Deceptive selling of market-linked insurance plans (ULIPs) under the pretext of 'high-yield bank fixed deposits' or 'one-time investment guaranteed schemes' has reached alarming levels across private and public sector bank branches.
How the Mis-Selling Scam Operates
Victims are often convinced to withdraw fixed deposits or maturity proceeds, promising 12% guaranteed annual returns. Instead, the bank representative issues a 10-year regular premium ULIP with severe surrender charges and market deductions.
Strict Regulatory Framework (IRDAI)
Under IRDAI Protection of Policyholders\' Interests Regulations:
- Insurers are strictly liable for the actions, fraud, and misrepresentations of their corporate agents and bank bancassurance partners.
- If forged proposal forms or misleading benefit illustrations are proven, the policy is void ab initio, and the entire premium must be refunded without deductions.
Act Fast—Speak Directly to Our Legal Experts Today.
Insurance companies rely on strict dispute limitation windows. If your health, life, or motor insurance claim was rejected or delayed, take immediate action before statutory time limits lapse.