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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It is really pathetic that nowadays so many insurance companies are using wrong methods to get business through various channel. How come an unknown guy can sell the product without knowing the a-b-c of the product? If it continues like this even a vegetable merchant will be able sell insurance as part of his business. People should be thoroughly be explained about the benefit of the product rather than giving benefit to the agent. How come all insurance companies appoint agents without getting the approval from Irda--if so why do we need Irda for insurance? The whole system has to be changed without any delay otherwise the purpose of taking insurance by the individual will be defeated.
ramamurthy