Lok Sabha Question No. 2142 (UNSTARRED), answered on 2016-05-06
Subject: Fake Insurance Companies
Ministry: FINANCE
Asked by: SUKENDER REDDY GUTHA

Government of India Ministry of Finance Department of Financial Services Lok Sabha Unstarred Question No. 2142

To be answered on Friday, May 6, 2016/Vaisakha 16, 1938 (Saka)

## Fake Insurance Companies

## 2142. Shri Gutha Sukender Reddy:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government/Insurance Regulatory and Development Authority (IRDA) is aware of fake insurance companies proliferating in the country by alluring the policy holders to return their money paid to these companies in case of default;
- (b) if so, the details thereof;
- (c) whether the Government has identified any fake insurance companies so far, if so, the details thereof, State/UT-wise including Delhi; and
- (d) the steps taken/being taken by the Government to curb such illegal insurance companies?

## Answer

## Minister of State in the Ministry of Finance (Shri Jayant Sinha)

- (a)& (b) As per Insurance Regulatory and Development Authority of India (IRDAI), certain sets of individuals are involved in making spurious calls to the policyholders with a view to allure them with offers which are beyond the scope of insurance policies. The Authority has also received complaints from policyholders and other members of public in this regard. The details of complaints received in this regard insurer wise and State/UT wise are given in Annexure-I & Annexure-II respectively.
- (c) IRDAI has not identified any fake insurance company so far.
- (d) IRDAI has taken various steps including publication of handbooks, promotion of right selection tips for purchase of insurance policies through print media, electronic media and social media for educating the general public.

The Authority has also reviewed grievance redressal systems followed by various insurers and instructions are issued from time to time to put in place a policy on handling spurious call complaints and mis-selling complaints.

*****

| Spurious calls or Hoax Calls - Insurer Wise Annexure I   | Spurious calls or Hoax Calls - Insurer Wise Annexure I   | Spurious calls or Hoax Calls - Insurer Wise Annexure I   | Spurious calls or Hoax Calls - Insurer Wise Annexure I   | Spurious calls or Hoax Calls - Insurer Wise Annexure I   |
|----------------------------------------------------------|----------------------------------------------------------|----------------------------------------------------------|----------------------------------------------------------|----------------------------------------------------------|
| S. No                                                    | Insurer Name                                             | 2015-16                                                  | 2014-15                                                  | 2013-14                                                  |
| 1                                                        | AEGON Religare Life Insurance Company Limited            | 621                                                      | 793                                                      | 537                                                      |
| 2                                                        | Aviva Life Insurance Company India Limited               | 20                                                       | 41                                                       | 72                                                       |
| 3                                                        | Bajaj Allianz Life Insurance Company Ltd                 | 175                                                      | 254                                                      | 316                                                      |
| 4                                                        | Bharti-Axa Life Insurance Company LTD                    | 73                                                       | 96                                                       | 89                                                       |
| 5                                                        | Birla SunLife Insurance Company Limited                  | 1452                                                     | 1801                                                     | 1262                                                     |
| 6                                                        | Canara HSBC Oriental Bank of Commerce Life               | 26                                                       | 120                                                      | 50                                                       |
| 7                                                        | DHFL Pramerica Life Insurance Co. Ltd.                   | 34                                                       | 73                                                       | 53                                                       |
| 8                                                        | Edelweiss Tokio Life Insurance                           | 11                                                       | 16                                                       | 17                                                       |
| 9                                                        | Exide Life Insurance Company Limited                     | 53                                                       | 41                                                       | 29                                                       |
| 10                                                       | Future Generali India Life Insurance Company Ltd.        | 119                                                      | 106                                                      | 14                                                       |
| 11                                                       | HDFC Standard Life Insurance Co. Ltd                     | 75                                                       | 272                                                      | 402                                                      |
| 12                                                       | ICICI Prudential Life Insurance Company Ltd              | 595                                                      | 1073                                                     | 701                                                      |
| 13                                                       | IDBI Federal Life Insurance Co Ltd                       | 10                                                       | 1                                                        |                                                          |
| 14                                                       | IndiaFirst Life Insurance Company Limited                | 561                                                      | 184                                                      | 97                                                       |
| 15                                                       | Kotak Mahindra Old Mutual Life Insurance Ltd.            | 12                                                       | 47                                                       | 95                                                       |
| 16                                                       | Life Insurance Corporation of India                      | 43                                                       | 149                                                      | 128                                                      |
| 17                                                       | Max Life Insurance Company Limited                       | 3636                                                     | 2633                                                     | 2022                                                     |
| 18                                                       | PNB MetLife India Insurance Company Ltd.                 | 162                                                      | 522                                                      | 421                                                      |
| 19                                                       | Reliance Life Insurance Company Limited                  | 571                                                      | 924                                                      | 685                                                      |
| 20                                                       | Sahara India Life Insurance Co. Ltd.                     |                                                          | 1                                                        |                                                          |
| 21                                                       | SBI Life Insurance Co. Ltd.                              | 61                                                       | 159                                                      | 172                                                      |
| 22                                                       | Shriram Life Insurance Company Ltd.                      | 1                                                        | 19                                                       | 22                                                       |
| 23                                                       | Star Union Dai-ichi Life Insurance Company Limited       | 7                                                        | 55                                                       | 20                                                       |
| 24                                                       | Tata AIA Life Insurance Company LTD                      | 771                                                      | 614                                                      | 155                                                      |
| Grand Total                                              | Grand Total                                              | 9089                                                     | 9994                                                     | 7359                                                     |

