Over the past few years, frauds in life insurance have been rising steeply. It has become a playing ground for big players who are willing to dupe consumers for their own gains.
Selling a policy by making false promises, fake calls in the name of the regulator IRDA and sticking a person with unaffordable regular premium policy are some of the ways by which consumers are taken to the cleaners. People are falling into the trap of buying the wrong insurance. They are even taking a loan to buy a policy. Insurance brokers are creatively splitting the money into policies from several insurers so that the invested amount with respect to salary income does not raise an alert.
When the licensed entities are out there to snatch away your savings, can you trust the system? The insurer makes merry when the policy has future premium that remains unpaid, as the first premium is legally for theirs to keep. It’s daylight robbery. Read all about it in the Cover Story which is based on actual cases that have come to Moneylife Foundation’s Insurance Helpline.
In her Different Strokes section, Sucheta brings to focus Prof R Vaidyanathan’s crusade for the informal or small scale sector. This sector, of traders, small factories and self-employed, etc, contributes 45% of the national income as against 15% of the big business which gets all the attention of media and policymakers. Not only that, small businesses have poor access to loans and are crushed by the rules, regulations and tax department’s arbitrary actions. Will the new government do something about it?
Sucheta also brings to light the murky details of United Bank’s story where Archana Bhargava was appointed as the CMD, despite a poor trackrecord in her previous job with Canara Bank.
The stock market has hit a new all-time high and investors have started putting money into equity schemes again. Will they regret, as before? Check out our article in the Fund Pointer section.
As usual, please do write to us about how we can improve. In the next issue, we will announce a major initiative that will change your ‘Money Life’ in a profound way! Watch out for it.
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