Got a call about unclaimed insurance money? Don’t fall for this trick

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• Bima Lokpal never calls policyholders to offer refunds or sell new policies.
• Scammers use old policy details to trick people into buying new policies urgently.
• Always verify with your insurer directly; never trust unsolicited refund calls

Did our AI summary help?

Someone says they are calling from “Bima Lokpal” or a government-linked office. They already know details of an old life insurance policy you took years ago. They tell you the policy lapsed, but the premium you paid has supposedly grown into a much larger amount. All you need to do, they say, is buy a new policy so the money can be “transferred” and refunded.

It sounds tempting. It is also completely false.

First things first: Bima Lokpal does not call you

The Insurance Ombudsman, also called the Bima Lokpal, does not call policyholders to offer refunds. No government body, regulator or ombudsman reaches out to individuals and promises them with unclaimed insurance money.

They do not ask you to buy new policies. They do not route refunds through fresh investments. And they certainly do not promise windfalls over phone calls.

Any caller claiming otherwise is lying.

Why these calls sound so real

These scams are effective precisely because the caller sounds extremely confident. Fraudsters often have access to old policy data. They may know your name, the year you bought the policy and even the premium amount. When they give all these details to you over the phone, it lowers your guard.

They also create urgency. You are told the money will be refunded only if you act quickly. This pressure is deliberate. It is meant to stop you from checking independently.

If you feel rushed, that itself is a warning sign.

The biggest red flag: “Buy a new policy to get your money”

There is no legitimate insurance process where you must purchase a new policy to unlock or refund money from an old one. Once you pay for a new policy, the money is usually gone, and the promised refund never shows up.

This “transfer-and-refund” story is entirely made up.

How lapsed policies actually work

If your old policy was a traditional plan like an endowment or money-back policy, and it lapsed before it built any surrender value, the premiums are typically forfeited. There is nothing to refund.

If it was a Unit Linked Insurance Plan (ULIP), the fund value does not disappear. When the policy lapses, the money moves into a discontinuation fund. That amount can be withdrawn only after five years, and only after applicable charges are deducted.

In neither case does Rs 50,000 magically become Rs 5 lakh.

What you should do instead

If you want to know the status of an old policy, contact the insurance company directly. Use the official customer care number or website listed on the insurer’s own page. You can check whether any fund value exists and whether anything is payable.

Do not rely on unsolicited calls. Do not share documents, OTPs or personal details. And never make payments based on promises of refunds.

The bottom line

This is a scam, plain and simple. In insurance, guaranteed windfalls, urgent deadlines and requests to buy new policies to release old money are classic warning signs. When in doubt, cut the call and check directly with the insurer. If the money is real, it will still be there tomorrow.