8/12/2019 IRDA Memorandum
1/3
Date: Apr 12, 2014To,The Chairman,Insurance Regulatory and
Development Authority
rd!loor, "arishram #havan#asheer #agh$ydera%ad &00004'u%:
Reliance (i)e and #harti A*A (i)e )raud selling o) li)e insurance
productsDear 'ir,Greetings!Thank you for your response to my RTI
first appeal filed on 13 March 2014 I am alsohappy to read in the
media aout the disclipinary action and fine imposed on
Reliance"o#e$er% I ha$e the follo#ing additional &ueries ased
on the response that the t#oinsurance companies ha$e apparently
sumitted to IR'( I elie$e they are incompleteand need further
e)amination y your office
Reliance *ife+,n 22 (ugust 2013% Reliance *ife has #ritten to
IR'( stating that they ha$erecei$ed 2%141 complaints -ear to 'ate
.-T'/ against the corporate agent ( apitalThey specified that they
do not ha$e any pending complaints "o#e$er% #e continue torecei$e
complaints aout people eing cheated y ( apital and payments
ha$econtinued to e made until as recently as last #eek In this
conte)t it is pertinent to ask +
1 "o# many complaints out of 2%141 recei$ed -T' till 22 (ugust
2013 #ere paid fullrefund of premium
2 "o# many further complaints ha$e een recei$ed y Reliance since
22(ugust 2013until (pril 2014
3 "o# many of these ha$e een paid a full refund and resol$ed
e elie$e that Reliance *ife is only paying ack those consumers
#ho approachMoneylife 5oundation #ith a complaint and #e for#ard
the cases to the company 6$en
here% Reliance no# pays only those customers #ho ha$e taken the
precaution to trap (apital7s agents #ith a $oice recording "o#e$er%
I am sure you #ill agree that not e$ery
8/12/2019 IRDA Memorandum
2/3
consumer has a facility to conduct such a sting operation
I am enclosing a fe# cases #here Reliance *ife has refused the
refund #ithout cleare)planation I re&uest IR'( to seek an
e)planation and to initiate a class8action to help all$ictims of (
apitalReliance *ife has paid o$er Rs2220 lakh to 31 people duped y
( apital% until no# Therefunds ha$e een in the range of Rs30%000 to
Rs2 lakh This suggests a large scale fraudthat has not yet een
fully unearthed
9econdly% there are numerous cases of :interest free loan;
offers y 9ridhar Insuranceroker% #hich makes it a copycat case of (
apital 6$en here% Relaince *ife has madethe necessary refunds to
$ictims of 9ridhar Insurance roker This is e$en #orse than thefraud
y ( apital% ecause% as per IR'(7s o#n rules% an insurance roker is
supposed torepresent the customer and not the insurer e hope IR'(
#ill in$estigate this andinitiate stringent action urgently
harti (
