Bank Insurance Scheme – A cheat

POSTED BY ketan shah ON June 18, 2013 12:22 pm COMMENTS (2)


Dena bank 5 Years back came out with Scheme in tie up with Oriantal Insurance for providing mediclaim at highly attractive premium i.e. Rs. 7000 for 5 Lac cover.

We hold various accounts with dena bank and as per their tie up we got ourselves covered (5 Policies) after paying 2 years premium, when the 3 rd year renewal came we were informed that the tie up with Oriental is no more there and the same policy will be transfered to United india Insurance for same Premium..

Now we have paid 2 years premium with United India and the 3rd year Premium we are informed that Dena Bank has increased the Premium 2 -3 fold for policies…

Now trusting Dena bank and paying 5 years of Premium which comes to almost 2 Lacs we are stranded and forced to pay high Premium for my parents and now we are in a fix If we dont pay and we cant even change the company since parents are 65 +

we were assured that the scheme shall  continue since it is bank tie up and therefore we got our previous pvt policy cancelled which had a very High Premiumm for my Parents (20000 for 5 Lac)

Please advice if we can approach IRDA for the same…

2 replies on this article “Bank Insurance Scheme – A cheat”

  1. ketan shah says:

    Dear Manish,
    I do understand what you are saying, what I fail to understand is that why always we the people are subject to be duped… all the policies are One way contract which binds the customers and leaves loose ends for companies…

    I feel IRDA too is hand in glove for these things… They know it quite well how the Insurance Companies are cheating the customer, wether it is in settling the claims or premiums but do not wish to or cant do a thing about the same.

    Now they have gone a step forward, they have stopped the commission of agents. So the agents are backfireing on US as always… They are claiming charges or commission for every claim that arises…

    IRDA has got the Mediclaim portability but that too is nothing but playing with customers.. They should come out with AGENT Portability where the agents who dont provide services to clients can be changed…

    But I guess in India, Indians are here to be cheated due to lack of awarness and Y should I care attitude..

  2. Hi Ketan

    This is exactly why you should never buy health policies through tie ups . Most of the customers keep bragging about the low premiums and excellent benefits of a bank tied up health policy, and I keep telling them not to go for it , because its a weak relationship with insurance company because its a group cover for bank customers , Which is bound to change over period . Its always an additional thing over your main health insurance policy .

    I can understand your frustration, but I would say it was a big mistake few years back that you fell for it . I do not think you have a very strong ground for any compensation , because bank could not be held responsible for anything here , because even in your agreement it would be written that the tie up can be broken anytime .

    If I were a judge of the court, I would not understand on what ground I should compensate you , Trust should come only after you understand the agreement and what you are getting into ? Which terms and conditions was broken by Dena bank ?


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