Sunday, 20 November 2011

Team Life Care is violating IRDA regulations and indulging money circulation scheme

One of our free-thinking readers Mr B K is writing: Before reading the following The Editor of this blog feels it is apt to recall that the Corporate Frauds Watch filed a criminal case against Team Life Care and Bajaj Allianz for indulging in money circulation scheme in selling life insurance policies. 


Why the fuss is only about 500/- membership fee when everything TLC is doing is unethical n illegal? Can any of the TLC supporters explain the below violations by TLC and still say TLC is LEGAL? 
1. Amended IRDA regulation clearly says procuring business by any means other than by specified agents is a violation. Procuring insurance by Referral method (popularly known as MLM and Chain system) and passing on commission to referrers is being done by TLC which is a clear violation.
2. The defending members of TLC are unaware that TLC has two different companies to carry out their fraudulent ways intelligently.
3. TLC universal is the company in which all the members are working under and paid their commission. TEAM LIFE CARE Co. I Pvt Ltd is the company which has a corporate tie up with Bajaj Allianz and supposed to procure business through their specified agents licensed by IRDA.
4. Sourcing of insurance business by TLC universal members and submitting to Bajaj Allianz through Team Life care is a clear violation of IRDA regulation act which is not known to most of the members.
5. Every single insurance proposal form should have Specified Person attestation about details of how long he has known the policy seeker .In case of TLC Universal sourced business, the same is done by Team Life care staff later on before submitting to Bajaj Allianz. The customer who receives a policy bond through TLC doesn’t even know the attested licensed agent as mentioned in the policy bond. Doesn’t it ring any bells? 
6. None of the pending petitions are against IRDA regulations and allows getting the business in the above mentioned methods and doesn’t regularize the violations of IRDA Corporate agent’s policy.
One can access the amended regulations on 12th July 2010 in this respect by pasting the below link in browser…

http://www.irda.gov.in/ADMINCMS/cms/frmGeneral_Layout.aspx?page=PageNo773&flag=1&mid=Insurers >> Life >> Regulations

The purpose of inflicting regulations is to avoid mis-selling and allowing transparency to the insurance seeker to know the complete details of the policy being taken. This can only be done by an IRDA licensed agent.
Now, the said company has many people sourcing business by inducing the money to be earned by being a member of the system. To be a member one has to buy insurance policy and refer more people for income. The members are not aware anything about insurance and products being sold. One can verify the same by attending their seminars as listed on their website which incidentally happens in Mr.Shyam’s town also regularly.
The owners of the company are getting richer and richer by getting huge commission from Bajaj Allianz by fooling the members about the legality of the TLC Universal P Ltd & Team Life care Co I P ltd and suppress the facts. For a corporate agent the commission received would be around 40 % to 60% product wise on the sourced business. For every 1 lakh they get about 50 k first year the amount spent for commission would not be more than 10k for all sort of commission payments to the members.
One has to decide what is fair….. real pain to see that none of the above bloggers even think about the poor man who has bought insurance only because of the dreams shown to him about earning in lakhs which doesn’t serve his purpose …TLC claims to be having over 30 lakh members, but never mentions the success ratio. 

9 comments:

Laveti said...

I appreciate the concerns. In India, like every other system, the regulators sleep till something affects political leaders or their careers!!! Corporate frauds rarely attract legal action(Until the fraudster announces himself- Satyam)despite the fact that the entire country knows about the scheme (30 Lakh members so far !!).

Any ideas how we can fight?

Shyam Sundar said...

A criminal case was filed by Corporate Frauds Watch against TLC and Bajaj Allianz for indulging in money circulation schemes while selling ULIP insurance policies. A case in consumer forum was also filed and the Vijayawada Forum directed the company to refund the amount. The case is pending in the State Forum.
You too could file similar cases against these companies.

Michael said...

Rajesh Bothra was born in Mumbai 1968, in Marwari family from a Rajaldesar village in Rajasthan. When he was aged about 16. He decided to quit his further studies, because his ambition was to become an excellent businessman. After quitting his studies he decided to start his business. In Present days his Business is popular by brand name Mercury, which is sold and uses his product Worldwide by common people.

