Insurance Policy Mi-sold in the Name of Fixed Deposit

It has come to the notice that there are some people who try to take advantage of our weaknesses and mis-sell insurance policies in the name of FD (fixed deposit) just to make easy money.

Read how Sagar, a 40-year-old father was misled into buying insurance policies in the name of FD:

Sagar is a farmer. One day a camp was organized in the village on bank account opening, kisan credit cards and other government schemes. Sagar also attended the seminar and was keen to meet the camp officials for planning the wedding of his two daughters.

Tarun: Namaskaar, tell me what can I do for you?
Sagar: Can you tell me about any scheme where I can save and get the money after 10 years for the marriage of my daughters? I have over Rs.10 lakh which I got by selling a part of my land.
Tarun: Yes, you can take a fixed deposit of 10 years. Now, you need to pay Rs. 10 lakh, and after 10 years, you will receive Rs 20 lakh.
Sagar: This seems good. Is it guaranteed and supported by security?
Tarun: Oh! Yes. All schemes are safe and backed by the government. You can see my card which has my bank name.
Sagar: Ok, what do I need to do?
Tarun: You have to issue a cheque in favour of _________. I am not taking any money, all money is going to the bank.
Sagar: Thank you, Sir Ji. Let me check and confirm with you.
Tarun: What happened? But I am here for today only and we have a special offer of Gold Coin which will not be valid in the future. You can gift jewellery to your wife, she will be happy.
Sagar: Gold coin? That sounds amazing! let me issue the cheque. In any case, the cheque will be issued in the bank’s name and I have your card. So, there won’t be any problem.
Tarun: You are taking a great decision.

Sagar issues the cheque fearing that he will lose the offer of the gold coin but he does not know that he will lose all his money.

After some time, two documents came to his home which he is not able to read because they were written in English.

Later Sagar’s city friend came to his house. Sagar delightedly told him about the FD he invested in. His friend was suspicious of the FD. He asked Sagar to show the receipts. His friend informed him that it was not an FD. His friend told him that Tarun was not from the bank. Instead, he was a part of a fraudulent gang that mis-sold two life insurance policies. Also, the wrong contact details were mentioned in the receipts. Therefore, he never received any call from the insurance company. Sagar realized that he became the victim of insurance fraud. 

What exactly happened with Sagar?

As a father of two daughters, Sagar was easily convinced of the idea of investing the money into a Fixed Deposit so that he could easily bear his daughters’ wedding expenses. Also, he blindly believed Tarun and therefore never read the receipts, he received from Tarun.

In reality, the fake bank official mis-sold two life insurance policies to Sagar. The wrong contact details were mentioned in the policy document. Hence, he never received any call from the insurance company and as a result, he was unaware of his insurance policies.

Sagar was an uneducated village person. He believed the fake bank official and bought two insurance policies in the name of an FD. 

Always remember

1. You must visit the company/bank to verify the details of the investment tool you are planning to purchase.
2. Always read the documents before signing them. 
3. If someone asks to share the OTP, never share it without verifying his details and without reading the message of the OTP. 
4. If you can’t read or understand the document, you can take help from someone you trust.

If you are a victim of insurance fraud and mis-selling, then inform the insurance company. You can also contact the grievance cell of IRDAI.

If you are unable to fight your case, then you can contact Insurance Samadhan. We have resolved 14,500+ complaints related to insurance. Insurance complaints include insurance mis-selling, claim rejection, delay in claim settlement, etc. Contact us to get samadhan for your insurance-related issues, we’ll be happy to help you.

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

Travel insurance medical claim rejection

Mis-sold an insurance policy