Coimbatore Consumer Cause seeks IRDA intervention
Agents misleading public on unit-linked schemesCoimbatore based Consumer Rights Group, Coimbatore Consumer Cause (CCC) has appealed to the Insurance Regulatory and Development Authority (IRDA) to make insurance companies accountable for the "misleading" claims made by some agents while they sell unit-linked products. The Coimbatore Consumer Cause (CCC), in a letter to IRDA, said that despite the authority cautioning the public about false projections, the message has not reached them properly.
The insurance companies also did not give due importance to it and did not bother to inform the correct position to customers, the letter, a copy of which was released to the media by CCA secretary, K Kathirmathiyon, said. He said as per the IRDA norms, the insurers were required to project their returns at the rate between six and 10 per cent only, but some agents projected a growth rate between 25 to 30 per cent.
Despite knowing the facts, the companies were keeping "utter silence" on it for want of business, he said adding that the companies should be made accountable for giving such misleading information. The companies should issue advertisements in print and electronic media about the actual projected returns of the policies, he said. The licences of agents who were providing misleading information, not approved by IRDA, should be cancelled.
When members of the public come to know about the "truth" of the policies, they should be permitted to withdraw the money with reasonable rate of interest from insurance companies, Kathirmathiyon said.
