Mis-selling and Fraud in Insurance Policy and the legal perspective to it

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Insurance industry in India is one of the leading sectors of our economy and is a significant contributor behind the rise of country’s GDP. But, it is hemorrhaging because some fraudulent minds are draining the endeavors of real insurers by mis-selling policies and some fraud entities committing insurance frauds. IRDA has been issuing warnings to common public to stay alert and not to become prey of mis-selling policies offered online. The question is how alert you are?

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Consequence of Mis-selling Insurance Policies in India

With growing possibilities of getting contagious diseases and potential health concerns, insurance is one of the most powerful shields in the hands of human that can safeguard them from their financial difficulties during their unpredictable times. Imagine the consequences of mis-selling wrong products where the seller hard-sell an insurance policy without understanding your actual needs and due to their inadequate knowledge about the product. Yes, after buying such a policy, you would be left with paying unwarranted premiums for years. When the time will come to claim insurance for your needs, you will then realize that the policy does not cover those risks, expenses or claims. Mis-selling of insurance policies is inevitably thriving in the market and causing serious havoc on the wallets of consumers. Unfortunately, the responsibility falls on the poor consumer to first gauge his needs and then thoroughly understand what that policy covers other than the premium amount.

Frauds in Insurance- A menace

Generally, people are not aware about the changes in the insurance laws, new measures, exclusions in policies, and other relating information about insurance policies and settlement processes. As a result, they are being constantly fooled by fraudulent entities and they end up buying a fake or misrepresented insurance product. These entities offer attractively low amount of premium or misguide consumers via online medium and innocent people become their prey. They fail to verify or consult about other important things like their IRDAI registration, insurance agent’s name of the insurance companies, and authenticity of website before making digital payment. Beware of such frauds and take caution!!

Also Read:  10 Common Reasons Why Car Insurance Claims Gets Rejected

If you are having any doubt or dilemma about any Insurance product you intend to purchase online and should you have a need to understand how to ensure the authenticity of Insurer/agent, you can confidently contact us at Insurance Samadhan.  

To reach us at InsuranceSamadhan.com –

Call us at – 844 844 0626

Mail us at – corporate@insurancesamadhan.com

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Pragya Arora

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