Scam Alert: Unknown calls, fake refunds, and false promises: insurance policyholders need to be vigilant..

Insurance-related fraud cases are rapidly increasing in the country, with fraudsters posing as insurance ombudsmen or government representatives to lure people with promises of refunds. In a recent case, a man received a call informing him that his life insurance policy, taken out in 2009 for ₹50,000, which had subsequently lapsed, had now grown to ₹5 lakh, and the government wanted to return the money. However, the condition was that he would first have to purchase a new policy; only then would the money be transferred and returned within 30 days.

According to insurance experts, this is a complete scam, and this pattern is currently the most common type of insurance fraud. Fraudsters often obtain data on old policies through various means. They have information such as the policyholder's name, insurance company, year of purchase, and even the premium amount, which makes their claims seem credible.

The reality is that no government agency, insurance regulator, or insurance ombudsman calls policyholders to offer refunds. The government neither calls anyone directly, nor does it ask anyone to buy a new policy for a refund, nor does it ask for any money to be deposited. Experts say that claims like "the government is returning your insurance money" are simply tactics to trap people.

According to insurance policy rules, if a regular (non-ULIP) policy lapses and has not accumulated any surrender value, the money is usually not returned. In the case of ULIP policies, the fund value is held in a discontinuance fund, which can be withdrawn after five years with certain deductions. In any case, it is impossible for ₹50,000 to automatically become ₹5 lakh.

Do not trust unknown calls.
Experts advise that for any information related to your policy, contact only the official website or customer care of your insurance company. Do not trust unknown calls, do not share OTPs or documents, and do not make any payments in the name of a refund. This case serves as yet another warning that greed and haste in insurance matters often lead to fraud. Be vigilant, do your research, and only trust official channels.

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