• Apply Now

Money in bank in 24 hours

Apply Now

Fraud & Forgery: Types of Life Insurance Frauds & How to Avoid Them

  • Highlights

  • Life insurance scams are phishing attempts that lure unsuspecting internet users to part with personal and financial data

  • Beware of fake life insurance websites; these are made to resemble genuine insurance companies but are attempts to defraud you

Life Insurance Fraud
“Congratulations. You are now eligible for INR 5 crore insurance cover. Sign up now. Premium of INR 100 pm”

We have been receiving similar text messages, emails, and social media advertisements all too often. Life insurance scams and phishing attempts have become common. To keep us financially protected from ruthless fraudsters, we must learn to identify these scams and avoid falling prey to them.

Scam call

Types of Life Insurance Frauds

  1. Fake websites – Fake websites are the commonest internet frauds. Look out for emails or social media advertisements with incorrectly spelt links, prompting you to sign up with your credit card or bank account details. Many of these promise zero documentation, zero health check, and no KYC insurance availability. These are likely fraudulent websites looking at collecting your personal and financial information.


  2. Email fraud - You receive an email from a life insurance company claiming that there is a problem with your life insurance policy or that your policy has lapsed due to an unpaid premium. The email prompts you to make a payment to restart your policy. These payments are often sought by scammers.


  3. Beneficiary payment fraud – You receive an email or a text message which says that you are the life insurance beneficiary for a distant relative or even an unknown person. The so-called “insurance company” now asks you to claim the amount you need to make a down payment or pay a processing fee. This is usually a scam because insurance companies do not ask beneficiaries to pay any fee.


  4. Unbelievable premium rates – This is one of the common misleading life insurance advertisements you may find on social media sites. These quote unbelievably low premium and often state that these are the best underwriting class rates, meaning that only very few people may be able to get a policy at this rate.


  5. Personal data fraud – Another common insurance fraud is related to the collection of personal and financial data in exchange for “instant quotes”. Most reputed insurance companies or NBFCs such as Bajaj Finserv do not offer instant quotes.


Here are a few tips to identify and stay safe from life insurance fraud –

website Insurance Fraud

  • Never click on links sent through text, email, or instant messaging apps from unknown or unverified sources


  • Verify the website address, spelling, and security protocol (HTTPS) before sharing your name or personal information in exchange for a life insurance quote


  • If it is too good to be true, it probably is. Do not believe unrealistically low quotes and fall prey to prompts asking you to act urgently


  • Life insurance companies or NBFCs such as Bajaj Finserv do not charge fees or down payments to release insurance claims to beneficiaries


  • Do not share your financial details such as bank account login, OTP, CVV, etc., with anyone. Share personal details such as name, phone number, etc., only with verified NBFCs or insurance company contacts


It is important to remember that our financial safety is in our hands, much as the well-being of our loved ones as covered by life insurance. If you think you have fallen for a scam, register a complaint with the nearest police station and write to www.bajajfinserv.in/reach-us

Savdhaan Rahein. Safe Rahein.

In case you have any service concern, you may please reach out to Bajaj Allianz Life Insurance’s grievance redressal team through any of the following options:

 

How would you rate this article

 Please let us know why?

What did you dislike?

What did you dislike?

What did you like?

What did you like?

What did you like?