Reliance Life files complaint against fraud call centres

Fraudsters offered interest-free loans among other products to customers

Reliance Life Insurance has filed about 190 complaints against fraud call centres and spurious callers offering lucrative loans or gains with the policy. Spurious calling is a term used by the insurance industry to refer to a group of fraudsters who call customers posing as representatives or employees of a company and lure customers into buying insurance products by making false and bogus offers.

Anup Rau, CEO, Reliance Life Insurance said that spurious calling is an industry problem and the industry is taking steps to curb this menace.

"We have been receiving several queries from customers who are getting spurious calls with unrealistic offers, including interest-free loans and extraordinary bonuses. We have launched public awareness campaigns across the country to inform customers of such bogus calls that are aimed to mislead them," said Rau.

Reliance Life Insurance, along with the insurance industry, has also formally filed a complaint with the Economic Offences Wing (EOW), seeking its help to act against the spurious callers. Further, the company has set up a call-back system that helps in issuing the policy only after ascertaining that the proposer has understood the benefits and terms of the policy.

The modus operandi of these frausters is very distinct. First, the customers get a call from a person claiming to be an employee or agent of the company. They are then offered a bogus offer, interest free loan, additional bonus among others, to get them interested. Then they are asked to pay minimum% of the offer amount quickly to avail the facility. After this, runners/field staff is sent to collect cheques/cash and documents.

Customers usually do not complete their application forms and the fraudulent agency fills fictitious data and get a policy issued earning hefty commissions. The group moves to different set of customers with new numbers leaving the earlier customers in lurch.

"We have a robust process to help our customers choose and get the right product. Customers, however, on their part also have to be alert and not to fall prey to any person or entity making fraudulent offers of lucrative loans or gains. Simple rules of filling in form with complete and accurate details, understanding the policy terms and benefits, safeguarding ones money against bogus claims, and using only cheques for any transaction are some of the checks and balances in the interest of the customers," Rau added.