Steps to Deal with Insurance Mis-selling

Insurance is a subject matter of solicitation, this means that the seller needs to explain to you the merits of the insurance product and convince you to buy the product. Insurance sales will be called unsolicited if you have been sold on the basis of any promise which is not true or if you are offered incentives. If you think you’re a victim of insurance mis-selling, you can deal with it by following the steps below:

1. Collect evidence of mis-selling: Call recordings, emails, or text messages which can prove that you were misled by someone to buy an insurance policy that you do not want, can act as evidence of mis-selling. Gather all such proofs.
2. File a complaint about the mis-selling of an insurance policy: You can file a complaint via call, email, letter, etc. It is better to file a complaint via email as it will act as written proof that you have filed a complaint. In your mail, state the factual reasons you think your policy was mis-sold. Attach a copy of proof of the mis-selling.
3. Record and save all the phone conversations, emails or text messages about your complaint, including dates, times and names of anyone you speak to. 
4. The provider is required by law to deal with the complaint within a reasonable time of receiving it. 
5. If the provider fails to respond, you can approach the Grievance Redressal Cell of IRDAI and explain your grievances to them.
6. If your complaint is rejected for the first time, you can appeal again. You can appeal multiple times.
7. You can also contact Insurance Samadhan to guide you in resolving your grievance.

Insurance Samadhan resolved a similar case of insurance fraud and mis-selling

Mr. Namit Bhatia was mis-sold two new life insurance policies by someone. He was given a false assurance that he will receive the amount from the lapsed policies of his father within 90 days and in return, he was told to open a bank account with Rs. 2 lakh credited to it. He missed the free-look period as he was misled that he would receive the amount within 90 days. Mr. Namit stated that he trusted that person as the person had all his personal details. After a few months, when he didn’t receive his money back, he tried to contact that person but failed to receive any response. He realized it was insurance fraud. He filed an FIR and also contacted the insurance company. However, he did not receive a response. On May 21, 2022, he approached Insurance Samadhan for our help. We guided and assisted him in the process of resolving his case. He got his money back within a month.

Click on the below links to read some cases resolved by Insurance Samadhan:

Health Claim Rejection amid Covid-19

Mis-selling in life insurance policy