Too many times we have screamed that the BFSI space is customer unfriendly….let us see what we can do about it. More importantly, what the IRDA should do:

1. They should be allowed to sell ULIP ONLY to a person who already has a term insurance of Rs. 10,00,000.

2. When they are selling to a senior citizen (buying on behalf of somebody else because a 70 year old cannot buy life insurance anyway for himself) 2 managers of the life insurance company should sign a personal declaration that THEY (not just the agent) have explained the product to the client. One of them should be from operations or compliance.

3. When we go to shop and ask for Bournvita he gives it to us. Ditto when we ask for horlicks. However, when we ask for sleeping pills, we are asked ‘do you have a prescription’. Exactly like this ULIP should be sold only on a prescription.

4. There has to be a proper sales process, and the client’s signature should be obtained in the ‘customer appropriateness form’. This should be counter signed by the ‘beneficiary’ (if the father is buying on behalf of a major son/daughter). A copy of all this should be sent to the customer.

5. Why the hell cannot a company refund the premium after 45 days? why this 15 day deadline (which is from the date  of receiving the policy document) and brilliantly manipulated by the operating staff?

6. Customers who find the TV/ fridge INAPPROPRIATE can return it even after some time…why can this not be made applicable to life insurance too? Cut the costs like medical expenses, stamp fees and give the refund.

7. Mis selling is far far greater than selling. If the CEOs and the IRDA do not know this, I will be amused.  High time the managing director started issuing a monthly statement saying ‘there has been no mis-selling by any of my staff or agents’.



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  1. Sir, points 1 and 2 won’t make any major change in people’s perception because
    – It is easy to discontinue a term insurance than ULIP.
    – Forget managers, even if CEO of the company says that he has explained the policy to the customer (means customer has signed the agreement that they explained to him), it is quite possible that they will still hide important facts.

    Point#3 is rocking. Liked that very much.

    One more point I would like to add.
    8. Make compulsory to declare tentative surrender value of the ULIP (based on 0%, 5%, 10%, 15% returns from the actual funds invested in the policy) from first to last year (even if it is zero for first few years).

    Regarding IRDA, I doubt their willingness to work in right direction. ULIP is the best profit making product for these companies. It is not difficult for them to manage any sarkari babu to keep their business going.

  2. People have too much trust in their bankers/doctors or anyone who seems to exude an air of calm authority. The right attitude to have is like the one towards a subziwalla – full of skepticism and combative questioning. That might help reduce misselling. No amount of policing or signing declarations by the seller will help if the buyer is not willing to help himself

  3. I would like to add point no.8

    Please read and If anyone could at least read (and understand) these sites for minimum three months , then they can quote ala Munger “All I want to know is where I’m going to die (ULIP’s, Endowment, Money back, etc.) so I’ll never go there.”

  4. In place of declaration by staff let the insured be required in his own writting the following declartion.

    I understtod that investment in ULIP will not gurantee any return and there is risk that I am even will not get the amount invested. I was further infored that I had to pay premium for 20 years and not 3-5 years.

    this declaration should be in english for graduates and for others in their mother tongue.

    let se how many ULIPS will be sold

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