Team Life Care Insurance is a corporate agent of Bajaj Allianz Life Insurance Ltd. As a corporate agent it should train insurance selling agents to sell the insurnace policies. But it indugles in multilevel marketing scam. One has to delve deep into the activities of this type of fraudulent companies to find their real face.
One of the readers asked whether Team Life Care business is legal. It sure is illegal. A criminal case was filed against that firm along with Bajaj Allianz Life Insurance Ltd for indulging in money circulation schemes in the guise of selling insurance polices. Instead of letting the police investigate and find its innocence, both the companies moved the High Court of Andhra Pradesh and got interim stay orders over the investigation.
The modus operandi is simple. They approach a person to buy an insurance policy and ask him to rope in more members to earn good commission. If he could rope in six more members he is assured of a sizable income. And if he could bring in more members he is offered a trip to Andaman Islands and luxury cars and so many rewards. Again it is chain marketing and they call it referral marketing. The question again is how could anyone find so many people on earth to sell policies.
Now where does the money come from? The insurance policy is a unit-linked policy. That means the company would invest the money in the stock market and distribute the dividends to the insured persons. Now how much amount is deducted from the first year policy? They are deducting a whopping 70 per cent from the first year policy amount without informing the insured and moreover induce him that he could earn milliions if he brings in more people. What is the justification of deducting 70 per cent? How the insured person is going to get back his amount from the mere 30 per cent investment in the stock market. Now the stock market collapsed its value is peanuts. So the insured lost all his money. These companies must reveal who is sharing the 70 per cent of the first year policy amount.
This is how the multilevel marketing companies are hoodwinking people and making themselves rich over night. In all these activities the main beneficiary is the company.
People should realise that it is a scam and not fall prey to these frauds.