Why ULIP mis-selling has become rampant ?
Why is there so much mis-selling of ULIP? How to avoid this mis-selling? Who should take ULIP?
Employees’ Provident Fund Organisation (EPFO) provisional payroll data, released by the organisation on October 20 shows that for the month of August 2021, EPFO added roughly 14.81 lakh net members. For the first five months of the current fiscal year, the data shows a rising trend in net payroll. When compared to the previous month of July 2021, the net subscriber addition for August 2021 grew by 12.61%.
Around 9.19 lakh new members have joined EPFO’s social security scheme for the first time, out of a total of 14.81 lakh net subscribers. Approximately 5.62 lakh net subscribers left EPFO but returned by changing jobs within the businesses covered by the EPF & MP Act, 1952. Instead of seeking ultimate withdrawal, the subscribers chose to keep their EPFO membership by transferring cash from a former job to their current PF account.
The payroll data when compared by age group, shows the age group 22-25 years with the highest number of net enrolments, with 4.03 lakh additions in August 2021. The age group of 18-21 is next, with roughly 3.25 lakh net enrolments. This shows that a substantial number of first-time job searchers are entering the organised sector employment, accounting for around 49.18 percent of total net subscriber additions in August 2021.
The companies covered in the states of Maharashtra, Haryana, Gujarat, Tamil Nadu, and Karnataka are in the lead, adding roughly 8.95 lakh subscribers during the month. They account for approximately 60.45% of total net payroll addition across all age categories.
Female enrolment accounts for around 20% of the total net subscriber increase during the month, according to gender data. When compared to the previous month of July 2021, the net addition of female subscribers increased by around 10.18% in August 2021. This is partly attributable to the fact that female members leave at a lower rate during the month.
According to industry-specific payroll data, the ‘expert services’ category (which includes manpower agencies, private security agencies, and small contractors, among other things) accounted for 39.91% of total subscriber additions for the month. Industries such as trading-commercial establishments, engineering goods, building and construction, textiles, garment making, hospitals, and financing establishments have seen an increase in net payroll additions.
(With inputs from Press Information Bureau)