Mis-Sold Multiple Insurance Policies- Insurance Mis-Selling

Do you know, there are cases of mis-selling in insurance where fake agents misrepresent information and sell more than one insurance policy to customers?

Read how Tushar was mis-sold six policies by a fraudulent person:

Tushar works in a mobile repair shop. Suresh was a regular customer at the repair shop. One day, Suresh informed Tushar about a life insurance scheme.

Suresh: Hi Tushar. How are you?

Tushar: I am fine. Just worried about my family. You know na how covid cases are increasing day by day. What if something happens to me, how will they live? What will happen to their future?

Suresh: Why are you worrying so much? Buy a life insurance na. If something happens, then the company will help your family financially.

Tushar: But I have no idea, from which company should I buy an insurance policy. And I don’t have any clue about the terms and conditions of the policies. You know na, insurance companies use technical language, I won’t be able to understand a thing.

Suresh: Don’t think too much. I will help you. I know a company that provides a life insurance policy that will be suitable for you. You just need to give me your documents, I will take your signatures on one of the documents. You also need to pay the premium money quarterly for 10 years.

Tushar: How much will be the premium?

Suresh: It will be Rs. 10,000 per quarter.

Tushar: How will I pay the premium? I don’t have that much time to go to the company.

Suresh: Why are you worrying so much? I will collect your cheque every quarter and submit it to the company.

Tushar: Thank you. You are such a well-wisher.

Tushar bought the policy that Suresh brought to him. Every quarter, he gave a cheque to Suresh and signed some receipts. Later, his nephew saw those receipts and informed him that those were not premium receipts, but the receipts of six new policies. The premium he was paying every quarter, was not the premium for one policy, instead, it was the amount he was giving to purchase a new insurance policy.

Tushar was unaware of the five other policies as he trusted Suresh and never read the receipts he received. Also, Suresh mentioned the wrong contact details of Tushar in the policy documents. Therefore, Tushar never received any verification as well as renewal calls from the insurance company.  

This is a case of mis-selling and fraud in insurance where a person sold six new policies to an innocent person.

Therefore, you must read your policy document carefully. Every insurance company gives a verification call to its policyholder at the time of a new purchase to check for any fraud done. In addition to this, insurance companies give a renewal call to the policyholder to remind the policyholder to pay the premium on or before the due date.

If you are a victim of mis-selling and need help to fight your case, then contact Insurance Samadhan. We have resolved 14,500+ customer complaints related to insurance. If you want any guidance, then you can contact us. We’ll be happy to help you.

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