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SELL OF INSURANCE POLICY WITH LOAN EVEN AFTER DECLARING WRONG POLICY


24-Oct-2023 (In Criminal Law)
It is common practice of financial institutions to sell insurance policy with loan with objective to earn additional income rather than securing loan. In a insurance ombudsman case, it was declared by insurance ombudsman that a health insurance policy was wrong sell with mortgage loan and insured should have been sold simple term insurance policy. After such order, can same insurance policy be sold further by insurance company with loan with same financial institute? I know An award can't be challenged by service provider, can service provider ignore such observations/direction of insurance ombudsman? Plz suggest.
Answers (2)

Answer #1
737 votes
hello client its a matter of criminal nature and fraud as well . in your case which you have mentioned here is a serious issue of missrepresantation with client to whom the policy is going yo be sold out. in this matter we need to take appropiate leagal remady to stop it. and put heavy fine to insurance policy.
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Advocate Vishwanath Pratap Singh

Adv. Vishwanath Pratap Singh

LawRato Delhi | 1000+ Answers
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Answer #2
785 votes
Yes I agree with you that it is the common practice of the bank while selling loan that they also sell them terming sure as to the customer however as far as health insurance is concerned they can't do so so if they are adopting such illegal tractors the same is challengeable and you can file a Public interest litigation in this regard for more details you may contact me thanks
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Advocate Dev Yati

Adv. Dev Yati

LawRatoDelhi | 5+ Answers
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