Insurers flout norms, use pyramid selling schemes
Pyramid schemes, where recruiting more sellers is more important than selling, aren’t new in India. An investigation by ‘Outlook Money’ magazine, the content partner for Mint’s personal finance coverage in the Business of Life section, reveals that such schemes are now being used by corporate insurance agents -- in violation of norms laid down by the Irda
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Insures are responsible for this. Max NY, Bajaj, Kotak and Reliance need to be showcaused for this. They have been encouraging this for few years now.
IRDA should be asked regarding the penalty meted out to this insurers and MINT should publish the same.
Else authorise MLM and scrap Agency licensing requirements.
Sandeep