Studies have shown that bank executives and insurers continue to cheat and mis-sell insurance products. Many bank executives do not understand insurance, yet continue to sell life insurance plans to pocket high commissions.
A common way bank executives and insurers cheat you, is they don’t mention the free look period. You can return a life insurance plan if you are not satisfied with the terms and conditions, within 15 days of receiving policy documents.
IndianMoney advises you to understand free look period, before availing life insurance plans. Want to know more on term life insurance plans? We at IndianMoney Complaints will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products.
How insurance agents cheat you?
They advise not to tick smoker or drinker in the insurance proposal form to save on premiums.
They push endowment plans and ULIPs which have high premiums and low mortality, just to pocket commissions.
They advice surrendering endowment life insurance plans and pick up new insurance plans to get commissions called churning of plans.
Insurance agents neglect to disclose important facts on insurance plans, leading to improper financial decision making.
SEE ALSO: Health Insurance Benefits
Easy ways to complain against insurer
- First write a written complaint against the insurance agent and send to insurer. Address complaint to insurer’s grievance redressal cell, collect an acknowledgement and wait for grievance resolution.
- The insurer must address your complaint within 15 days of receipt.
Common complaints against insurers:
- Bankers bundle insurance products with loans, cheating and forcing customers to avail these products. They are threatened that home loan will not be sanctioned, unless insurance products are availed.
- Banks force you to avail insurance plans before giving the locker facility.
- Banks cheat by issuing insurance policies in your name without consent and then say these policy documents were issued with incorrect contact details.
How to file complaint with insurance ombudsman?
You must first file a complaint with the insurer and give the insurer’s grievance redressal cell at least 15 days, to look into the issue.
Public insurers like LIC and Private insurers like HDFC Ergo, Bajaj Allianz, ICICI Lombard and IFFCO Tokio among others are covered by the insurance ombudsman.
All kinds of insurance complaints pertaining to life insurance, health insurance, car insurance, house insurance can be lodged with insurance ombudsman.
If complaint is with Consumer Forum, then you cannot lodge complaint with insurance ombudsman.
Iamcheated.com is a free online consumer complaints portal, which registers consumer complaints online and helps to resolve it. If you have been cheated by insurer or if you do not receive any response from them, you can post your complaint on Indianmoney.com complaints portal IamCheated.com.