Policy mis-selling happens when an insurance agent, advisor, or company deliberately provides false or misleading information to sell a policy that may not suit the customer’s needs or understanding. In India, this is a growing issue — especially in rural areas, among senior citizens, or with people who are not financially literate.

It usually involves hiding key terms, making false promises, or pressuring someone into buying a policy they don’t actually want or need.

Common Examples in India:

1. Fake Loan Promises
   Agents tell people they can get an interest-free loan if they buy an insurance policy. The customer ends up paying lakhs thinking they’ll get a loan — but no loan ever comes. They’re stuck with a policy they didn’t want.

2. Disguised as Fixed Deposit (FD)
   Especially in banks, customers are told to invest in an FD — but are actually sold a life insurance policy without being informed. They only realize it when the policy bond arrives.

3. High Returns Like Mutual Funds
   Agents promise guaranteed returns of 10%–15%, like mutual funds or SIPs, and say the money is liquid. But the product is a long-term insurance plan with lock-in periods and no such returns.

4. Senior Citizens Misled
   Retired people are sold long-term insurance policies with premium terms of 10–15 years, despite their age and no need for life cover. This is not only unethical but often against IRDAI guidelines.

5. Bonus and Maturity Trap
   Scammers say the customer has matured bonuses or pending refunds from old policies and must buy a new policy to claim it. This is a common trick used to loot lakhs from innocent policyholders.

Why It’s a Problem:

• Victims often don’t realize it until it’s too late.

• Policies have long lock-in periods and high cancellation charges.

• Refunds are hard to get without proper legal help.

• The emotional and financial damage can be huge — especially for the elderly and working-class families.

At Insurance Legal Support, we specialize in helping victims of policy mis-selling take the right legal action. Whether you were misled by false promises, tricked into buying a policy you didn’t need, or pressured by agents or banks, our team is here to support you. We guide you in filing formal complaints, drafting strong legal notices, and pushing insurance companies to refund your money. With our experience and commitment, we ensure your voice is heard and justice is delivered.