You went to your bank to open a Fixed Deposit. The bank relationship manager told you about a 'better option' — a policy that 'works like an FD' but gives better returns. You signed the forms. Later, you realised it was a life insurance policy — not an FD at all.
This is one of the most common insurance frauds in India. It is called bank mis-selling, and it is illegal.
Why This Is Illegal
Under IRDAI regulations, insurance must be sold only after providing the customer with full, accurate information about the product. Selling insurance by calling it a 'Fixed Deposit' or 'FD-linked scheme' is a clear violation of:
- IRDAI (Protection of Policyholders' Interests) Regulations 2017
- Indian Contract Act Section 17 — misrepresentation
- IRDAI (Insurance Brokers) Regulations — mis-selling by broker
- Consumer Protection Act 2019 — unfair trade practice
Who Is Liable?
All three parties can be held liable:
- The insurance company — for accepting the mis-sold policy
- The bank / broker — for mis-representing the product
- The relationship manager — for facilitating the fraud
Can I Get a Full Refund?
Yes. Even if the free look period has expired. Even if you have paid 2-3 premiums. Even if the policy is 2-3 years old.
How We Help
- We prepare a detailed complaint with IRDAI mis-selling regulation citations
- We file with the company's GRO demanding full refund
- If rejected — we escalate to Insurance Ombudsman (free, binding order in 90 days)
- If needed — Consumer Forum (original claim + harassment compensation)