How to protect yourself from insurance mis-selling

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Mis-selling in the insurance industry is quite prevalent. From bank relationship managers, insurance agents to insurance brokers, a lot of them mis-sell the policies. So what does one have to do to protect themselves and their loved ones from insurance mis-selling, and what all does one need to keep in mind? Shailesh Kumar, co-founder and insurance head at Insurance Samadhan in an exclusive interaction with Money9 decodes mis-selling of insurance policies.

Mis-selling can be of various kinds. It can be when a wrong contract is being made on basis of the wrong information. Sometimes in order to sell the policies, the maturity value is being told differently to the customers. Inflated maturity premium is promised. In some cases, the premium payment terms are not defined well. Agents also tend to hide pre-existing diseases and then the claims of customers are rejected later. Another example of mis-selling is that insurance is being sold as a loan or regular income.

The data shows that 35% of people do not pay renewal premium in the first year itself. This happens when the concept of insurance is not sold to the customers.

To know more, watch the full video