February 6, 2013

How much you believe your advisers?

How much you really believe your advisers, agents or financial planners in sharing your documents? Lot of them really don’t care. Without any caution you share the documents whatever your agents ask for. Recent incident of Malleshwaram LIC branch of Bangalore may be an eye opener for all.

Let me share about this financial irregularity. This incident was recently unearthed by Bangalore Police. Agent is around 60 yrs old guy who used the wonderful trick of using his customer’s data for his own benefit. He used to create all false documents need for issuing policy. Only document he need from investors is passport size photo. If he got any passport size photo then he used to create other documents easily in fake names and submit proposal in LIC.  After issue of policy, he usually waits for 5 years. Reason for 5 year waiting is again one more intelligent trick he used. LIC do thorough research before paying any claim amount for claims which are of 3 years or less. Such type short period claims are called as an early claims. For more than 5 years policies LIC depends on the documents which are mandatory for any claim settlement (except in rare case, where they do in depth review). So using this knowledge, he used to submit the death claim by producing false death certificate.

He created such dummy policies in the name of his wife and daughter too. For all these irregularities, supportive hand was one more LIC agent, who to all your surprise is the Chairman Club Member (this is the heighest reward given to any agent by LIC). So with the help  of this senior agent he used to settle any issue raised in LIC office. This irregularity as of now is to the tune of 1.4 crore.

We may also blame LIC officials too for such apathy. This irregularity came into picture when one received the letter from LIC stating to share bank details for the credit of his own death claim amount 🙂 We can even doubt few officials too for such irregularity. You may not know, but in reality, person who brings highest business is king in LIC office. Let them respect as he works hard, but supporting in unofficial way of business is really a dangerous act.

What we can learn from such irregularities?

1) Share the documents carefully while investing.

2)  Ask questions until you get clarified by the motive of agents.

3) Never share unnecessary documents which are not relevant to your investments.

4) If something left with agents then ask him to give them back.

5) It is always better to go through informative page of any product to understand the documents need to invest.

4 Comments

  1. Good one Basa…

    Reply
    • I really surprised with your comment Srikanth 🙂 Pleasure to see your comments on my blog.

      Reply
  2. point well taken Basu…thanks.

    Reply
    • Thanks Abhi 🙂

      Reply

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