The Financial Literacy program should start at the Finance Ministry. The FM says ‘Insurance Industry suffers …because of mis-selling’. Bang on.
If LIC does not mis-sell and collect huge premia on endowment plans (by the way ULIPs are just a form of endowment plans), who will bail out the PSU companies coming out with IPOs, FPOs, …etc.
Who, Mr. FM, will bail out your bank NPAs?
Who, Mr. FM, will bail out Kingfisher – directly or indirectly?
Where did the Mundhra scam originate? In Ulips?
What went wrong with UTI? did they sell ulips?
Have a heart, do not torture the numbers so much that they confess to anything. Yes sure Ulips were a brilliant mis selling tool, but mis selling has always been around.
Mis selling does not happen because some kid who is 12th class pass is doing it.
Mis-selling happens because big educated men and women sitting in Board Rooms create terrible products with 55% upfront commission.
Mis-selling happens because regulators obfuscate. Repeat obfuscate.
Mis-selling happens because SEBI creates a 100 page document called Offer Document, but the IRDA does not think that the customer needs ANYTHING at all.
Mis-selling happens because of the apathetic customer who just asks ‘where should I sign’
Mis-selling happens because when Debashis Basu and Sucheta Dalal want information about the forthcoming scam a.k.a Portfolio Management Scheme, they have to spend their OWN MONEY and take the regulator to court
Mis-selling happens because to understand what the regulator says, people have to attend a 5 year communication course, before they can begin to decipher.
Mis-selling happens because financial journalism (like many other things) dances to the piper’s tune. We all know that he who pays the piper calls the tune. Sad part is many of the dancers are stone deaf, they are just dancing to the beat based on what the others are doing.
Let me add just one thing. ULIPs are far, far superior to the traditional plans that the Old Lady of 1956 sells. Sad part there is nobody left in journalism who wants to write about that in the main press. Satyameva Jayate.
Post Footer automatically generated by Add Post Footer Plugin for wordpress.