Money Jun 8, 2013
"And you shall take no bribe, for a bribe blinds the clear-sighted and subverts the cause of those who are in the right," says ancient wisdom.
This applies to quid-pro-quo gifts too. We are not talking about promising a gold coin on booking a car, or getting rewards points for using your credit cards and the like. There's nothing wrong with these. But when you are given or promised a gift or any kind of incentive to buy an insurance policy? There's something definitely wrong with this deal.
According to a story published in The Economics Times, today,insurance agents are resorting such practices in order to shore up their sales. "Buyers of insurance policies are promised gold coin, cash back, guaranteed return and in some cases a foreign trip by some private insurance companies that mis-sell products, the Insurance Ombudsman was told," the report said.
The maximum complaints which the ombudsman received were regarding mis-selling of insurance, where the customer were promised fancy holidays abroad, gold coins, and what not.
Of course, once the cheque was given by the customer, he neither received a policy nor the gold coin. The report said that another complainant was promised 11 percent annual return for 10 years at the time of policy purchase but when he received policy documents, there was no mention of guaranteed return. Read the full Economics Times report here.
Remember as per IRDA norms, an agent cannot offer you a monetary gift or any kind of incentive to buy an insurance policy from him. If you meet such an agent, he is breaking the IRDA regulation and cheating you won't be too difficult for him. There is a good possibility that he could be selling you a policy which you do not need at all. So, don't get tempted by gold coins, and overseas trips, you might just land up being victim of mis-selling.
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