Is "lapsed policy refund scam" a scam?

Question

Is "lapsed policy refund scam" a scam? How do I know, and what should I do?

Accepted Answer

Yes — this is a known, dangerous scam. A caller pretends to be from IRDAI, LIC, or your insurance company. They say a policy you forgot about has matured or lapsed, and a large refund of ₹3 lakh-₹10 lakh is waiting. To claim it, you must pay GST, processing fees, or "stamp duty" upfront. Red flags: Caller knows your name, an old address, and sometimes an old (real) policy number — bought from a data leak • Promised refund is large (₹3,00,000 to ₹10,00,000) and grows with each call • You are asked to pay GST, processing fee, stamp duty, or 'TDS unlock' before the refund is released • IRDAI never calls policyholders. They do not handle individual refunds — your insurer does • Each fee leads to another ('one more payment to release the funds') — the classic advance-fee pattern. What to do: Hang up. IRDAI and the LIC central office never call you to release a refund. Real maturity payouts go to your registered bank account automatically • Look up your insurance company's official customer-care number on their website or your physical policy bond and call them directly to check • If you have already paid fees, stop paying. The 'last fee' never ends. Do not wire more money hoping to recover • Call your bank's fraud line to report the transactions and attempt a reversal • Report at https://cybercrime.gov.in or call 1930 (national cyber helpline).

Is “lapsed policy refund scam” a scam?

How to tell

What to do right now