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Insurance IRDAI seeks details of mis-selling complaints against top insurance distributors

IRDAI seeks details of mis-selling complaints against top insurance distributors

The insurance regulator has asked insurers to share details of mis-selling complaints lodged against their top 10 distributors.
Nishant Patnaik Jan 27, 2019

In order to curb mis-selling by insurance intermediaries such as agents, banks and brokers and insurance policies, IRDAI has asked insurance companies to share details of complaints against their top ten intermediaries and top 10 insurance policies.

IRDAI feels that that conduct of intermediaries and design of insurance products are the key reasons for mis-selling. In a circular, it said, “Unfair business practices complaints affects the sentiment of the insurance sector. After analysing various measures put in place by insurers in addressing mis-selling, we have observed that the market conduct of intermediaries and design of insurance products play a major role in reducing complaints.”

The insurance regulator has asked insurance companies to share such details within 10th day of the end of each quarter.

The insurance regulator has asked details such as name of intermediary, specification on distributor type such as agent, bank or broker, total number of complaints received, no. of mis-selling complaints, no. of policies sold, premium received, commission paid and action taken on the intermediary. Insurance companies will have to update IRDAI if they have given resolution in favour of complainant, partially in favour of complainant and rejected.

On mis-selling of insurance products, IRDAI has sought details such as name of policy, total no of complaints, no. of mis-selling complaints, status on complaints and no. of such policies sold.

 

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11 Comments
D B DESAI · 2 weeks ago
Very Very late. The damage has already been done continuously for a very long time. Rather than finding the missellers it is necessary to take care and formulate policies to avoid it.
Shashikant · 2 weeks ago
A welcome step, though may late. However it is the responsibility of the potential customer too. We check twice even when buying vegetables on the street how come we are negligent while buying a financial product ? What drives our (wrong) decision then ? Greed ?
Reply
Ranjit · 2 weeks ago
Only last week, one of my retired 71 year old army officer was sold a 10 year premium payment pension plan.
Prashant · 2 weeks ago
How is this misselling?
Ranjit · 2 weeks ago
71-81 age tak premium bharega. 81 ke baad pension shuru hogi, that too for a person who already has enough pension. Ohh comeon, if this isn’t misselling, what is!!
Reply
Shashikant · 2 weeks ago
It's unimaginable. To my knowledge the Brokers. Principal agents or individual agents only have not done missselling. The insurance companies are also to blame. Their agents tell people what they are taught to. How come the IRDAI does not ask public at large too.
Prashant · 2 weeks ago
Haha....Ab pachtaye hot kya jab chidiya chug gayi khet. After huge misselling by banks and brokers now IRDAI wakes up and asks for the details. Looks like they have just woken up from a very very long sleep. The surprising thing in this article is they have written agents first and then banks and brokers means this is an exercise to put agent community in bad light by either IRDAI or by Cafemutual. Banks missell and missell only so the simplest thing to do is to disallow banks to sell any third party products because they just missell to get more commissions.
Manish · 2 weeks ago
Very true... after being sidelined by SEBI by stopping upfront brokerage on account of mis selling????, this is also in line to defame Independent Advisers fraternity.
It's not enough to check intermediatery, first they shud check with the Insurance Companies itself by provoking misleading ideas in the mind of client.
Reply
chander shekhar · 2 weeks ago
Independent feedback, particularly from women and senior citizens, should be sought before issue of insurance policy/ Mutual fund units, especially for the third party products marketed by financial institutions/corporate. The same applies, in particular, for the sales of such products to new borrowers.

The idea should be taken in right spirit,without prejudice to any individual or entity.
Murari Mohan chattopadhyay · 2 weeks ago
At last IRDAI asked those from Isurer. Why not from policy holder? Most damage done by SBI Branches.
Ranjit · 2 weeks ago
71-81 age tak premium bharega. 81 ke baad pension shuru hogi, that too for a person who already has enough pension. Ohh comeon, if this isn’t misselling, what is!!
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