Clients demand refund within week

ILAM, May 5:  Clients of Assurance Unity Life International, also known as Unity Life International (ULI), which has been dealing in social security schemes without legal authorization, have handed a memorandum to the company to refund their money with interest.

• Unity figure omits international operations


• We need no legal approval, says Unity chief


• Unity´s business model ´flawed´, claims ´hoax´


• Unity´s dubious operation rakes in Rs 6 billion

They have also lodged complaints against the company at the District Administration Office (DAO), the District Police Office and the Federation of Nepalese Journalists, requesting them to help them get their money back.[break]



A group of 87 clients from Barbote Village Development Committee (VDC) handed the memorandum to ULI officials at their office based at district headquarters and demanded that the company repay their money within a week.



“The company misled us and lured us into buying its assurance and health schemes, with false promises. Besides, we also came to know that the company is operating illegally,” said Khageshwor Ghimire, a resident of Barbote-3, elaborating on the reason for seeking refunds.



He told Republica that ULI´s senior members had said the company would soon open a hospital, a medical college, a resort and department stores, among other things. “All of this has proved false. And because the company´s operations have been found to be illegal, we fear we might lose our money,” he said.



The company has collected Rs 15,000 from each of its client for assurance coverage of five years and promised to refund the money with interest returns of 10 percent per annum in case nothing happened to them over that period. It has also collected Rs 15,750 each from another set of clients, promising them free medical services lifelong.



However, the company has acquired license neither from the Insurance Board to deal in insurance products, nor from Nepal Rastra Bank (NRB) for banking services nor from the government for running free health schemes.



Despite its lack of legality, the company has raked in billions of rupees from some 650,000 people through its unauthorized operations. The company says it has some 4,300 clients in Ilam and a couple of adjoining districts.



Following the complaints, Kosh Hari Niraula, Chief District Officer of Ilam, said the DAO has already taken steps to find out the facts about Unity. “We have already asked the company to furnish its license and other certificates along with all membership details within three days,” said Niraula.



Unity´s clients here have also been approaching the office for refund since five days ago. But the company, contrary to its initial commitments, announced it was refunding only 65 percent of the amounts. This has irked the clients.



“How could the company say it will only partially refund our money? This is too much. We want our money back and also the interest,” said Roshan Shrestha, another client from Barbote.



Unity´s Ilam president Tirtha Dhakal tried to calm its clients, saying that it will soon get licenses for insurance and banking transactions. But the irked clients instead demanded that the local administration shut down Unity´s hospital, and raised questions over the quality and credibility of the health services it was providing.

Related story

Microfinance institutions allowed to use customer protection fu...