Mis-selling is rampant in Indian insurance. Here's how to identify, report, and recover:
Common Mis-selling Tactics
- 'This is a fixed deposit with insurance benefit'
- 'Free insurance with your bank account'
- 'Only 3 years premium, lifetime coverage'
- 'Guaranteed 15% returns'
- 'IRDAI approved scheme' (IRDAI doesn't approve schemes)
How to Identify Mis-selling
1. Promise of returns in traditional plans (only ULIPs have returns)
2. Sold without explaining exclusions
3. Premium amount different from what was promised
4. Policy benefits misrepresented
5. Free look period not mentioned
Your Recovery Options
Option A: Free Look Period Cancellation
- 15 days from receipt of policy document
- 30 days for electronic policies
- Full refund, no questions asked
Option B: IRDAI Complaint for Mis-selling
- File at igms.irdai.gov.in
- Mention: agent code, branch, misleading statements
- IRDAI directs insurer to investigate
Option C: Insurance Ombudsman
- Award up to ₹50 lakhs
- Free, binding on insurer
- Include: agent's promises vs actual policy terms
Option D: Consumer Court + Criminal Case
- Consumer court: Refund + compensation + legal costs
- Criminal case: Cheating (Section 420 IPC) against agent
Evidence to Collect
- Call recordings of sales pitch
- SMS/WhatsApp promises from agent
- Bank statements showing premium debit
- Policy document with actual terms
- Witness statements if group mis-selling
Compensation You Can Claim
- Full premium refund
- Interest on premium (8-12%)
- Compensation for mental harassment (₹10,000-5,00,000)
- Legal costs
Don't let agents steal your money. Fight back with these tools!