Source:TNN, Apr 22, 2010, 05.27am IST
LUCKNOW: In a public interest litigation (PIL) filed with the high court, a lawyer has charged insurance companies of fleecing people of their hard-earned money through unit linked insurance policies (ULIPs).
The PIL comes after the insurance regulatory and development authority (IRDA) allegedly failed to protect the interests of the insured persons despite an order by the Securities and Exchange Board of India (SEBI) issued with the aim to check malpractice by insurance companies. Besides prominent insurance companies, the PIL makes the IRDA also a respondent, charging the regulatory authority of being "most unsympathetic" towards complaints of policy holders with a grievance. In fact, "when it comes to protecting the interests of insurance companies," IRDA "is most proactive", the PIL alleges.
The PIL gives as an example the IRDA order to defy the ban of SEBI and continue selling ULIPs. The PIL claims that the sale of ULIP is in violation of sub-section (11) of section (2) of the insurance Act, 1938 because ULIP contracts are based on share market fluctuations which are not a contract upon human life.
Charging IRDA of being "hand-in-glove" with the insurance companies, the PIL brings to the court's notice certain cases in which insurance companies had duped the insured persons, one a doctor, another a scientist and even a lawyer.
The PIL primarily requests the court to issue an order commanding insurance companies not to sell any ULIPs and IRDA not to approve any new ULIP. The PIL also requests that the Union government institute a committee to thoroughly investigate the fraud committed by private life insurers along with the role of IRDA on complaints against insurance companies.
dear sir,
ReplyDeletei think this is a much delayed PIL somebody should have done it earlier . all banks and insurance companies are party to the fraud. They do not tell the client the small print and whenever we complain they say that nothing can be done .
This is because we trust banks o do the right thing for their clients - in my case i was cheated by ABN AMRO bank Financial advisor.in mangalore .
I was misinformed and cheated when I got one from Birla Sun Life Insurance Dream Plan which was actually a ulip and I discovered the same after a few months of taking the policy.... Premium of Rs 30000 p.a and it goes down......I was never looking for such financial product, Its pure cheating and a case of fraud...I informed them about the scam and eventually figured out that they all are a part of it...I wonder why Birla had to start cheating and robbing peole of their hard earned money...are they so short of funds??? In such a scenario they should actually opt for begging - a much more noble profession than running scams...Its such a shame on the name of Birlas
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