Insurance Scam - Prudential India

India Government informed the Parliament on Tuesday (March 23, 2021) that the Insurance Regulatory and Development Authority of India (IRDAI) has reported receipt of 316 complaints from 250 policyholders in the last seven years alleging mis-selling of insurance products by some salespersons of ICICI Bank and ICICI Prudential Life Insurance Company.

The Reserve Bank of India (RBI) has also reported receipt of one complaint alleging the issue of insurance policy in place of Fixed Deposit. Government's reply came in response to a question on “whether Government is aware of complaints of fraud against ICICI Bank and ICICI Prudential for issuing life insurance policies to poor farmers in the garb of fixed deposits".

IRDAI has informed that the complaints were taken up and the ICICI Prudential Life Insurance Company has reported resolution of all 316 complaints. The insurance company has refunded an amount of Rs 2,93,62,385 in 254 cases while declining refund in 23 cases. Other actions taken by the insurance company for the resolution of the complaints also included the change of product in remaining cases.

In the case of selling of Fixed Deposit in lieu of insurance policy - RBI has reported regarding the complaint received that the premium amount of Rs 2,00,000/- received from the customer was refunded by the ICICI Prudential Life Insurance Company.