Kathmandu. The tendency of insurance agents associated with life insurance companies to post videos on social networks using advertisement-style words like discounts, offers instead of informing the public about the sale of insurance policies, has increased.
Old, experienced and well-known agents associated with the top life insurance companies have been found involved in such activities. Some videos found by Insurance Khabar on social networks Facebook and TikTok have misleading words like discount offer and discount on insurance premium ranging from 10 percent to 45 percent.
Selling insurance policies by misleading the public by using terms like ‘discount’ and ‘offer’ by an agent against the business code of conduct is tantamount to fraud.
Most of the agents found on social media are found to be directly focused on publicizing their company’s insurance policy rather than making the public aware about the insurance, making them aware of the importance, technical aspects, claims, insurance loans, advance payment, living benefits, premiums etc. This has forced the general public to take insurance without ever understanding it.
Here’s a look at the words mentioned in the misleading propaganda content found on social media:
Reputed senior agents are trying to mislead: Discount Offer, you will get a discount of Rs 15 lakh on life insurance of Rs 1 crore!
Another agent can be heard saying: 10 TAG_OPEN_em_30% to 45% discount on insurance premiums for Golden Insurance!
Another agent can be heard posting a video on his TikTok account from his office: } For 10 years of insurance, only 4 years installments have to be paid, the annual installment will be Rs 125,000. You will also get a bonus of Rs 9,20,000 after 10 years. There is a risk of Rs 20 lakh.
The agent has given misleading information that the installment has to be paid only for 4 years. She has mentioned that the money back i.e. the amount of advance payment will be used in the installment of the insurance premium in a way that the general public does not understand. In this regard, she has not clearly stated that the sum insured will be used to pay the installment.
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As shown in the image here, the information that the amount of the advance payment to the insured will be adjusted in the annual premium installment from the third installment is not included anywhere in the video of Tiktok. The total investment is advertised as Rs 20 lakh insurance for Rs 9 lakh.
The insurance agent’s code of conduct states that any ‘inducement of the insured’ is mentioned in the list of things that an agent should not do. Despite this provision, the Nepal Insurance Authority has not been able to control the tendency of selling insurance policies by luring the policyholders.
Om KC, president of the Professional Insurance Agents Association, said that they have been drawing the attention of the Insurance Authority to the unfair publicity of insurance products by some agents. “We have been saying that the authority should take appropriate steps to stop such activities and protect the insured from fraud. ’
KC said that the association has been asking the agents from time to time to be honest about their profession and inform the insured about the insurance products in the right way. “On behalf of the association, we are trying to stop the sale of insurance policies in a wrong way. The authority also needs to warn the agents to sell the insurance products in a regulatory manner. Companies need to work in the interest of the insured rather than focusing on the business. ’
