"Hello Mr. Varun, I am calling from the IRDAI. We have a new insurance plan for you. You will have to return your existing policy so that we can send you a new one with more benefits. Let me take you through the process." said the caller.
Luckily Varun was aware that IRDAI doesn't sell insurance and never calls policyholders.
He knew that IRDAI only regulates the insurance industry. He reported this call to the police.
However, most policyholders are not aware of these things and fall into this trap. They either end up divulging critical financial information or get duped into buying an additional insurance policy.
Here's a more detailed account of the IRDAI:
What is the IRDAI?
The Insurance Regulatory and Development Authority (IRDAI) of India is an independent body created to protect the interests of policyholders, to regulate, promote and ensure orderly growth of the insurance industry in India.
What does the IRDAI do?
The activities of the IRDAI are governed by Section 14 of the IRDAI Act, 1999. It states the duties, powers and functions of IRDAI. These include:
1. Registering and Regulating Insurance Companies:
The IRDAI regulates insurance companies overseeing premium rates and terms of non-life insurance covers, specifying financial reporting norms of insurance companies, and setting up licensing norms.
2. Protecting Policyholders' Interests:
The IRDAI's other equally important function is protecting your interests. It does this by regulating the investment of your funds by insurance companies and by ensuring that insurance companies maintain their solvency ratio so your interests are safeguarded.
However, none of its activities include selling or promoting any insurance policies.
So, the next time you receive a call/ message/email from someone posing as an IRDAI representative, seeking your personal insurance details, contact the police or register a complaint with the IRDAI. Call the Toll Free Number 155255 (or) 1800 4254 732 or report the incident at firstname.lastname@example.org.