The Delhi Police has a public advisory warning citizens about a surge in insurance-related phone scams. These frauds typically involve callers pretending to be officials from insurance companies or regulatory bodies like LIC or IRDAI, and attempting to extract personal and financial information from unsuspecting policyholders. Victims are often lured by false promises of unclaimed bonuses or threatened with policy cancellations. The police have urged people to stay vigilant and report such fraud promptly.
Here’s everything you need to know about Insurance scams and also we’ve shared some tips that can help you stay protected from these scams.
What is an Insurance scam?
Insurance scams are fraudulent schemes where con artists impersonate representatives of legitimate insurance companies or government bodies. Their goal is to deceive policyholders into revealing sensitive information or transferring money under false pretences. The scammers often use official-sounding language and caller IDs that mimic real organisations to build trust quickly.
These scams exploit the complexity of insurance terms and the lack of public awareness, particularly targeting senior citizens or long-time policyholders. In most cases, the scammer claims there is a bonus, dividend, or refund that needs to be claimed urgently or will be redirected to an insurance agent if no action is taken.
Insurance scam: How it works
Scammers contact individuals by phone and create urgency or fear to manipulate them. The Delhi Police has highlighted several examples to help the public identify common fraudulent tactics:
Fake Call 1: “We are from LIC service branch. Transfer your existing policy to a new one for better returns.”
Fake Call 2: “An unclaimed annual equity bonus is in your account. Deposit money to prevent it from being redirected to your agent.”
Fake Call 3: “Your insurance agent bought a policy from another company. Deposit money to transfer its dividends to you.”
Fake Call 4: “You’re eligible for a loyalty bonus, but it was sent to your agent’s code. Provide your policy details to correct this.”
Fake Call 5: “We’re from the Insurance Verification Department. Share your PAN, Aadhaar, and bank details to complete verification.”
Fake Call 6: “Your policy is about to be cancelled. Share your details and secure code to prevent the transfer of funds to your agent.”
Fake Call 7: “Raise an objection against bonus cancellation by sending ₹30,000 with your PAN and Aadhaar.”
Fake Call 8: “Provide your policy details or your pension and payments will be blocked.”
Fake Call 9: “Your policy has lapsed. Stop paying premiums and purchase a new one.”
Fake Call 10–13: Promises of profit-making new policies, refunds, or moral help to recover money lost through previous policies.
These frauds use emotional manipulation, such as fear of financial loss or greed for bonus payouts, to trick victims into giving up sensitive details or sending money.
Tips to stay protected from insurance scam
To help citizens safeguard themselves against such scams, Delhi Police and financial experts have shared key precautionary measures:
Do not respond to unsolicited calls offering policy transfers, unclaimed bonuses, or urgent actions.
Visit your insurance provider directly for any concerns or queries. Never trust third-party calls for critical financial actions.
Avoid making payments via cash or wire transfer. Always pay using cheques or credit cards, which offer traceability.
Do not share personal information like PAN, Aadhaar, policy number, bank details, or CVV over the phone.
If you suspect fraud, inform your insurer immediately and request they investigate.
Instruct your bank to stop any payment made towards the scam if you realise it in time.
Collect all communication records, including emails, SMS, and call logs, related to the fraud.
File a complaint at your nearest police station or cybercrime department or dial 1930 with all supporting documents, including bank statements of the last six months.
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