Scribd
Upload
47 views2 pages

Un 1

Un-ethical practices are common in the private insurance industry. Insurance agents mislead customers by promising high returns that are not delivered by the actual policies. During the 15-day free look period, agents assure customers any issues will be fixed, but do not amend the policies as promised. Once this period ends, customers have no recourse. In one example, an agent promised a policy would fully invest Rs. 15,000 for 3 years with Rs. 3 lakh insurance coverage, but the actual policy only allocated 50% to units and deducted high charges, providing only Rs. 1.5 lakh insurance with no coverage for his wife. Some agents also force nominees to take new policies against settlement of death claims

Uploaded by

fahad
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
47 views2 pages

Un 1

Un-ethical practices are common in the private insurance industry. Insurance agents mislead customers by promising high returns that are not delivered by the actual policies. During the 15-day free look period, agents assure customers any issues will be fixed, but do not amend the policies as promised. Once this period ends, customers have no recourse. In one example, an agent promised a policy would fully invest Rs. 15,000 for 3 years with Rs. 3 lakh insurance coverage, but the actual policy only allocated 50% to units and deducted high charges, providing only Rs. 1.5 lakh insurance with no coverage for his wife. Some agents also force nominees to take new policies against settlement of death claims

Uploaded by

fahad
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Un-ethical practice in Insurance Industry

Many private insurance companies operates through channel partner or DSA’s. These agencies
in order to achieve there targets lure innocent people with false lucrative policies giving high
returns and insurance. On actual policies received by the customers he comes comes to know
he has been fooled. Though there is 15 days free look period available, this period is passed by
these culprits by assuring the customers that they are amending the policy wrongly issued by
mistake. Once the free look period is over the investor is helpless, no one is there to listen.
The insurance company keeps itself away from everything and takes no responsibility.

One of the example is when insurance agent from from Unicon Investment Solutions
approached one of my Uncle to invest Rs. 15000 for just 3 years in Bharti Axa Policy, that 100%
money will be invested and insurance cover of three lacs will be available for him and his wife
along with cash less hospital benefit upto an age of 70years.
But in reality he received a policy bond only units 50% were allotted and the balance amount
were deducted as policy charges, and future insurance for only 1.50 lacs was provided and
nothing to his wife.

Some of the Insurance agents are recycling death claims by way of forcing the nominee to take
a fresh policy against their settlement the claim settlement around in order to increase
their sales. There as also been a issue of improper service and irregularities like handing over
claims cheque to unauthorized person, recycling of death claims .

My friends Grandfather was hospitalized due to a mild paralytic attack ,when they made a claim
for hospitalization expense ,the insurance company refused to pay giving reason that they wont
pay for any heart related problem which was not mentioned by insurance agent while giving
insurance.

You might also like