Denial of insurance claims is well known, but denial of insurance proposal, to prevent you from getting life, health or personal accident policy, is also a reality. Insurers may deny you a policy under the garb of their ‘right to underwrite’. Worse, you have to declare your prior rejection, postponement, premium-loading offer or modification to the policy offered. It puts you in a bind. In our Cover Story, Raj Pradhan highlights numerous real-life examples to help you know what you can expect during insurance purchase. He suggests some steps that you can take to improve your chances of getting a proposal accepted.
We have often read about senior citizens being sold toxic financial products. Retirees are unaware of the risks. R Balakrishnan, on page 26, writes about the mistakes retirees make and what they can do to avoid losing their life’s savings. Once the money is invested in the wrong financial products, consumers find it impossible to get back their hard-earned money. In the Crosshairs column, Sucheta highlights two such problems. Her first piece shows how PACL owners are doing fine in Australia while depositors struggle to get the attention of regulator and investigators. Then there are the holders of corporate fixed deposits. Even after Moneylife Foundation highlighted the plight of over 1,100 savers who are struggling to get back their deposits from companies such as Helios & Matheson, Elder Pharmaceuticals and Jaiprakash Associates, government officials are showing no urgency to tackle the issue.
The Securities & Exchange Board of India’s (SEBI’s) technical advisory committee (TAC) has now conclusively shown that the National Stock Exchange’s (NSE’s) systems allowed certain entities to make huge profits by giving them faster access. Last year, the NSE tried to silence us by filing a Rs100-crore defamation suit against Moneylife, when we published a whistleblower’s report on it. Sucheta, in Different Strokes, highlights TAC’s findings on the serious lapses on the part of the NSE and its recommendation that SEBI take immediate action. Will it? Or will it let the wrongdoers, inside and outside the NSE, get away?