Date: Apr 12, 2014 To, The Chairman, Insurance Regulatory and Development Authority 3rd Floor, Parishram

Bhavan Basheer Bagh Hyderabad 500004

Sub: Reliance Life and Bharti AXA Life fraud selling of life insurance products
Dear Sir,

Greetings! Thank you for your response to my RTI first appeal filed on 13 March 2014. I am also happy to read in the media about the disclipinary action and fine imposed on Reliance. However, I have the following additional queries based on the response that the two insurance companies have apparently submitted to IRDA. I believe they are incomplete and need further examination by your office. Reliance Life: On 22 August 2013, Reliance Life has written to IRDA stating that they have received 2,141 complaints Year to Date (YTD) against the corporate agent AB Capital. They specified that they do not have any pending complaints. However, we continue to receive complaints about people being cheated by AB Capital and payments have continued to be made until as recently as last week. In this context it is pertinent to ask : 1. How many complaints out of 2,141 received YTD till 22 August 2013 were paid full refund of premium? 2. How many further complaints have been received by Reliance since 22August 2013 until April 2014. 3. How many of these have been paid a full refund and resolved?

We believe that Reliance Life is only paying back those consumers who approach Moneylife Foundation with a complaint and we forward the cases to the company. Even here, Reliance now pays only those customers who have taken the precaution to trap AB Capital's agents with a voice recording. However, I am sure you will agree that not every consumer has a facility to conduct such a sting operation. I am enclosing a few cases where Reliance Life has refused the refund without clear explanation. I request IRDA to seek an explanation and to initiate a class-action to help all victims of AB Capital. Reliance Life has paid over Rs22.20 lakh to 31 people duped by AB Capital, until now. The refunds have been in the range of Rs30,000 to Rs2 lakh. This suggests a large scale fraud that has not yet been fully unearthed. Secondly, there are numerous cases of interest free loan offers by Sridhar Insurance Broker, which makes it a copycat case of AB Capital. Even here, Relaince Life has made the necessary refunds to victims of Sridhar Insurance Broker. This is even worse than the fraud by AB Capital, because, as per IRDA's own rules, an insurance broker is supposed to represent the customer and not the insurer. We hope IRDA will investigate this and initiate stringent action urgently. Bharti AXA Life: From the RTI response I have received the following conclusions can be drawn. On 14 August 2013 IRDA asked Bharti AXA Life to give The data of total no. of complaints of this nature (mobile tower rent offer) received, resolved and pending as on date. Bharti AXA Life has not given the required information. Again, on 1 November (original letter date of 24 October overwritten), IRDA asked the same information to Bharti AXA Life. The RTI response does not indicate any resposne from Bharti AXA . Can one conclude then, that Bharti AXA Life is refusing to answer the regulator's queries? Bharti AXA Life has also offered flimsy reasons for denying the claim of Vishv Raj Singh by questioning whether his sons name is Ominder Rana. The insurer states that customer was instigated by BMA Wealth Insurance broker. In this case, either Bharti ACA is not giving IRDA correct informatioin or action is required against BMA Wealth Insurance. While neither is happening, the customer is denied his claim. We urge you to initiate action that will give justice to the consumer. In another case of Ramswaroop Beniwal, Hanumangarh of Rajasthan, he was sold six policies of Bharti AXA Life of Rs5 lakh annual premium by luring him with the promise of installing an Airtel Tower that would fetch a monthly rental of Rs15 lakh for him in five years. Bharti AXA has brushed away the complaint stating We are declining client concerned and standing on our decision. IRDA has asked for internal investigation report on the complaint of Ramswaroop Beniwal in its letter to Bharti AXA on 1 November (original letter date of 24

October overwritten). We request you to share the conclusion of this investigation and action if any. We request your URGENT attention in this matter and action to protect innocent customers who have been duped by Reliance Life and Bharti AXA Life. We would like to keep working with IRDA to bring to light cases of fraud and misselling in order to benefit consumers through deterrant regulatory action. I am detailing several cases below and have attached the policy number in each case. I would urge your office to please investigate all the complaints in the trail mails below.

