Insurance Refund Scam: Experts Warn Against Fake Bima Lokpal Calls – All You Need To Know

A new wave of insurance fraud is targeting policyholders through deceptive calls purportedly from "Bima Lokpal," India's insurance ombudsman. Experts are warning individuals to be cautious of these fraudulent schemes that aim to swindle money by promising refunds on lapsed insurance policies.

How the Scam Works

Scammers typically contact individuals with lapsed life insurance policies, claiming that the government or Bima Lokpal is offering a refund of unclaimed insurance money. They often possess details about the policyholder's previous policies, such as the insurer's name, purchase year, and premium amount, making the call seem legitimate.

The fraudsters then insist that to process the "refund," the policyholder must purchase a new insurance policy. They promise that the money from the old policy will be transferred to the new one and refunded within a short period, such as 30 days. In some instances, they may request a small "processing fee" to unlock benefits like a No Claim Bonus or maturity refund, only to ask for more payments later.

Red Flags to Watch Out For

Several red flags can help identify these fraudulent calls:

• Unsolicited calls: Any unsolicited call claiming to be from a government body or Bima Lokpal should be treated with suspicion.
• Demands for new policies: Requests to purchase a new policy to release a refund are a clear indication of a scam.
• Exaggerated promises: Be wary of exaggerated promises of large returns on your original premium.
• Requests for personal information: Never share personal information, OTPs, or bank details with unsolicited callers.
• Urgency: Scammers create a sense of urgency to pressure victims into making quick decisions.
• Claims of representing official authorities: Fraudsters may pretend to be from IRDAI or large insurers like LIC and may even send fake PDFs or ID cards to prove their identity.

Protecting Yourself from the Scam

Experts emphasize that no government organization, regulator, or the Bima Lokpal ever calls policyholders to refund money or asks for payments to release funds. Any claim that the "government wants to return your insurance money" is false.

To protect yourself from these scams, it is crucial to:

• Verify information: Always verify directly with the insurer or through official websites before taking any action.
• Ignore unsolicited calls: Do not entertain unsolicited calls claiming to be from Bima Lokpal or any government agency.
• Never share personal details: Never share your personal, financial, or policy-related information with unknown callers.
• Report suspicious calls: Report any suspicious calls to the IRDAI's Grievance Redressal portal or to the cybercrime authorities.

If You've Been Scammed

If you have already fallen victim to this scam, contact your bank immediately and lodge a cyber complaint. You can also report the incident to the cybercrime authorities by calling 1930 or filing a complaint on www.cybercrime.gov.in.

By staying informed and vigilant, policyholders can protect themselves from these fraudulent schemes and avoid financial loss.