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