1. Vamsidhara Pala (AB Capital) - Policy number: 50670727, 50676972, 50700125, 50724154 and 50759202. 2. Jigar (Chintan) Shah (AB Capital) policy 51058582 3. Mrinalini Kolambkar (AB Capital) policy 50567566 4. Mayur Kolambkar (AB Capital) policy 50549246
With Best Regards,

Sucheta Dalal Trustee Moneylife Foundation .cc Dr. G. Mallikarjun OSD (Grievances) Consumer Affairs Department

AB Capital cases rejected by Reliance Life for refund:

From: mayur kolambkar [mailto:mayurkolambkar@gmail.com] Sent: 24 December 2013 20:13 To: rajpradhan@moneylife.in Subject: Re: Complaint Against AB Capital -Reliance

Hello Team Moneylife, Please find the answers to the questions (1) The details of the agent who called you (Name, Phone No, etc) --A.K.Agarwal from A.B Capital Delhi . Contact Number : 09211130348 (2) The details or Name of the person who came to collect the documents:

--No Details , He called up Mr A.K .Agarwal He handed over the cell phone to me and verified the details . he mentioned that he is from Reliance OP Road office Vadodara.

Thanks and Regards, Mayur Kolambkar From: mayur kolambkar [mailto:mayurkolambkar@gmail.com] Sent: 20 December 2013 20:25 To: rajpradhan@moneylife.in Subject: Re: Complaint Against AB Capital -Reliance

Hi Team Moneylife, i apologize for the delay. Please find the attached policy document and the details : I took 2 policies of premium 20,000 INR (Policy1_Mrinal) for my sister and 30,000 INR (Policy2_Mayur) for myself total amount 50,000 INR . I was assured loan of 5 Lakh INR . I was not provided with any loan reference number . I would like to share the situation as what exactly happened . 1.Agent from AB Capital Delhi gives a call and offers loan 10 times the amount of premium on the basis of policy . 2.I asked and verified the details , he assured that an agent from Reliance will come and take documents and its legal . 3. Agent came to my home in Baroda and collects Documents . I gave him cheque of 30,000 and 20 K were paid by my sister from Pune . 4. After some days i received a call and the agent from Delhi informed me that i will receive a call from some Leagal Insurance authority , a lady will ask questions about purpose of the policy. if any foreign trip , loan offered i was supposed to say NO . I asked him the reason he said the authority do not want to have the loans distributed on policies . That is Reliance's internal initiative to start loan on policies and we are offering it to you . 5 . I received a call from lady in next 15 minutes (she was in contact with him ) and i did as per his instructions . 6. I received a call after 2 - 3 months and i was asked about the loan amount required , I was asked to submit the original policy documents to them . 7. I did not submit the documents , and they did not call me back , i tried to reach the agent many a times but received no response . 8 . I was assured that it is Reliance the only reason why i invested the money . Pay premium for 10 years ,policy outcomes with profit after 15 years will go towards company was the only condition given 8. Now all i get is calls for premium ..

Thanks and Regards, Mayur Kolambkar mayurkolambkar@gmail.com| +91 846.050.4101 From: mayur kolambkar [mailto:mayurkolambkar@gmail.com] Sent: 13 December 2013 05:56 To: foundation@moneylife.in Subject: Complaint Against AB Capital -Reliance

Respected Sir , I referred your page and the comments of other victims of Reliance guaranteed money back interest free loan policy . I received a same phone call from a lady sitting in Reliance office New Delhi . The same Loan scheme ten times the loan of your premium was offered to me.Agent would come to collect documents etc was promised . After giving the cheque I received a call saying that an officer from reliance would give you a call and was told that if they say any loan is offered on policy then i am supposed to deny it .It was recorded. when asked for the reason i was told that the scheme is an internal scheme and it is available for special members only. After that i did not receive any communication from them . I am being forced to pay Premium Please find my contact details below Name : Mayur Mangesh Kolambkar Contact: 08460504101 Address : Vadodara India mayurkolambkar@gmail.com Thanks and Regards, Mayur Kolambkar

From: vamsi pala [mailto:pala.vamsi@gmail.com] Sent: 27 January 2014 14:23 To: foundation@moneylife.in Cc: joscelyn@moneylife.in Subject: Fraudulent Policy done by Reliance Life/AB Capital

Hi, I have attached the front side of the policies done by Reliance life/AB capital fardulently. The Agent called himself as Yashwardhan Takur (called me from his mobile 9958519632, also from some landline number most of the time). The caller calls says he is from Reliance Insurance Company and he promises bonus of 2000 per month on each policy and other stuff and has done these policies. They told there is a verification call which I have to tell in specific way and they ask me to deny everything, that nothing is promised. They even told me that everything was converted into one time.

Reliance has accepted that AB Capital was doing fraud and they have terminated their service but they are not willing to cancel my policies. I am not in a position to pay 2 lakh per Year for these policies. As I am not capable of paying this huge sum. Even after repeated complaints to Reliance about this, I get the call from fraud asking for NOC for cancelling the policies, there is no good response from Reliance. I have decided to take this up further so that nobody can suffer like this. Please help me with this.

