Rise in insurance frauds rings alarms bells

There are inter-state gangs out to defraud customers of insurance policies

  • Money9
  • Publish Date - November 24, 2021 / 05:33 PM IST
Rise in insurance frauds rings alarms bells
It is a matter of grave concern that insurance firms are not acting swiftly when their names and brands are blatantly misused to cheat people. Here, employees of insurers are allegedly the accused.

Insurance is a favourite playground of fraudsters and cheats. Inability of customers to fully grasp the nuances and concept of insurance is one reason why gullible customers are often taken for a ride. As in other financial products, the greed on the part of customers plays a part too.

Rising number of insurance frauds which are being reported from across the country should come as an alarming signal to both insurers and policyholders. In fact, there are inter-state gangs out to defraud customers of insurance policies. Fraudsters employ various modi operandi to cheat policyholders. Money9 had brought to light how swindlers defraud customers by masquerading as IRDAI officials. Here is yet another case.

According to reports, the Mumbai Cyber Police have busted an inter-state gang that was selling fake online life insurance policies of reputed insurers and defrauding customers of large sums of money. The gang members involved in this particular case are spread across Maharashtra, Telangana, Uttar Pradesh, Haryana and Delhi.

Cheats are worth almost Rs 19 lakh

According to an agency report published by MoneyLife, Bani Singh and Vijay Mehta of Bharti AXA insurance, and Deepak Dube, Sneha and Pooja of PNB MetLife Insurance are accused persons in this case.

They alleged to have sold an online policy to the victim, posing as IRDAI officials. Policy documents were sent from the purported email of bhartiaxa@aol.com.

According to reports, the cheats duped the victim of nearly Rs 19 lakh with enticing offers of Rs 71.87 lakh, an interest free loan of Rs 12 lakh and lifelong pension. The victim was contacted over a period of time between June 2020 and March 2021.

It is a matter of grave concern that insurance firms are not acting swiftly when their names and brands are blatantly misused to cheat people. Here, employees of insurers are allegedly the accused.

Consistent media campaign on insurance products can possibly educate customers and spread awareness about genuine policies and rewards

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