The mis-selling of insurance policies has only grown with the passage of time. IRDAI (Insurance Regulatory and Development Authority of India) has thus come out with specific regulations for checking this problem in recent years. IRDAI has been making efforts to lower cases of insurance mis-selling and definitely they have borne fruit. What can you as an individual do to protect yourself from mis-selling? Here are simple ways to identify insurance mis-selling in India.
7 simple ways to spot mis-selling of Insurance Policies:
- Always listen to what is being pitched: Selling a product for the long term like life insurance is always tougher. Some agents often sell you short-term insurance policies. In case the agent states that there is a savings product for the short-term of around 4-5 years which also comes with insurance cover, then purchasing a policy may be risky since life insurance will never offer benefits in the short-term.
- Always go by the plan document: Every insurance company will have a specific calculation in place for the life insurance plan in order to prevent confusion. Ask the insurance agent for the standard illustration of the policy that you have chosen in order to go through it. Do not go by the handwritten calculation only.
- Fill up your application form: Many insurance agents insist on signing at particular places and they fill up the form on the customer’s behalf. However, this may create more ambiguity. You should always read all the information very carefully and be totally aware of the documents that are to be signed.
- Ascertain medical requirements: Some agents do not talk about the medical aspects since in case of a medical issue, the insurance company will naturally want to follow-up with questions about the same, leading to further delays in closing the deal. As a result, you should always check whether your medical details are necessary while purchasing life insurance. Agents do not usually bother much about the claims aspect but the medical history of the customer should be known properly for ensuring suitable settlement of claims.
- Check out the name of the policy: You may be approaching an insurance agent for purchasing a specific product and getting another one after you listen to what is being pitched. To ensure that you do not fall into such predicaments, always check the coverage that you require and then match it with the name of the policy while you are filing the documents.
- Always scrutinize details closely without looking only at the rewards: Some agents may look to tempt customers with rewards and benefits that are unrealistic and over the top. Always scrutinize finer details of the policy online or get the brochure for a detailed examination.
- Wait till the insurance company contacts you or do it yourself: Most insurers call their clients to make sure that they have carefully understood all the plan terms and conditions. If you do not have this call coming to you, do it yourself and call your insurance company’s customer care number. There are several cases where fraudsters pose as IRDAI personnel and make these calls. Always remember that IRDAI does not make any such individual calls for assisting customers.
Also Read: Insurance Checklist 2020: Know about Life, Health and General Insurance Checklist for Policyholders in India
In case you too are a victim of mis-selling; you can reach out to Insurance Samadhan for expert advice and resolution at https://www.insurancesamadhan.com/register