Imagine receiving a call about an old life insurance policy you had forgotten. The caller says they are from "Bima Lokpal" and informs you that the government is returning unclaimed insurance money. They claim your initial premium of ₹50,000 has ballooned to ₹5 lakh. But there is a catch. You must first buy a new policy to get this refund, with the money transferred within 30 days. Sounds too good to be true? That is because it is a scam.
Why This Insurance Fraud Is So Common
This type of fraud preys on policyholders who let their insurance lapse years ago. Scammers often access old policy data illegally. They speak with confidence, knowing details like your insurer's name, the policy purchase year, and the premium amount. This creates a false sense of trust, making the call seem legitimate. Many people fall into this trap because the caller appears well-informed and authoritative.
Government Bodies Do Not Make Such Calls
No government organization, regulator, or Bima Lokpal ever calls policyholders to refund money. The claim that the "government wants to return your insurance money" is completely false. Government agencies do not contact customers directly, route refunds through new policies, or ask for payments to release funds. If you need to check any information, it is always available on the official website of your insurer or the regulator. You can access this yourself without any intermediary.
Major Red Flags in This Scam
One glaring red flag is the request to buy a new policy so that the alleged amount can be transferred and refunded later. Genuine insurance or refund processes never operate this way. Once you pay for a new policy, that money is usually irrecoverable. The promised refund never arrives, leaving you out of pocket.
How Lapsed Policies Actually Work
Understanding lapsed policies is crucial. In non-Unit Linked Insurance Plan policies, such as traditional endowment or money-back plans, if a policy lapses before acquiring a surrender value, the money is generally lost. For ULIP policies, when a policy lapses, the existing fund value moves to a discontinuation fund. This amount can only be withdrawn after five years, with applicable charges deducted. In neither case does money magically grow from ₹50,000 to ₹5 lakh. Such exaggerated figures are purely used to lure policyholders into making quick decisions.
Steps to Protect Yourself from Insurance Fraud
The safest action in such situations is to directly contact your insurance company through its official customer care channels. Verify the policy's status, check if any fund value exists, and confirm whether any payments are due. Never rely on unsolicited calls. Do not share one-time passwords or documents. Avoid making payments based on promises of refunds. Urgency and guaranteed windfalls in insurance are almost always signs of a scam.
This fraudulent call should serve as a warning. Always verify information directly with your insurer or through official websites. By staying vigilant, you can protect your hard-earned money from such deceptive schemes.
