to argue then the onus of establishing the facts is on the Insurer .

B. Survival

1. All Life insurance contracts can be terminated by the Insurance company within three years of Policy if the Insurer feels that contract has been done on wrong declaration.

2. In case of Policy termination within three year, Insurance Company will have to refund all paid premiums.

2. Application of Section 45:

All Insurance contracts are made on the principle of utmost good faith where the Insurer is accepting the risk on the basis of Proposal Form only. There is organised crime where Policy has been taken on dead persons by giving wrong declarations. Hence Section 45 gives a three year window to investigate cases and curb all malpractices.

Duty of Insured to Declare all facts related to the following:

1. Medical History

2. Declaration of early deaths in family – if parents have died before the age of 50.

3. Declaration of early age morbidity in family

4. Occupational Hazards like working for Nuclear Establishment or Mines

5. Adventures Hobbies like Motor Racing

6. Details of previous policies

7. Income

8. Visits to countries in the danger zone.

If all declaration has been done with honesty then even early death claims will be paid. But insured can be sure that all claims after three years of policy will not be disputed.
It is important that all premiums are paid in time because each revival of lapse policy will reinstate the three years clause from the date of revival.

If you have any kind of problem regarding Section 45 or want to know more about it please reach us to below given details.

Insurance Brokers – An alternative to Insurance Agents

All Insurance is sold through various channels. Most common channel is Agent Channel and second popular channel is Brokers who are also licensed by IRDA

Difference Between Insurance Agent and Insurance Brokers

Agents represent Insurer and work as per guidelines of Insurer. However, Brokers represent customers. They first understand the need then look for a suitable Insurer who can provide the right solution.

What is a broker in Insurance?

Brokers are considered to be experts of Insurance and Risk Management hence they are well suited for large, specialised and bulk business. Broker channel was developed for large General Insurance Business, Group Insurance Business where premium need to be negotiated.

Types of Insurance Brokers Services

Brokers offers four type of services as detailed below:

• Need Analysis and documentation

• Management and reduction of risk

• Negotiate with Insurers for premium and Terms & conditions

• Claim management

Brokers need to have knowledge on Products, Insurance network and Risk Management. That is why, IRDA has separate regulations for Broker channels. Each Broker needs to comply with all IRDA Regulations through a Principal Officer who clears an IRDA exam after a training.

Benefits of Insurance Broker

• Save time and money. Broker can find out a right match

• Advisory on Risk Management and Mitigation so that your premium can be reduced.

• Brokers are experts and select the best solution and not the most economical solution.

• Specialised needs in General Insurance which need case preparation and premium calculations

• Claim Management and guidance

Who pays to Brokers?

• Brokers are paid by Insurer and Insured need not pay.

• In some special consultancy, Brokers take a fees from Insured also.

Who should use Brokers?

• Mainly suited for Business Houses for their Insurance Needs

• For specialised event based insurances

• Group Insurance which require negotiations

• Specialised risks

Also Read: How Life Insurance agents are mis-selling Insurance Policy?

Insurance Samadhan do not recommend Broker channel for Retail customers who need more education, hand holding and persuasion. There is enough market opportunities for both channels. Agent become accountable to a retail customer and ensure policy persistency in long run. Lot of mis-selling and fraud can be curbed if customers choose their agent after lot of screening, interviews and reference. Customer should not fall to traps of offers of loan, free gifts, gold coins. Customers should be beware of phone calls promises because all these are fake.

Choose your intermediary with lot of consideration if you want to have a peaceful life.

Insurance Samadhan already helped resolve over 13,500 customer grievance cases related to all types of Insurances, ULIPs and other financial products.

Travel Insurance: Get to Know All About Travel Insurance Claim Process in India

Got travel insurance? Great! You have put on an extra seat belt that keeps you financially secured over your trip.

We understand your pain if you have suffered an unfortunate event and need to claim your travel insurance. The process can be overwhelming, especially after undergoing a catastrophe, here we will break down everything you need to know about the travel insurance claim process.

Types Of Travel Insurance
Following are the types of travel insurance you can purchase according to your need while travelling in India or abroad:

1. Student Travel Insurance

2. Domestic Travel Insurance

3. Family Travel Insurance

4. Senior Citizen Travel Insurance

5. Group Travel Insurance

6. International Travel Insurance

Read More - Travel Insurance: Know everything about Travel Insurance in India

First things first, fill the claim form. Fill all details as accurately as possible. You would need to bring together important documents that are required along with a claim form.

Documents Required to claim a Travel Insurance
Here are the list of some important documents which need to be submitted to the insurance company while filing your travel insurance claim.

• Original ticket or boarding pass

• Copy of the passport indicating travel dates

• Claim form

• Original bills, receipts and vouchers

• For medical claims – medical practitioner’s consultation notes, original admission/discharge card, bills with prescriptions

• Emergency travel certificate and new passport copy (in case of loss of passport)

• Details of compensation provided by Airlines, if any (in case of loss of checked baggage)

• Letter from policyholder citing the reason for the cancellation of trip

• Copy of cancelled cheque

Note: This is not an exhaustive list and insurance company might ask for additional documents.
(Expert’s advice: Always keep a copy of the claim and all required documents)

Also Read: Things you should consider while buying travel insurance

Travel Insurance Claim Procedure:

You will have to provide them details about the incident and take authorization for the expenses. Most of the insurer company websites mention the claim process online. Make sure you read it thoroughly and carry out the claim process in an informed manner.

For example, here are some different scenarios-

If you are a victim of a medical emergency- let’s say you with an accident or illness on your trip. You may file a claim while you are on the trip. However, if you had funds to incur the costs, you can apply for a reimbursement claim after returning from your trip.

If you are a victim of crime- your destination is vital. Reach out to the nearest police station as soon as possible and register a complaint. Without a copy of the complaint, you cannot raise a claim. Also, you will need to inform the Insurer Company or agent immediately.

(Expert’s advice: As soon as you face an unfortunate event, make sure you inform your Insurer Company or agent as soon as possible).

After you have applied for a claim, your agent or a member of your insurer company will investigate the matter and try to settle as soon as possible. If you receive an outcome that you are unsatisfied with, please feel free to reach out to us.

If you are facing any problems related to travel insurance claim, so we are here to help you. Insurance Samadhan already helped resolve over 13,500 customer grievance cases in the past related to all types of Insurances, ULIPs and other financial products