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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?

Insurance Samadhan

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.

Also Read:  The Menace of Mis-selling in Insurance Their Types, Reasons and How To Prevent It

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!!

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.  

You can also

Visit our website: insurancesamadhan.com

Call us on +91 9513631312

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Mail us at corporate@insurancesamadhan.com

Click here to register your case with us

Insurance Samadhan

Pragya Arora

5 Comments

  1. Bharti AXA has fraudulently and unethically trapped me by selling me two policies recently. One of their sales women once called me and told me that I am eligible for pre-mature of my policy (taken during 2018). Though I am not interested, on her persistent pressure I agreed for pre-mature. But she put one condition : for pre-mature I have to buy one new policy of Rs 42000/- P A. She also lured me that If I buy one policy of Rs 42000, I will get around Rs 5.30 lakhs for my previous policy, and If I buy 2 policies (another one of Rs 52000/-) I will get around Rs 8.30 lakhs payouts. She also told me that these are one time investments for whole life period and she told me not bother about the processing system. As per her promise I would get my money of previous policy within a month of processing new polices. Now it is almost 6 months are over. Still my previous policy not closed not they are not taking any action to cancel my new policies in spite of contacting/sending mails to all the persons in grievance cell. How can a company like Bharti AXA indulge in such a unethicaly, fraudulently duping and cheating gullible customers. I sent many requests explaining them of my plight ( I am a retired person with no income) but no one come forward to investigate this case nor resolve my problem.

  2. If one month has passed after raising grievance with the company and you are not still satisfied You can yourself draft a small bullet point complaint duly signed and lodge a complaint on Complaint Management Portal of Insurance Ombudsmen on http://www.cioins.co.in. Please note that details of policy, address, email, mobile number, Aadhar, etc would need to be given and uploaded. It’s easy and free. Best luck!

  3. Hi.
    Last year around September/October, I got a call from a Reliance Nippon Agent (Ajay Chauhan Mobie Number – +91 87632 08008) saying that a policy I had taken almost 10 years ago had matured but they could not transfer the maturity amount because I had paid only one premium. The agent said that since the policy had already matured, I would have to transfer the rest of the premiums of the lock-in period to another policy in Bharti AXA. Unfortunately, during that time I could not find the original policy papers but the agent suggested that he will transfer the papers from Reliance Nippon to Bharti AXA.

    I was sent a fund switch form, the policy number, etc. to be filled in the form. Two people from Bima Lokpal also called telling me about the same procedure. Unfortunatey, I did not realise that this was a fraud then. I now have 2 Bharti AXA policies which have been sold to me on false pretexts.

    What do you suggest should be my further course of action? Is there any way I can give up these policies and get my money back?

    Do suggest.

    Thank you.

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