Case Study- Insurance Mis-selling by Banks
We at Insurance Samadhan ensure that the readers get a real insight into what happens in the insurance world. Last month, we started a series of blogs, “What are the most common reasons for Health Claims Rejection: The Series.” We started this series with a vision to let our readers understand reality. And this reality touches the depths of rejections since we are an organization that deals with health claim rejections daily. We get so many cases that people face in the world, which can help you better understand the process.
Now, we have added another dimension to the insurance-related problem, “Insurance Mis-selling.” In the last article, we discussed a situation where telemarketers call people with real insights about their life and insurance policies to make a fool of them by selling a fake policy. We call it a “change of existing insurance policy.” We recommend you read the first blog so that you get to know what we are trying to achieve with this information.
Today, we will talk about “insurance mis-selling by banks,” which has been ongoing for a while now and addressed by the government as well. The mis-selling of insurance is on the rise and can be seen in various places all over the country. There are numerous cases where a customer is sold an insurance policy he never wanted. For example, people want to invest in Fixed Deposit but they end up buying an insurance policy. In the second year, much money is taken from them as premiums.
Recent Viral Video
The mis-selling of insurance is prevalent at many banks and recently, a video showed that a bank employee is abusing other employees for not meeting their sales target. This shows the toxic work culture that forces the employees to make unethical sales.
Types of Products Mis-sold
Our purpose is to fill you with information so that these things can be avoided. We know what it feels like to be cheated as we get so many cases on a daily basis. We want to educate our readers, and thus, let us talk about the types of mis-sold products so that you can catch fraud as soon as you hear it.
- Fixed deposit: Whenever you go to a bank, there are high chances that you might be sold an insurance policy instead of an FD. It is a tricky thing. Make sure that you read all the documents before buying anything.
- Bank lockers and loans: Sometimes, customers find themselves compelled to buy insurance policies before they can get a loan or secure a locker. Often, they are unaware that these policies were added without their knowledge or consent.
How to Avoid Being a Victim of Insurance Mis-selling
One of the best ways to avoid being a victim of insurance mis-selling is to say NO! Before buying any policy, understand what it covers and how it benefits you. If someone pressures you into buying, take a step back and think. Research the policy, ask questions, and don’t rush. If an offer seems too good, be cautious. Read the policy documents carefully and check for hidden costs or terms.
You may call the customer care of the insurance company and verify the product being sold. The company will also call you to explain the product before and after the issuance, please listen to them and ask to clarify.
You have a 15 days free look period to get a refund of your premium if the policy does not suit your need or has been mis-sold.
Bottom Line
Stay vigilant against insurance mis-selling. Understand policies before purchasing, ask questions, and avoid rushed decisions. Protect yourself from unethical sales tactics and make informed choices for your financial security.
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