In the last few years, there has been a huge increase in the number of mis-selling of policies by insurance agents by giving wrong information. Thousands of such cases come to light in consumer forums, in which customers complain against insurance agents and insurance companies.
Preparations are being made to implement new rules to stop incidents like miss selling in the insurance sector. Many insurance agents have also been defrauding people by giving wrong information about the policy. But now it will be made mandatory for any insurance agent to keep audio-video records while giving information about the insurance plan.
What are the figures of miss selling?
In the last few years, there has been a huge increase in the number of mis-selling of policies by insurance agents by giving wrong information. Thousands of such cases come to light in consumer forums, in which customers complain against insurance agents and insurance companies. The Consumer Affairs Ministry wrote a letter to the Finance Ministry asking for the implementation of the new rules.
In this new rule, whenever an agent sells a policy or gives information about the policy to someone, he will have to record video-audio. During this time the agent will have to inform the customers about all the terms and conditions. So that no agent can give wrong information to the customers.
This causes more disputes
Regarding complaints related to insurance companies, Consumer Ministry Secretary Rohit Kumar Singh mentioned in the letter that most of the disputes that arise between insurance agents and customers are only due to wrong information about the policy. Many insurance agents tell consumers only the good points of the policy and do not tell them about its shortcomings. Due to which, later on, a situation of dispute arises between both the parties.
Description should be in clear language
The Consumer Ministry also mentioned in the letter that many terms and conditions are not written in clear language in the language of insurance companies. Due to which customers have difficulty in understanding them. Keeping the rural people in mind, the terms and conditions should be written in simple language.
Who sets the rules?
Right now only the Consumer Ministry has asked the Finance Ministry to implement the new rules. But the final decision on the rules related to insurance companies rests with the Insurance Regulatory and Development Authority of India.
