Insurance Scam

[sassienie]

A couple of weeks ago I stumbled across an insurance racket to do with a distant relative of my Thai wife.

It works like this:

A Thai boy friend and his live in girlfriend are head broker agents for a well known insurance company brokerage in Thailand.

They work on a low maximum wage of 2000 baht per month, but obtain the bulk of their earnings by commissions, which is normally about 3% of the investments or on the policies they sell. They also hire others as their sole agents who only get paid commissions that part are paid to the head broker agents on the sale of a policy.

The head broker agents specialise in life insurance that involves the clients tying their investments up from a minimum of 6 years up to a maximum of 15 years. So these life policies pay the most commissions, as there is more money and long term investments involved. Plus the agents receive bonuses each month if the investments perform well, so there is big money to be had here.

The terms offered are 4.8% interest and appear most attractive compared to the naff interest rates presently being offered by the banks.

The Thai boyfriend and his girlfriend hold a wedding ceremony to make them appear respectable to their Thai customers and hierarchy who are invited to the wedding. But they do not get married officially at any registry office (amphur). All is done only for appearances.

The girl advertises herself on Internet dating sites and in MSN chatlines. She claims that any suitable Westerner who is able to invest 2 million baht into a policy, she will be his girlfriend and for an investment of 10 million baht or more in a life insurance policy with her company, that she will marry.

2 million baht at 3% commission, that’s 60000 baht tax free profit. 10 million baht at 3% commission, that’s 300000 tax free profit, plus all the monthly bonuses.

But when she says marry, it means they do not get married officially at any registry office (amphur). Only a wedding reception is involved, paid for by the investor.

She always chooses Farangs that do not live local or are not resident in Thailand at all. Preferably businessmen who are often away offshore.

This is a continuing scam and may have several Farang boyfriend/husband/ investors on the go simultaneously.

The Insurance policy it’s self is not protected by any Thai government compensation schemes if the company goes bust, nor are the investments within the policy recognised by immigration for visa purposes. Also technically these scammers are not committing any illegal acts and doubtful whether the investors would have any claims through the courts.

So in fact, if the company declares it’s self-bankrupt at any time, there is no means of fund recovery for the investors whatsoever. And I have read that many of these insurance companies do go bust every year.

These are desperate times and new ways of separating the hapless Farang from his money. If it fails in Thailand, why not extend the grabbing hand to abroad.

So there it is: buyer beware.

I am not willing to give names or companies, (so don’t ask). I obtained this knowledge and may save many from heartache and misery by warning others.

Edited December 16, 2008 by sassienie

[Damman2]

That seems to be a rather complex way of scamming a bloke - I wonder if anybody has actually taken them up on the policy ??

Personally I would rather have a free keyring or screwdriver set with the life policy - free wifes are too much trouble.

[JetsetBkk]

Eh? Why doesn't she simply say "give me 1,000,000 sin sod and I'm yours"

No need for this 3% commission on a policy nonsense.

[torrenova]

Eh? Why doesn't she simply say "give me 1,000,000 sin sod and I'm yours"

No need for this 3% commission on a policy nonsense.

Agreed. Too many stories are interwoven in the OP's statement.

[Gary A]

Any farang who bites at a scheme like that would certainly be easy pickings for any gold digger. I am tempted to tell you stories about my EX farang wife but I don't want to be embarrassed by exposing my stupidity. There are good and bad people in every country.

[dave111223]

Why would the commission be tax free?

[H2oDunc]

If its a scam then there's one on the Thai classified personal section offering to marry farang for 10 million baht but according to the blurb she's just a good farm girl from Issan

[surface]

Uhh, tax free?

Me thinks the OP is regurgitating several stories he's heard while getting edumacated on the ol' barstool.

Edited December 17, 2008 by surface

[JetsetBkk]

... edumacated ...

[pothai]

Too complicated and far fetched...marry b/f then marry farang

[dumball]

... edumacated ...

That is somewhat akin to edificated , but translated into Thai-ese .

[oevna]

... edumacated ...

