Mis-Selling Of Life Insurance Policies – Beware!

Mis-sold Insurance Policies

What is mis-selling? As the name suggests, it involves selling products by giving false or partial information.

Wondering how is it relevant to you? It is not restricted to any particular kind of product, rather it has become quite common in the insurance sector, a place which is highly susceptible to mis-selling. Consumers are convinced in such a way that they end up buying an unsuitable product. Many times, the risks are not explained properly and misleading information is given.

Now comes the most important question – how to avoid mis-selling of life insurance policies?

Here are a few tips:

  • Ask for the standard illustration: 
    First and foremost, ask the agent for a standard calculation of the plan. Many agents tend to offer a handwritten calculation, which can be easily manipulated. Hence, it is better to ask an agent specifically for the company’s standard illustration of your selected insurance plan to avoid any misguidance. You can carry out calculations on the company’s website as well.
  • Clarify doubts: 
    Understand what has been included and excluded, the surrender policy, the grace period, etc. Take some time to clarify all your doubts. It is advisable to not buy any plan in a hurry.<>/span
  • Filling the form yourself: 
    Many agents offer to fill the insurance form on your behalf. Later, they would just ask for your signature. This does reduce your work but may lead to ambiguity and confusion. To fully understand the policy, it is better to read all the details and then fill out the form yourself. You should be completely aware of the documents you are going to sign.
  • Insurer Calls: 
    To avoid mis-selling, Shriram Life and various other insurance companies call the consumer to ensure that they have understood all the terms of the plan. Here you can clarify all the doubts. If in case unconvinced, you can return the policy.
  • Evaluate excessively-fascinating products: 
    Some of the agents try to lure with unbelievably charming products. There are high chances that the agent might be offering a few unrealistic rewards. It is better to cross check the product on the website or brochure of the insurance plan.
  • Check the medical requirements: 
    While buying a life insurance plan do check whether there is any requirement for your medical details. It is seen that some agents skip providing medical details as it leads to a delay in buying. However, it is one of the most important parts that directly impact the claim settlement process.<>/span
  • Check the plan name: 
    While filling the form, do check the policy name and confirm whether it is the same which you have selected. There can be many plans under a single category, each with their specific benefits and clauses. Thus, make sure that you have checked the name, in order to avoid any confusion.


For more details on risk factors, terms, and conditions please read the sales brochure carefully before concluding a sale.  

*Tax Benefits:  
Tax benefits are as per Income Tax Laws & are subject to change from time to time. Please consult your Tax advisor for details.  
You are eligible for Income Tax benefits/exemptions as per the applicable income tax laws in India, which are subject to change from time to time.

IRDAI Regn No: 128  
CIN No : U66010TG2005PLC045616 of the Company

The Trade Logo displayed above belongs to Shriram Value Services Limited (“SVS”) and used by Shriram Life Insurance Company Limited under a License agreement.”


  • IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.