Fraud by Luring Customers with Interest-Free Loans

Insurance Policies Worth Lakhs Sold Misleadingly

Pune: A case has come to light where an insurance agent allegedly misled a customer by offering fake promises of zero-interest loans against insurance policies and sold policies worth lakhs in premium. To prevent others from falling victim, Amit Joshi, who was affected by this fraud, held a press conference and exposed the agent’s modus operandi. He also appealed to insurance companies to regulate such agents and urged customers to stay cautious of false promises.

Joshi was approached by an agent from Star Eureka Insurance Marketing Company regarding purchasing insurance policies. The agent lured him by claiming that he would get a loan up to ten times the policy amount at zero percent interest by mortgaging the policies. However, no such loan was ever provided.

On the pretext of offering a loan, the agent sold multiple insurance policies from four to five different companies to Joshi. Upon realizing the fraud, Joshi contacted the respective companies and informed them. Except for Max Life Insurance, other companies refunded the premium amounts. However, Max Life has allegedly delayed refunding a total premium of ₹65 lakh for six policies, Joshi stated during the press conference.

A case of fraud has been registered at Dattawadi Police Station based on Joshi’s complaint. Additionally, he has approached the consumer court, and the hearing is currently underway.
Joshi also expressed suspicion that the agent may have manipulated his income documents, as policies with higher premiums than his eligible income limit were issued to him.

Following persistent follow-ups by Joshi, Star Eureka Insurance Marketing Company acknowledged their employee’s mistake in writing and assured on March 6, 2023, that the ₹65 lakh invested in Max Life Insurance would be refunded soon. However, the amount is still pending.

Joshi also pointed out that customers have a 15-day window to cancel a policy, but agents often avoid calls during this period to prevent cancellations.

He urged customers to remain vigilant while investing in insurance or any financial schemes and not to fall for false promises of large interest-free loans. He also demanded strict action against agents who mislead customers for high commissions and requested that his pending amount from Max Life Insurance be refunded.