Majority of people ask their friends or relatives to recommend an Insurance agent or buy the plan the agent suggests when it comes to buying a policy. Generally, agents’ natural inclination would be to suggest a plan which gives them good money.
It has been observed that buyers should always contact the insurance agent in India from a point-of-view of financial planning. Its customers’ duty to check the compatibility of the plan with their needs and what instruments the insurance invests in when the insurance service provider recommend a policy.
In fact, financial planners suggest that it is good to check agent’s details as well. Insurance Regulatory and Development Authority of India issued the draft regulation on Appointment on Insurance Agents and has also listed a code of conduct for insurance agents.
In case of mis-selling complaint, the insurance company cannot escape its responsibility just by leaving the blame on the agent. Today, it is not compulsory for agents to disclose their fees.
But, as per the proposed code of conduct, if customers ask for information regarding their fees, then agents have to disclose it along with policy premiums and other important facts related to policy. Therefore, when agents ask you to sign the document merely or hide any details, and then don’t do it.
Instead, file a complaint with the insurer about the agent. Then, insurers must take strict action against the agents and resolve maximum complaints from their end. Agents who work for more than one insurer should suggest the customer on plans of both insurers and the best insurance policy online suited to the customer.
Policyholders may miss their premiums in case their agents switch the insurer mid-way. It is true that insurers do re-allocate such plans to other agents, but it’s a hassle for all involved.