How can you zero in on mis-selling of life insurance?

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IRDAI has come up with multiple guidelines for checking the problem of mis-selling of life insurance plans in the sector. Several efforts have been taken by the regulator to lower such cases of mis-selling in the life insurance segment.

7 ways to identify mis-selling of Life Insurance Policy:

  • The first pitch should be carefully analysed- Life insurance is a long-term product and selling the same is tougher. Many insurance agents may approach the customer with short-term insurance policies. In case the agent has a short-term savings product of 4-5 years which is good and also provides insurance coverage, buying a policy from him/her may be a slightly risky affair since life insurance is not tailored for ensuring benefits in the short-term.
  • Always analyse the illustration of the life insurance plan- Every insurer will definitely possess a plan calculation for bypassing any situation where the customer is wrongly guided. Ask the agent for the standard illustration of the life insurance policy selected. This should be sought in place of any calculation done on a piece of paper in front of you.
  • Fill up the application by yourself- Spend some time yourself in filling up your application form. Many agents only get your signature and fill up the forms themselves. However, this is avoidable by all means. Read everything carefully before signing.
  • Always take stock of medical clauses- Many agents do not provide medical information and clauses since the insurance company may have follow-up queries in case of any medical issue. This may lead to delays and hence agents skip the same. Always check whether any medical details are required for the life insurance policy since this is vital for smooth claim settlement in the future.
  • Always double check the name of the policy- In many cases, agents convince customers to buy policies which are different from the ones they originally desired to purchase. Always check the policy name and coverage information while filling up your application form.
  • Always venture deeper into the policy details- The rewards should not be the only thing attracting you. Venture into the deeper details of the policy, clauses, terms and conditions and so on. Get the brochure or do a little digging on the insurance company’s website.
  • Await the call from your insurance company- Policyholders usually get calls from insurance companies in order to make sure that all terms and conditions have been clearly understood and accepted. In case you do not receive your insurance company’s call, contact their number for customer care/service. There have been several fraudulent people calling up customers and wrongfully claiming to be from IRDAI. You should always remember that IRDAI does not make individual calls to customers for assisting with their insurance policies.
Also Read:  Here’s what to keep in mind when a death claim is being filed

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Shailesh Kumar

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