Insurance Scams

What is this scam?

Insurance scams in India take multiple forms — from fake agents who collect premiums and issue forged policy documents, to legitimate policies mis-sold with hidden conditions, to fraudulent calls claiming your existing policy has lapsed or that you are owed a bonus. India has millions of insurance policyholders who are vulnerable to these tactics.

How it works — step by step

1. 1

   Fake agent visits home and sells a 'life insurance' policy — collecting premium payment and issuing a forged policy document.

2. 2

   Caller claims to be from IRDAI or your existing insurer — says your policy has lapsed and requires immediate payment to restore, or that bonus money is waiting.

3. 3

   Offers of 'guaranteed return' policies with returns far above market rate — typically a Ponzi scheme using insurance as cover.

4. 4

   Caller claims to be from a genuine insurance company and offers an upgrade — collects premium but cancels the old policy without informing the customer.

🚩 Red flags — warning signs

• ⚠️Insurance agent who cannot show you their IRDA registration and the insurer's appointment letter
• ⚠️Any caller claiming your existing policy has lapsed — call your insurer directly using the number on your policy document
• ⚠️Guaranteed returns above 8–10% annually on any insurance-linked investment product
• ⚠️Request for premium payment via UPI directly to an individual account rather than the company account
• ⚠️Policy document not available on the insurer's official website for verification

✅ What to do if you've been targeted

1. 1Verify insurance company registration with IRDAI: irdai.gov.in — verify agent licence too
2. 2Never pay insurance premium directly to an individual — always to the company account with official receipt
3. 3Verify your existing policy status directly on the insurer's portal or call official helpline
4. 4File complaint at IRDAI: 155255 or irdai.gov.in/Bimalokpal
5. 5File complaint on cybercrime.gov.in for online insurance fraud

📋 Official resources & complaint portals

• →irdai.gov.in
• →IRDAI Helpline: 155255
• →Bima Bharosa: bimabharosa.irdai.gov.in
• →cybercrime.gov.in