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Post your complaints on IndianMoney if your bank continues to mis-sell insurance products

IndianMoney.com Research Team | Posted On Friday, November 23,2018, 01:56 PM

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Post your complaints on IndianMoney if your bank continues to mis-sell insurance products

 

 

The number of banks and financial institutions mis-selling financial products is on the rise. Banks are selling third party products like insurance plans and mutual funds to customers. After selling these products, banks wash their hands and do not listen to customer grievances.

If your bank has sold a financial product that was not suitable and didn’t match financial needs, make a complaint at the banking ombudsman, as you might be able to recover some of the money lost due to mis-selling of financial products.

IndianMoney advises you to understand various insurance products and guides you to avail the plan that is best suited for you.. Want to know more on term life insurance plans? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

What is financial mis-selling?

Financial mis-selling of insurance involves selling insurance plans which don’t meet financial goals or not updating customers on essential facts necessary for decision making. There are many cases where insurance agents have misled customers by not explaining the risks associated with the product.

How to spot financial mis-selling?

Insurers assign managers to banks who train bank relationship executives sell life insurance plans. The executives often indulge in pushing customers into buying these products to pocket high commissions.

As a bank customer, if you are looking for a loan or investing in a fixed deposit, remember, there is no compulsion to avail an insurance product along with it. The practice of bundling such products leads to forced buying and can result in mis-selling.

There are times when a customer wants to invest a lump sum in financial products involving minimum risk like a fixed deposit. But, due to greedy bank executives he ends up getting trapped into purchasing unsuitable financial products like insurance or mutual funds which don’t meet financial goals. Customers often get trapped by promises of high returns vis-à-vis the lower returns of fixed deposits. They land up buying ULIPs which are market-linked products and subject to high risk.

SEE ALSO:Post Your Complaints on IndianMoney If You Are a Victim of Financial Scams

Instances where you can file a complaint:

A customer can raise a complaint with the banking ombudsman in the following circumstances:

  • Improper or unsuitable third party product sales.
  • In case of no clarity on how the money would be invested.
  • Lower transparency of the product being sold.
  • Non compliance by grievance redressal unit
  • Delay in facilitating after sales service by the banks.

SEE ALSO:Post Complaint On IndianMoney If You Are Cheated In Home Loan

Steps for filing complaints against mis-selling of financial products:

Take a look at steps to file a complaint against mis-selling of financial products:

  • A customer can file a complaint with the bank grievance cell, both online and offline.
  • Write an application to the bank explaining the details on the nature and extent of the loss and the compensation sought. 
  • Wait for 30 days for the banks response.
  • If the bank does not respond to your application, file a complaint with the banking ombudsman.
  • There's no fee involved in filing the complaint with the banking ombudsman and you do not need to route it through an advocate. 
  • Generally, the ombudsman’s decision is final, but if you’re still unhappy with the decision, you may proceed to the consumer court with your complaint  as a last resort
  • Ponder before you do so. Court cases are expensive, and there’s no guarantee you’ll win.

SEE ALSO:Post Complaints On IndianMoney If You Are Cheated By Mutual Fund

Are you cheated by Insurance Agents? Lodge a complaint on Iamcheated.com which is a free online consumer complaints portal, which registers consumer complaints online and helps resolve them. If you have been cheated by financial service providers or if you do not receive any response from them. You can post your complaint on Indianmoney.com complaints portal IamCheated.com.

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