Are you a victim of Insurance selling – a Shailesh Kumar blog

Insurance Health Check Up
How is your Insurance Health?
July 25, 2017
insurance complaint
Have an insurance complaint. Don’t worry , Insurance Samadhan is here.
July 28, 2017

Are you a victim of Insurance selling – a Shailesh Kumar blog

victim of Insurance selling

Tring Tring ! “Am I speaking to Mr. Sharma. Sir, I am calling from IRDA service department. IRDA has declared a bonus of 1 lakh rupees on your policy.  To take this bonus, you need to deposit Rs 20000 in the Bank Account No XXXXXXXXX. Please do that in 7 days, else this bonus will be forfeited. “

What would one do? Would you go and deposit the money? Seems unlikely. But I have seen many cases where gullible customers fall prey to such calls and deposit their hard earned money. What is this if not the greed?

Why accuse that you are a victim of Insurance selling?  Yes, Insurance Companies can be blamed of data leakage. But, Mr Sharma has fallen to the greed of extra bonus.

Sir, thanks for the cheque of Rs 50000 on our Insurance Company. Just sign on the Proposal Form, I would fill the rest of the form.”

Yes, it does happen. Insurance is a legal contract and you need to fill up the form after all declaration. But, we fall victim to over trust. We do not give even 5 minutes to fill up the form.

These are just two examples, we are equally responsible for such careless acts. We can avoid such mistakes by being more careful. We need to be more careful while dealing with insurance. When we buy any other product then we do lot of research but we work on impulse while dealing with financial products. May be the reason is lack of financial literacy and our resistance in learning complex financial products.

So are we saying that misselling does not occur or fraud does not happen. Yes, it does happen and we can avoid by being more careful. Some prevalent frauds are detailed below:

  1. Buying policies which are not suited to your needs. Many times wrong promises are made on returns and money on death.
  2. Hiding material facts like your weight, preexisting diseases, hobbies and profession. Each fact is important for your insurance contract and must be declared.
  3. Buying policies on the basis of false promises made on telephone. Mostly, such calls ask for surrendering your previous policy and buy another one. These calls are made by fraud syndicates and they lure by bringing new stories and submitting proofs. Surrendering policy is always a loss to you and insurance company.
  4. Buying insurance in lieu of fixed deposit where you are told to pay a single one time premium. However, the contract has regular premium. A single premium policy has much lower commission in comparison to regular premium. We do not read the contract and just keep the policy document. After one year, when the call comes for the renewal premium then we realize that a fraud has taken place.
  5. Buying insurance on the child and you think that you are insured. It is very important that who is insured by reading the contract.

Insurance Samadhan, a platform to handle Insurance Grievances, would work with companies in resolving such issues and providing financial literacy.

Leave a Reply

Your email address will not be published. Required fields are marked *