Page 9 - Life Insurance Today OCTOBER 2017

Insurance Regulatory and Development Authority (IRDA) is a Why Spurious Calls?
regulatory body established by an Act of Parliament to protect
In 2010-11, it was observed that members of general
the interests of the policyholders, to regulate, promote and
public were receiving calls from individuals who claim to
ensure orderly growth of the insurance industry and for
be representatives of IRDAI and offering insurance policies
matters connected therewith or incidental thereto. The IRDA different insurance companies with various benefits.
does not involve directly or through any representative in sale However, the problem was not very serious in nature.
of any kind of insurance or financial products. Any person However, to caution members of public IRDAI first issued
making any kind of transaction with such individuals/agents a public notice on November 1, 2010 informing the general
will be doing the same at their own risk. public that IRDA is a regulatory body which does not
involve directly or through any representative in sale of any
The Regulator has asked insurance companies to warn kind of insurance or financial products.
their customers against falling prey to fictitious calls and
false offers. IRDA or its officials do not involve in activities Any person making any kind of transaction with such
like sale of any kind of insurance or financial products nor individuals/agents will be doing the same at one's own
invest premiums. It does not announce any bonus. Insurers risk. It was also advised that if any member of the public
have been asked to include the above messages, along notices such instances he/she may lodge a police
with voice-over of this content in clear terms with every complaint in the local police station. This was followed by
advertisement/commercial issued in electronic media (TV/ issuing public caution in newspapers for greater reach.
With the introduction of Do Not Call Registry and the
cinema halls, etc).
coming into force of the "The Telecom Commercial
Communication Customer Preference Regulations, 2010"
This new technique of making easy money could only be
with effect from 27th September, 2011 provided
developed because there are many dissatisfied customers
protection to telecom customers from unsolicited
who have invested money without having complete
commercial calls.
knowledge of insurance industry. There are many
Insurance Companies in India and millions of agents,
The calls contain offers of benefits of huge amounts to be
advisors and franchisees working for these companies to released by authorities. As a pre-requisite for such
make good money out of pockets of investors. payment, the callers insist upon fulfilment of formalities
which include furnishing documents of identity proof and
In most of the cases the customers are sold policies without address proof, details of bank account, banking username,
giving them required knowledge and without disclosing the password, PIN etc. and finally insisting upon payment of
details regarding commissions, type of investment, term of money for fulfilling certain regulatory requirements. The
policy, lock in period, risk factors, maintenance charges, payments are made mostly in cash or sometimes through
premium allocation charges, administration charges, cheque or net banking. The gullible persons who respond
surrender charges, mortality charges, switching charges, to such calls and who are lured by such offers lose their
partial withdrawal charges, fund money and trust in the financial system.
management charges and
miscellaneous charges.

At the time of maturity or surrender
of a policy when policy holders do
not get what they have been
committed at the time of selling a
policy, they get frustrated and feel
cheated. And this frustration makes
them victim of such fake calls where
they lose more money in hope of
getting benefit from existing
computer.

Life Insurance Today October 2017 9

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