Misselling of policies continue to plague the industry at large.
Parama Dasgupta, a PR professional from Kolkata in her late 20s, wanted to make a short-term investment and approached an insurance agent. The agent proposed a policy where Dasgupta had to pay three premium of `30,000 each and a maturity period of five years. She was happy with this policy and opted for it. But to her surprise, when the welcome kit arrived, she realised that it was not really a short-term policy and that the agent had misled her. The policy document stated she had to pay seven premium and can withdraw the money only after eight years from the last premium paid.
Feeling cheated, Dasgupta contacted the agent to set a meeting, but he kept delaying it and only showed up after a month. By that time, the free look period of the policy was over and she could no longer surrender it. While the insurance agent assured her that she would be able to withdraw the money after five years, still in doubt, she contacted the customer care only to be left disheartened. She could not contact the insurance agent again who seemed to have disappeared from the face of the earth.
There are thousands like Dasgupta who are cheated by insurance agents despite all the regulations in place to protect interests of the policy buyers.
Misselling refers to unfair practices adopted for soliciting and selling insurance. It includes the activity of selling policies, which do not fulfill the financial needs of the customer or the one, which is different from what the customer is actually looking for.
Sharing his views on the same, Anil P.M, Head of Legal and Compliance, Bajaj Allianz Life Insurance, said that misselling by insurance agents takes place when an agent misrepresents facts and benefits of an insurance policy. It may include giving a wrong picture of product benefits, assuring incorrect guaranteed returns, erroneous premiums, forgery and even holding back terms and conditions of the policy.
هذه القصة مأخوذة من طبعة September 2019 من Outlook Money.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة September 2019 من Outlook Money.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
Gold ETFs And FoFs
While Indians love to invest in physical gold, even mutual funds offer the option, but in paper format.
PLANNING TO BUY CHILD INSURANCE? THINK TWICE
Child insurance plans combine insurance and investment but often offer low returns due to high costs, making a combination of a term insurance cover and mutual fund a better option for securing your child’s higher education needs
How Do You Define Happiness?
Money does buy happiness, but after a while, the appeal fades. We talk about our relationship with money, but, maybe, it’s time to revisit our relationship with happiness
Avoid Crypto As It Is Highly Volatile
I am 22 years old and have recently started working. I want to invest a small portion of money in cryptocurrency. How should I go about it? Does it require a huge capital investment?
Invest Right, Don't Speculate
The lure of high returns and quick gains from equity tips, cryptocurencies, and equity F&O can be enticing. But remember, return of capital is more important than return on capital
The Wedding & Budget: Is Minimalist Trend The Right Knot For You?
Indian weddings are known for their pomp and grandeur, but minimalist weddings are also in vogue now. Dia Mirza was one such celebrity who went for a minimalist wedding. If you also want to keep things minimal on your big day, here’s how to do it
Here's How To Buy An ETF?
Mutual funds are the preferred choice for retail investors. However, they come at a cost and fund management risk, apart from other risks. A smarter alternative is to invest through ETFs.
How Passive Funds Help Diversify
Passive funds provide a simple way to invest in broad markets as well as in specific themes and sectors, making them ideal for an investor's satellite portfolio
The Rise Of Passive Funds
The popularity of passive funds among retail investors has risen post Covid, and fund houses are out with many variations of ETFs and index funds. Does this category present a new opportunity for investors?
Tax Reforms: What's In Store?
The government is working on reforming the existing Income-tax Act, 1961. The impending reforms have raised many questions in the minds of taxpayers. Will the old regime and deductions be done away with? Will it really simplify your life? What's the need for these reforms? We try to answer these and other questions regarding tax reforms
