UNIT LINKED INSURANCE PLANS
sunil
private operators to compete with our long standing and most successful
Insurance sector the LIC of India and the General Insurance of India.
Unlike other sectors, MNC's jumped for this and very soon they found
this to be a loosing proposition. So they thought of some schemes
where they could earn an extra dime. They came with a fantasy and
come out with the Unit linked Insurance scheme. Unit linked because of
2 reasons. First they are not permitted to enter into the financial
instruments directly. Secondly this will be a a source of income both
for financial trading and insurance. So far so good.
But the question is that why should a financial instrument be linked
with Insurance and how come the Government has given permission. It is
evident of links with the higher authorities. The government machinery
should be clear that the financial sector should not be mixed with
Insurance sector. The 2 should be kept separate and should function
separately.
Well what has been permitted is fine. Now these private sector
companies like Aviva and Bajaj Alliance started indulging in un-fair
trade practices. They floated lucrative financial schemes and
forcefully linked them with Insurance, when there was no need for the
same. They had to remain in the market of financial sector, so they
floated the schemes. Now the insurance business is very competitive and
the premium amount earned is so meager that they thought it was not
sufficient for them to pull on. This is where their intensions
deviated. They thought of means and ways to leach out more premium. The
process adopted is very simple.
They approach a consumer and the sales personality with his pep talks,
sell you financial instrument with Insurance coverage. Firstly while
selling the instrument they will say that it is insured and your life
risk is covered, but will never tell you that you will be paying
insurance premium additionally. Then they will ask for Medical
examination and say it is free. Once medical examination is conducted,
the reports are kept secret. They will complete some paper formalities
of which the poor consumer will not come to know. One fine morning he
will receive the financial instrument and the insurance policy. It is
then he will come to know of the hidden facts and the costs involved.
Then the next day he will receive a letter saying that there was some
problem in your blood sample and thus you have to be loaded with extra
premium. The second catch is that it is at this stage one comes to know
that the payment of insurance premium is to be deducted from his units
every month. It is here that the consumer comes to know of what has
been hidden from him in the total deal. So finally he lands up loosing
money at the dacoity system so devised by these insurance companies.
Those who raise a voice, are then obliged with the waiver of the
additional loading, and if you are a cow, then you continue paying a
higher premium and filling the coffers of these companies for the same
set of services.
Another new concept has started. This is like a marriage bonding with
the other institutions through their top bosses, like Banks etc. the
banks are forcefully selling the instruments to their customers. The
business is flourishing because to maintain the repo with the branch
manager and keep his account in good condition, one needs to maintain
and do what branch manager wants.
Well the business of ethics in India is going down the drains. Every
where and in every field one is trying to earn a dime even if he has to
speak lie, make some wrong commitments or force upon by influence. The
money should come by hook or crook.
We have 2 such banks involved in this above said un-ethical practice
with documentary proofs. We the consumes need to rise to the occasion
and shun such practices. Use such forums to raise our voice and make
people aware of these wrong practices.