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. 

Team Life Care Insurance facing a criminal case

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.

FIR registered against Bajaj Allianz Life Insurance and Team Life Care Insurance

The Machavaram police has finally registered a case against the giant insurance firm Bajaj Allianz Life Insurance Company Ltd and Team Life Care Insurance (Pvt) ltd after toying with the court order for a week. It may be recalled that the Honourable First Additional Chief Metropolitan Magistrate issued orders on 18-11-2008 taking cognisance of the offences by Bajaj Allianz and Team Life Care for their alleged involvement in money circulation scheme in the name of product sales. While the companies like Amway, Herbalife and a score of others also indulged in money circulation schemes in the name of sale of products, the insurance company and its crony have been into the same offence in the name of sale of insurance policies. Still, the officials of the fraudulent companies defend that theirs is a legal business. Still, they fail to produce any supporting document to that effect. Moreover, they argue that they would permission soon for approval of multilevel marketing system in selling their insurance policies. How ridiculous is their argument. Anyway, we must congratulate them for their honesty for confessing that at present their business is illegal.

The officials and their counsels tried to influence the complainant with compensation appealing him to withdraw the complaint. They could not answer why they are appealing for withdrawal if they think their business legal.
These people know very well that they are into an illegitimate business cheating the gullible people with inducement of easy and quick money and they know very well alrealdy several lakhs of people were cheated in the scheme. Still, they want to continue the illegal business.
It is high time stringent action is initiated against such frauduelnt companies.

Criminal complaint against Bajaj Allianz, Team Life Care Insurance

A criminal complaint was filed against the Bajaj Allianz and its corporate agent, Team Life Care Insurance (P) Ltd in the first additional chief metropolitan magistrate court in Vijayawada. After hearing lengthy argument put forward by advocate and activist M V Shyam Sundar, the Court referred the case to the Machavaram police for thorough investigation.

If one dwells into the details of the complaint, the advocate was approached by a victim who lost almost all his money after he purchased a life insurance policy from an unauthorised agent of Team Life Care Insurance Pvt Ltd. The victim purchased three policies each worth Rs. 5,000 and in turn he got units worth Rs. 1500 for each policy. He was taken aback after looking at the summary statement and approached the agent but did not a satisfactory reply.

After listening to a FM radio speech by Advocate Shyam Sundar, the victim approached him and the advocate suggested to file a criminal complaint against both the companies.

Both the companies indulged in all types of violations while selling insurance policies. No policy should charge more than 40 per cent as charges from the policy amount as per the Insurance Act, 1938. But in this case 70 per cent has gone as premium charges. As per the Section 41 of Insurance Act, 1938, no agent whether Individual or corporate agent should employ sub-agents to sell insurance polices. With the connivance of Bajaj Allianz, the Team Life Care Insurance is indulging in such malpractices.

In depth study shows, actually, the Team Life Care is indulging in more serious crime that is money circulation scheme. It is encouraging the unauthorised sub-agents to enroll two more members each offering commissions. They in turn have to enroll to more members each. This is nothing but money circulation schemes as envisaged in the Honourable High Court of Andhra Pradesh judgement in Amway case.

One has to wait and watch to see what the police are going to do with this criminal case. If history repeats, it will be another GoldQuest case.