From: vamsi pala [mailto:pala.vamsi@gmail.com] Sent: 16 January 2014 04:51 To: foundation@moneylife.in Subject: Fwd: Fwd: Complaint with respect to Reliance Insurance Company Ltd.

Hi, I am really not satisfied with the response from Reliance customer care, Reliance has outsourced its policy business to AB capital, which is a fraud company and they have fraudulently dubbed me into making 5 policies and have promised me with various things, like policies are converted into one time and bonues and others and when I contacted Reliance about this they have told me that it is fraud and they can't do anything about this, as I have contacted them late, I have been contacting them through email and customer care, but when ever I contact them I get fraud call saying that they are from reliance, and most the delay is caused by Reliance customer care that is the reason, this issue is still not resolved. I can't pay the premium for these policies, as I don't have the capacity to pay them. But reliance is trying to keep hold of the amount, they don't want to cancel the policy nor they are doing anything. Reliance empolyee tell that AB capital is fraud company, still Reliance didn't communicate to its customers about this fraud. They want to take hold of the money by fraud and they say the all the unnecessary reasons about this fraud and they are not giving resolution. I would like to help people about the fraud done by Reliance and make aware about how reliance is getting involved in frauds like this and keeping hold of peoples money. Please help me on this.

Thank you, Vamsi Pala.

From: Chintan shah [mailto:shahchintanp07@gmail.com] Sent: 20 December 2013 11:17 To: joscelyn Cc: rajpradhan; sucheta Subject: Re: FW: A Fraud Case from Reliance Life Insurance--- Need Help

Hello Joscelyn,

As required attaching all the documents i have, also Contact person name was Khushi and her no is 9210777282 which is working now also and if u talk as new person dont give us n reference then they will provide u all the details. Will also send there person with a form and documents to collect them and for signature. Regards, Chintan Shah +91 9833 848346
From: Chintan shah [mailto:shahchintanp07@gmail.com] Sent: Thursday, December 19, 2013 4:12 PM To: joscelyn@moneylife.in Cc: rajpradhan@moneylife.in; sucheta@moneylife.in Subject: A Fraud Case from Reliance Life Insurance--- Need Help

Hello Sir, Below is mail written to Mr Amitabh Aich & Mr Sameer Karekatte, regarding fraud case and havent recieved any updates since or action taken against it, we have visited there branch many times and we were inform that they cant do n e thing.

I m a policy holder of Reliance Life Insurance. My contract no 51058582 and client id is 86052590. I got a call in the month of June by a lady name Khushi Malhotra from Noida Phn no(09820947175/07428366766). She told me that she is a sales manager .if i take a policy of 50,000/- to be paid annually for a term of 5 years; they can mortgage this policy with reliance capital and sanction me a loan of Rs 5, 00,000 to be paid back in 15 years with 0% interest. And the cheque to be given will be in the name of Reliance Life Insurance. So I got assures that the policy money will go to reliance only. And she will sanction me a loan of Rs 5, 00,000. In addition to this I will also get a refund of Rs 10,000 out of that 50,000 paid as commission. So I paid 50,000 by cheque in month of June (22 June). Along with the documents which were collected by a pickup guy with reliance ID. And he had similar forms of many other people as well. So I got satisfied that its from reliance only. She told me that this procedure will take 1 month at least, so by 22/25 July she called me that she needs me to fill a form, which she sent only through her email id: khushimalhotrarel@gmail.com. Even I was constantly guided through landline nos. With (01141....) which were landline customer care people. These were only one way nos. (They can call, I cant). So I was under the impression that everything is genuine and as a part of procedure. So I scanned electricity bill and send it by mail. Then after few days one of the customer care person called n informed me that they have over sanctioned the loan (8, 00,000 instead of 5, 00,000). So I have to pay additional Rs 30,000 to get my loan money. So I got angry and denied to pay money. I told her that its a mistake at their end, so I wont pay. I dont want additional loan. Then she told me that this entire procedure has to be redone which will take at least 15 more days. So we finally agreed that after 15 days I will have that loan amount in my account. During those 15 days she was in contact with us. So I was assured. But after 15-20 days when I called for loan money (BY 5-10 Aug) she told me that it will be done after 15 Aug as its a holiday week n all. And after that she never picked my phone call and never replied messages. So I searched for RLI office in Mumbai and nearest was at Kandivali (east). So I visited that place by 20 Aug and they told me that there are no such schemes like this. This is a fraud. And I should write a letter to RLI. So Im requesting u that I have been cheated on this. PIease cancel the policy and release the amount. Regards, Chintan Shah +91 9833 848346