Mis-selling Of Insurance products


Due to mis-selling of Insurance product the selling volume and trust of insured person both are decreasing from Insurance

Due to mis-selling Insurance companies are loosing there new customers even Existing customers are not paying renewal premium after paying the first year premium.

SO IRDA has now became little strict and started some terms for Insurance agents.
Each Insurance agent has to bring renewal premium or 2nd premium of atleast 50% of policies.
If 50% of there policy holder does not pay the second year premium then the license of the Insurance agent will be withheld by IRDA.

Mis-selling means without giving the full knowledge of loss and profit about the policy to the customer,with out understanding the requirement of the customer and selling by push in which product they are going to get more revenues.

One more term is there for Insurance agents to keep there license active they have to Either give 20 insurance policies with minimum first year premium of Rs1,50,000.
If they did not able to complete any of the above target then they have to accomplish with other option.

Since last five year selling of Insurance product has drastically decreased and the main reason behind is only mis-selling.

Insurance agents always says to customer just pay there year and you can get your money double and you will be able to withdraw full amount,which is not at all true.

and in the year of 2010 most of the policy did not get renewed because most of the policy has been sold by saying that this policy is one time premium and customer will be getting benefit of 15 years


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Comments

Author: Himani21 Nov 2011 Member Level: Bronze   Points : 3

I agree to this up to certain point but not completely.Some agents explain the policy with all the knowledge they have. The policy given to the customer is for 15 days free look period but no one is bothered to look at the policy at that time . So even though the agent has explained it we should ourselves re check it that does the policy given is as explained. If the customer has any doubt he should immediately contact the nearest branch or the agent. Yes it is the first duty of the agent to let the customer have the correct information.He should not only be concerned about the commission but he has to maintain a good relationship with the customer who has trusted him and agreed to invest money for his benefit. Please do also let me know about this response and how many of you agree to it.



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