|Oct 09, 2013 9:37 am
||re: Insurance Rip off !!
| Musa R Kaiser
|| Hi Anand,
It's unfortunate that you had to go through the experience with HDFC. Unfortunately also, I know many others who have the same experience or are stuck with a financial investment they really did not need / want in the first place!
Let me first state that what has happened with you is pretty widespread and is happens across insurance companies & across the world. In some ways, insurance, especially life insurance is perhaps the bigger legal ponzi scheme in the world!
While I have no quick solutions to offer, let this (& many other similar instances) highlight the principle of Caveat Emptor - The principle that the buyer alone is responsible for checking the quality and suitability of goods before a purchase is made.
Since I bridge a few subjects: Medicine, Equity Markets & Financial Planning, I can say with certainty that the "system" is NOT set up to safeguard our interest. Indeed, it is so riddled with Conflicts of Interest that experiences such as yours, which the insurance industry label's as "mis selling" and I think most of us would call "cheating" are very prevalent.
Unless you, I & all of us take FULL responsibility of what we are doing with our money - in terms of REALLY UNDERSTANDING the products that we invest in, we will continue to suffer from such experiences. The cost of this, financial illiteracy, over a lifetime, is well above 50 Lacs - 1 Cr PER PERSON!
Let me add that I state all of the above from personal experience, industry inside knowledge & market data that I am happy to share with anyone willing to listen. This is also one motivation why Bangalore Investors Club was set up.
Coming to what you can do ...
1. Take it up with the IRDA ombudsman - I doubt anything will happen since you would have signed on the T&C before the policy was issued. So in effect, you have legally stated that you have UNDERSTOOD the policy.
A very important to note:
In law, YOU applied for the policy, the policy was not offered to you! Everyone, please read your application forms!
2. Go to Consumer Court - as already suggested.
You will probably loose the case in my opinion. Sorry for the bad news!
3. File a case against the Insurance Advisor - I think it will be the first of its kind & should scare the hell out of him & others of his kind!
4. It's probably too late to do this, because the policy has been closed, but see if you can get help for Moneylife Foundation in Mumbai - they have had some success in such matter in helping their members.
5. Based on what you have stated, I overall & very broadly think you in the long term, you probably would have lost a lot more by continuing the policy so the only good news is that your loss now is much smaller than it would otherwise have been.
6. MOST IMPORTANTLY - Get educated on the world of personal finance, financial products, investing etc ... It's amazing how most of us spend 5-10 years getting ourselves a professional degree to get a job / consult, make good money there but so easily then loose this hard earned money via such not-good-for-me but good-for-the-industry investments!
Not sure if any of the above helps. But I hope it's at least been some food for thought. Do post if there is anything I can support you with, would be happy to do what I can.
Dr. Musa R. MD, CMT.
Disclaimer: I am a medical & financial industry insider so I state the above from first hand knowledge & experience. Sad to say that quite a bit of what I about the sales process in both these "industries" is very unethical.
ps: My family is one more victim of this & other such legal "scams"! That's why I decided that I will take "charge" of my money - not some agent / company / system!
pps: Couldn't help this, did you not state on your ryze page "Quintessentially a Nut !!"?
Private Reply to Musa R Kaiser (new win)