Insurance Mis-selling: Beware of this promise of insurance policy! You can be duped badly

Cases of insurance mis-selling are on the rise

Do you need a loan and if any one offers interest free loan? You only need to buy a few life insurance policies. When the insurance policy matures, the lending company will take its money from it. In the name of giving interest free loans, people are getting a lot of such phones these days. But be careful, this is a trap of those selling insurance policies through miss selling. Recently, a person living in Indore got a call from those selling insurance policies by fraudulently. He promised that person to get a personal loan at only three percent. That person only had to buy some insurance policies. An insurance policy was sold in New Delhi promising a loan of ten times the premium from a person.

The person who lures the customer collects the commission from the broker or agent.

In the name of getting loans, the incident of insurance miss selling is being seen fast not only in small cities but also in big cities. According to a data by Delhi-based grievance redressal platform Samadhan, 70 per cent of insurance misselling cases are related to selling insurance policies on the pretext of loans. Every month, Samadhan receives complaints where the insurance policy has been sold in lieu of loan to the complainant. Once a person who promises to get such a loan is trapped, they hand him over to the broker who pays him the highest commission.

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Insurance companies know but are not controlling the fraudsters

Insurance companies are aware of such frauds but they are not being curbed much. According to Bharti AXA Life Insurance, strict action is taken against the broker or agents in such a case. If it is proved that the insurance policy has been sold on the pretext of providing loan to the customer, then the contract of the broker or agent is terminated. The verification team of Bharti AXA Life Insurance asks the customer whether he has been promised a loan against selling the policy. Whenever such cases come to the fore, it is known that the person who cheated is not a part of this network. That customer disappears by trapping him and taking his commission. Therefore, action against such people is not easy. Therefore, whenever someone promises you a loan against buying an insurance policy, then be careful, you may be cheated.