That is somewhat akin to edificated , but translated into Thai-ese .

I thought that was Hillbillyese. No offense intended to any rural American folk. I have plenty of hillbilly friends and family, and they are well aware that they have their own unique dialect.

[oevna]

Regarding the OP:

Hmm...let's see, I think I'll give some random person that I met in an MSN chat room 10 million Baht for a "life insurance policy," in exchange for a free "wife" whom I have never met, and who lives in a different country. Sounds like a great idea. Where do I sign up?

Who falls for these scams?

[scorecard]

Tend to agree, the original story lacks credibility.

However it's worth sharing that some areas of the mainstream life insurance industry in Thailand lack redibility and morals, I know from family experience.

My Thai daughter-in-law (dil) was talked into two policies by a Thai agent from a jv between a local very high profile bank and a high profile international US life insurance company. The female agent was a long term close friend of my dil, from high school, basic details as follows:

1. dil convinced by the agent (her dear friend) to buy a life policy on her father which turned out had virtually no benefits whateve - cashback with about .03% simple interest.

2. dil convinced by the agent (her dear friend) to buy a very expensive health insurance policy for her mother, four times the price of a logical, sensible, or necessary coverage.

Upon marriage my son became aware of these policies when his wife stopped work to have a baby and she asked my son to help pay the monthly premiums. Premiums had already been paid for about 4 years .

My son asked me to give some comments. Initially the agent insisted that the policies were not available in English, then insisted that the documents held by my dil were not originals and the original documents were held in the bank and were different and were absolutely not available to policy holders (in fact the very rude attitude was 'how dare a customer ask for details and how dare a farang ask questions or comment').

Agent also insisted that she did not have a supervisor and there was nobody above her to talk to. Also insisted that further discussion (any form of discussion) about both policies was absolutely not possible for a further 10 years or this would cancel all benefits and all payments to date would be confiscated by the jv. Also claimed that non payment of monthly premiums would land my dil in jail. By this stage the relationship between agent and my dil is very very sour and agent rejects all calls from dil or my son.

After very little cooperation from the bank/insurance jv, I instructed my well known and respected lawyer to contact the JV and ask for the name of someone very senior to talk to or advise that we would contact the police (lawyer has good contacts in the police who are genuine and sincere).

I visited the jv manager with my lawyer, Thai jv manager initially tried to brush it all aside as part of the insurance business. This provoked my lawyer to indicate very clearly that he would commence a legal action, call his senior police contacts, contact the insurance industry council of Thailand, and the Thai Consumers Association and he produced the names, tel. numbers and e-mail addresses of very senior executives of the jv partner in New York, and showed draft e-mails of serious complaint.

My Thai son and his wife also attended this meeting, they both speak good English and the meeting was conducted in English, however on our initial arrival at the jv office the secretary tried rudely and arrogantly to tell them they would not be allowed to attend a senior meeting. This was fixed instantly by myself and lawyer telling the secretary very that they would be attending the meeting, and i insisted on an immediate formal apology from the secreatry which she eventually gave, initally apolgizing to me but i strongly insited that she apologize directly and individually to my son and my dil both in Thai and in English I pushed this further by asking my son and his dil if the apology was deep enough, and they indicated yes. By this stage the secretary was in tears and she clearly realized that her arrogance and rudeness has severely tripped her up.

Suddenly we had full cooperation, suddenly all the policy documents were available in English, suddenly the jv manager wanted to take me to an expensive dinner which I did not accept. Suddenly we were able to cancel the polices and re-claim some of the premiums paid.

I insisted on knowing what action would be taken against the agent. Initially my question was sidetracked, but I kept insisting. The agency agreement with the sales agent was in fact quickly cancelled wih an instruction that she was not allowed ever to represent the jv again , but we have since learned that she immediately changed to another high profile insurance jv.

Beware.

[mrtoad]

A couple of weeks ago I stumbled across an insurance racket to do with a distant relative of my Thai wife.It works like this:

Are you sure it's a distant relative, or is it your Sister in law who you were stalking on Tagged? Sounds very similar.