Insurance policies sold on promise of erecting mobile towers

In a case of mis-selling of insurance product, Hoshiarpur-based four brothers were duped after they were sold life insurance policies on the promise that they will receive monthly rental income from mobile towers to be erected on their agricultural land.
The brothers filed a complaint with Chandigarh Insurance Ombudsman in March this year against a private life insurance company seeking cancellation of insurance polices issued to them and sought refund of Rs 12.37 lakh.
In their complaint, Amrik Singh and his brothers, residents of Arhana Kalan in Hoshiarpur district of Punjab, said an agent representing the insurance company had offered them to erect 4-5 towers on their farm land and in return of which they would get handsome rental income.

As per an agreement, they would have to submit refundable security with the company for erecting towers.
The complainants deposited a sum of Rs 12.37 lakh with the life insurance company as security. However, they were issued 10 life insurance policies by the insurance company and no towers were set up as promised, according to the complaint.
When the complainants learnt that they were duped, they approached Chandigarh Insurance Ombudsman against the insurance company for cancellation of the polices.

The said insurance company, which declined to contest the case, has offered to settle the complaint by refunding the full premium amount to complainants, said an official of Insurance Ombudsman (Chandigarh) here.

This is not the lone case as mis-selling of insurance products continued to be the top among the list of complaints filed by aggrieved customers with the Chandigarh Insurance Ombudsman here.
Maximum number of complaints against life insurance companies pertained to mis-selling of policies, an official of Chandigarh Insurance Ombudsman said.
Sometimes buyers are promised gold coin, cash back offer, guaranteed return and in some cases, trip to foreign country on purchasing insurance policies by unscrupulous private insurance companies, he added.
With complaints related to insurance products continued to flow in, Chandigarh Insurance Ombudsman has disposed of around 3,000 complaints for the period September 2012 and September 2013.

However, 1,646 complaints including life insurance and non-life insurance are still pending with the Ombudsman office, he added.
Chandigarh Insurance Ombudsman received 3,763 complaints in 2012-13 with maximum number of complaints against life insurance companies originating from Punjab at 1,260, followed by Haryana at 817 and Chandigarh at 350.
Chandigarh Insurance Ombudsman has jurisdiction over Punjab, UT Chandigarh, Jammu and Kashmir, Himachal Pradesh and Haryana.