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POSTED BY ON April 11, 2011 4:09 pm COMMENTS (10)
Hi All
I am looking for some real life cases where some financial product was missold to public , It can be any things like
– Selling ULIP or Endowment policy along with loan product
– Selling high risk product to senior citizen with out understanding the risk appetite
– Wrong information about the policy and false claims
Manish
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@ Manish,
see this. http://taxsavinginsurance.blogspot.com/2010/01/lics-jeevan-saral-table-no-165.html
The jeevan saral policy is very very missold policy. It is given to lower strata people without due consideration and who are not at all aware of all options as an alternative to fixed income. its a very sorry state of affairs. And it is very well promoted by most lic agents as well as the company.
1 year back a employee of karvy stock broking ghaziabad sold me a policy of family health plan (family floater) of national insurance, at that time he said that there is no need to show pre existing decease bczz this policy cover all pre existing decease exept some major decease, i took this policy but after hospitiization of my father TPA refused the claim bczz of not declair of pre existing decease. i paid 50.000 to haspital. this is pure mis selling ,and his sinior also support him when i contact him. what i should do in this mis selling.
as i understand, there is a world of difference between financial illiteracy and mis-selling.
if the agent tells you that you can redeem after 3 years, he is not wrong and i would not consider that to be mis-selling. half correct information is not wrong information.
foolishness and greediness is not innocence. if someone says that you will get double the money in 2 months or so (by some special ponzi schemes), the so called investor deserves to lose money and not sympathised by being “missold”.
Misselling is deliberate wrong information, as i understand.
agree
@Ramesh, I agree with you that no incortrect information was provided.
But my view is that hiding important information is also mis-selling. Agents are educated and trained not just how to sell the product but which product is suitable for long term, short term, age group etc. It is their responsibilty to guide buyers towards right product.
Another thing is that, if i come to you and ask suggestions, then i am responsible for those suggestions.
But if you come to me and suggest a product and gets commission for that and you hide some important facts/disadvantages. It is definately mis-selling.
Sadly, agents are not trained in that manner. They are fed data and “lines” for marketing only and not for a proper financial planning. Most of the agents are “parrots”. they are not financial planners (though, many of them also do not know much about financial planning).
An agent cannot and will not provide you all important information. No bank manager will tell you that the FD that he is selling to you will give you subpar return than inflation. The govt will not tell you that the PPF on which it is giving 8% is actually eroding your purchasing power, when it itself has caused / promoting a double-digit inflation. etc,etc.
long back i have been sold a ulip policy, i was very new that time and agent told me that there is only 3 years lockin, and i can redeem it just after 3 years. Hi did not explain me any disadvantage when redeeming just after 3 years.
Thank god, i was enough educated within 3 years and decided to carry the policy for long.
Another instance is that, my father got retired few months back, he recevied the pension and then many of his couleges suggested to put money in ULIPs on grand children names. They were very innocent actually, and saying that we can get 15 % return. They did not know that this product is actually for long term.
Nitin
Which city are you in ? Can you share your phone number with me . Would you be willing to share your experience on a NDTV show ?
i think most of the people who bought ULIPS have gone through similar situations.
i have asked atleast 100 of my couleges/relatives/friends, all of them bought ulips because of agent or their parents. None of them bought is after research or planning.
i am ready to share my exp.
Nitin
Thanks for sharing that , I needed the info before 2 days back actually 🙂