James Collin said...

Dear Shaym Sir, I appreciate your efforts to bring up violations by TLC company. Since 3 years one of my neighbors is insisting me to buy a policy. He gave false statements about IRDA approvals, Supreme Courts favorable judgement on TLC, which were all fake. I researched online about MLMs, apart from other articles, complaints on TLC educated me. Thanks for taking time and fighting against such illegal practices.
Could you please post update on the case filed in Vijayawada court on TLC or any other cases that will be very helpful for me to have good evidence to decline any such proposals.

Thanks in Advance

Afshan Sultan said...

I have gone through your article where you have stated that as per amended IrDA regulations states that procuring insurance business other than by a specified agent is a violation of rules. You have also stated in point number 5 that “Every single insurance proposal form should have Specified Person attestation about details of how long he has known the policy seeker”. But the regulations have not specified any time duration for how long the introducer should be knowing that new person who is joining TLC universal. It can just be the time for which the person is introducing the TLC versus business to the new prospects and that will be enough to satisfy this rule in my opinion.
If all these things are true then as to how the government and IrDA are permitting insurance policies being obtained online, where there is no question of knowing the customer even for a single second before he or she may be putting to fill the required forms online.
Moreover TLC universal peoples say that they are not telling thing about the policy, they only tell about the business to the new prospects and they themselves choose the policy. Thus there is no question of any violations apparently.

Rajkumar said...

Hi
Friends I worked for Lic I know how DO 's do the business to full fill their targets .
Here directly or Indirectly TLC is doing a good thing. Bec Insurance in India is very less compared to developed countries . They are helping to get a policy . They are helping one family it is leagal or illegal keep a side Out put is Important.
For a good cause how Serr Krishna done in our Mahabharatha war.
why 27 company's existed in India bec Lac of awareness about Insurance .In Japan today 250 companies are working for Insurance .
Still we have not reached 30% of our population . So guy's
Think n appreciate.
Regards.
E.s.Rajakumar
rkr.friend@gmail.com

Anonymous said...

I MYSELF WORKED AS A REGIONAL HEAD OF SAPPHIRE INSURANCE INDUSTRIES, ONE OF BAJAJ ALLIANZ'S MLM CORPORATE PARTNER(MODICARE) AND QUIT LONG TIME BACK AFTER OBSERVING THE UNETHICAL WAY POLICIES WERE SOLD.I WANT TO KNOW WHETHER SAPPHIRE STILL EXISTS.

THECOUNTDOWN TO THE END OF MY LIFE STARTS FROM AUGUST 12th 2012 said...

I MYSELF WORKED AS A REGIONAL HEAD OF SAPPHIRE INSURANCE AGENCIES, ONE OF BAJAJ ALLIANZ'S MLM CORPORATE PARTNER(MODICARE) AND QUIT LONG TIME BACK AFTER OBSERVING THE UNETHICAL WAY POLICIES WERE SOLD.I WANT TO KNOW WHETHER SAPPHIRE STILL EXISTS.

THECOUNTDOWN TO THE END OF MY LIFE STARTS FROM AUGUST 12th 2012 said...

I MYSELF WORKED AS A REGIONAL HEAD OF SAPPHIRE INSURANCE AGENCIES, ONE OF BAJAJ ALLIANZ'S MLM CORPORATE PARTNER(MODICARE) AND QUIT LONG TIME BACK AFTER OBSERVING THE UNETHICAL WAY POLICIES WERE SOLD, writing to the VICE PRESIDENT ,HR & OTHER ADMINISTRATIVE AUTHORITIES ABOUT THE POSSIBLE PITFALLS OF THIS TYPE OF BUSINESS BUT THEY CHOSE TO TURN A BLIND EYE TO ME.THE DAY-TO-DAY OPERATIONS OF THIS SCAM IN KOLKATA IS HEADED BY Mr.SUBRATA KAR(subrata@modicare.com,s.kar@modi.com,subrata-modicare@modi.com,I WANT TO KNOW WHETHER SAPPHIRE STILL EXISTS.