Irda alert against false sale calls

Mumbai: After detecting fraudulent instances on similar lines that had hit Citibank’s wealth management operations in the country, the insurance regulator has filed a police complaint in New Delhi.

Issuing alerts to the insurers, Irda has said it has received complaints from various individuals about certain spurious calls about selling insurance products by Irda directly.

While Irda has already filed a police complaint at New Delhi and also issued a notice cautioning the public regarding such callers, it is necessary for the insurers, too, to get this matter investigated and initiate necessary action. Irda had already written to some of the insurers whose names these callers are purported to have used. The insurers are advised to initiate necessary steps to help eliminate this menace wherever such calls are received from members of the public trying to verify the authenticity of such calls

Speaking to FE, J Harinarayan, chairman, Irda said after receiving some...complaints, Irda has filed a police complaint at a police station in New Delhi. “We got complains that that some unknown persons claiming themselves from Irda's agent are trying to sell life insurance products. Irda is regulatory body and has nothing to with selling products. We have also sent advisory notices to the insurers about this.”

Rajesh Sud, MD, Max NY Life confirmed, “We have received an advisory notice from the Irda. But, let me tell you that we have put in place a strong compliance since the day one. Also, we have got a strong distribution standard team which acts as an internal watchdog and can do things like random checks and data analyses of our agents, if need arises so.”

Met Life has also issued detailed norms to its staffers for streamlining its marketing practices. It has asked its agents to make recommendations and present products.based on an analysis of the insurable needs or financial objectives of the customer. The company has asked its sales force not to provide wrong information and/or suppression of relevant and correct information to the customers on the product features (including premium paying term), benefits and charges and project the insurance product as other financial products like fixed Deposit and /or mutual funds. Any violation to the expected code of conduct in business solicitation, which includes misselling, misrepresentation and other unethical practice, either directly or indirectl would be viewed very seriously. The company would initiate appropriate legal actions, including but not limited to lodging of police complaints, termination of service against the persons involved.

Irda alert against false sale calls