How We Helped an NRI Recover ₹5 Lakhs from Fake Loan Insurance

By B S Makar, Advocate
Founder – Complete Insurance Solution & B S Makar Advocates and Solicitors
Punjab & Haryana High Court, Mohali
📞 +91 9878131111 | 🌐 www.makarlaws.com

🚨 The Case: An NRI Targeted by a Fake Loan Insurance Scam

In early 2024, we were approached by Mr. Sandeep Sharma (name changed for privacy), an NRI residing in the United Kingdom. He had fallen victim to a sophisticated financial scam that falsely promised an interest-free loan of ₹10 lakhs. The catch? He was asked to first purchase life insurance policies as a “security requirement” to qualify for the loan.

Sandeep, unaware of the fraud, ended up paying over ₹5 lakhs in premiums for five different policies issued by multiple insurers. These were arranged by agents claiming to represent reputed financial institutions like Bajaj Finance and HDFC Bank. The fraudsters used forged documents, fake calls, and pressure tactics to extract money in the name of formalities.

🕵️ Our Investigation: Tracing the Scam

When Sandeep contacted our legal team, we immediately:

1. Reviewed All Policy Documents: We analyzed each policy issued and confirmed that all were sold under misrepresentation and without valid consent.
2. Identified the Brokers and Agents Involved: Most of the policies were issued through specific IRDAI-registered brokers whose agents violated multiple regulatory norms.
3. Gathered All Evidence: We compiled payment receipts, call recordings, policy documents, and fake loan offer letters.
4. Mapped the Violations: We found strong grounds under:
   • Bharatiya Nyaya Sanhita (BNS) 2023 – Sections 316 (cheating), 336 (forgery), 342 (electronic forgery), 111 (organised crime)
   • Consumer Protection Act, 2019
   • IRDAI Regulations

🔧 Legal Action Initiated

1. Complaint to Cyber Cell: We filed a formal complaint with the cybercrime portal and the 1930 helpline, leading to a freeze on some accounts linked to the fraud.
2. Written Complaint to IRDAI and Insurers: We prepared a detailed complaint highlighting fraud, mis-selling, and breach of consent. We demanded cancellation of policies and refund of all premiums.
3. Legal Notice to Insurance Companies and Brokers: The notice warned of civil and criminal action if refund was not processed.
4. Police FIR Under BNS: An FIR was filed invoking Sections 316, 336, 342, and 111 of the BNS, 2023.

🚀 The Result: Full Refund and Policy Cancellation

Within 5 weeks of legal intervention:

• All five policies were cancelled.
• Mr. Sharma received a full refund of ₹5,12,000.
• An internal investigation was initiated against the brokers and agents.

⚡ Key Takeaways for NRIs:

1. No genuine lender will ever ask for insurance policies as a loan condition.
2. Verify the identity of the caller and check the agent’s IRDAI license number.
3. Always ask for written loan offers on company letterheads with proper contact details.
4. Never transfer money to personal accounts of agents.
5. Act fast – report fraud to 1930, cybercrime.gov.in, and seek legal help immediately.

📈 Final Word: Legal Action Works

This case is proof that legal awareness and timely action can recover even large amounts lost to financial fraud. At B S Makar Advocates and Solicitors law firm, we are committed to protecting NRIs and vulnerable policyholders from corporate scams, fake loan schemes, and mis-selling by unauthorized agents.

If you or someone you know has been defrauded, do not suffer in silence.

Contact Us:
👨‍⚖️ B S Makar, Advocate
📞 +91 9878131111 | 🌐 www.makarlaws.com
Protecting policyholders across India and abroad.