| Spurious calls or Hoax Calls - State Wise-Annexure II   | Spurious calls or Hoax Calls - State Wise-Annexure II   | Spurious calls or Hoax Calls - State Wise-Annexure II   | Spurious calls or Hoax Calls - State Wise-Annexure II   | Spurious calls or Hoax Calls - State Wise-Annexure II   |
|---------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|
| S. No                                                   | State Name                                              | 2015-16                                                 | 2014-15                                                 | 2013-14                                                 |
| 1                                                       | Andaman& Nicobar Islands                                | 20                                                      | 2                                                       | 24                                                      |
| 2                                                       | Andhra Pradesh                                          | 493                                                     | 824                                                     | 365                                                     |
| 3                                                       | Arunachal Pradesh                                       | 5                                                       | 7                                                       | 9                                                       |
| 4                                                       | Assam                                                   | 83                                                      | 72                                                      | 55                                                      |
| 5                                                       | Bihar                                                   | 301                                                     | 236                                                     | 137                                                     |
| 6                                                       | Chandigarh                                              | 34                                                      | 45                                                      | 65                                                      |
| 7                                                       | Chattisgarh                                             | 107                                                     | 98                                                      | 66                                                      |
| 8                                                       | Dadra &Nagar Haveli                                     | 3                                                       | 6                                                       | 4                                                       |
| 9                                                       | Daman &Diu                                              | 7                                                       | 6                                                       |                                                         |
| 10                                                      | Delhi                                                   | 515                                                     | 717                                                     | 681                                                     |
| 11                                                      | Goa                                                     | 40                                                      | 41                                                      | 26                                                      |
| 12                                                      | Gujarat                                                 | 577                                                     | 612                                                     | 552                                                     |
| 13                                                      | Haryana                                                 | 390                                                     | 421                                                     | 434                                                     |
| 14                                                      | Himachal Pradesh                                        | 61                                                      | 97                                                      | 98                                                      |
| 15                                                      | Jammu &Kashmir                                          | 32                                                      | 58                                                      | 65                                                      |
| 16                                                      | Jharkhand                                               | 123                                                     | 97                                                      | 102                                                     |
| 17                                                      | Karnataka                                               | 520                                                     | 509                                                     | 210                                                     |
| 18                                                      | Kerala                                                  | 94                                                      | 60                                                      | 31                                                      |
| 20                                                      | Madhya Pradesh                                          | 306                                                     | 281                                                     | 207                                                     |
| 21                                                      | Maharashtra                                             | 2131                                                    | 2615                                                    | 1890                                                    |
| 22                                                      | Manipur                                                 | 9                                                       | 5                                                       | 2                                                       |
| 23                                                      | Meghalaya                                               | 5                                                       | 6                                                       | 2                                                       |
| 24                                                      | Mizoram                                                 |                                                         | 3                                                       | 1                                                       |
| 25                                                      | Nagaland                                                | 4                                                       | 2                                                       | 1                                                       |
| 26                                                      | Orissa                                                  | 172                                                     | 168                                                     | 79                                                      |
| 27                                                      | Pondicherry                                             | 11                                                      | 9                                                       | 6                                                       |
| 28                                                      | Punjab                                                  | 275                                                     | 353                                                     | 360                                                     |
| 29                                                      | Rajasthan                                               | 460                                                     | 606                                                     | 468                                                     |
| 30                                                      | Sikkim                                                  | 5                                                       | 4                                                       | 4                                                       |
| 31                                                      | Tamil Nadu                                              | 334                                                     | 202                                                     | 91                                                      |
|                                                         | Tripura                                                 | 9                                                       | 7                                                       | 1                                                       |
| 32 33                                                   | Uttar Pradesh                                           | 794                                                     | 990                                                     | 753                                                     |
| 34                                                      | Uttarakhand                                             | 116                                                     | 125                                                     | 99                                                      |
| 35                                                      | West Bengal                                             | 718                                                     | 710                                                     | 471                                                     |
| 36                                                      | Telangana                                               | 335                                                     |                                                         |                                                         |
| Grand Total                                             | Grand Total                                             | 9089                                                    | 9994                                                    | 7359                                                    |