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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MLM needs to stopped immediately.One Tirupati Marketing sold hundreds of policies throu its MLM of which more taht 50% are lapses. No Agent is accountable. High selling pressure on the Branch Manager compel them to look to the other way to such malpractices. IRDA should bemore watchful.
nirav