What is Mis-Selling in Insurance?
Mis-selling happens when an insurance policy is sold to a customer through false promises, incomplete information, or misleading advice. It occurs when the buyer is not made fully aware of the policy’s terms, benefits, exclusions, or suitability for their actual needs.
In simple words — mis-selling means selling the wrong policy to the wrong person for the wrong reasons.
Common Examples of Mis-Selling
- Selling a long-term policyas a short-term investment.
- Hiding or misrepresenting exclusions and conditions.
- Forcing customers to buy policies to get loans or other financial products.
- Selling a policy unsuitable for the customer’s income, age, or purpose.
- Promising unrealistic returns or guaranteed bonusesthat don’t exist.
FAQs on Mis-Selling in Insurance – by Insurance Nidaan
Mis-selling occurs when an insurance policy is sold to a customer with false information, hidden terms, or misleading advice. It means the product sold does not match the customer’s real needs or expectations.
You may be a victim of mis-selling if:
You were promised returns or benefits not mentioned in the policy documents.
You were not informed about policy exclusions or lock-in periods.
The policy was sold as a “short-term investment” or “tax-saving plan.”
You were pressured to buy insurance with your loan, credit card, or investment.
If you suspect mis-selling, do not surrender or cancel immediately.
Reach out to Insurance Nidaan with your policy details. Our experts will review your documents, identify the issue, and guide you on how to raise a formal complaint or request a resolution from the insurer.
Yes, in many cases, policyholders can recover their money if mis-selling is proven. Refunds or policy cancellations depend on factors such as the policy type, insurer’s terms, and timeline of the complaint. Insurance Nidaan helps you prepare your case and communicate with the insurer effectively.
At Insurance Nidaan, we:
- Review your insurance documents.
- Identify the nature of mis-selling.
- Help you draft and submit a complaint to the insurer or ombudsman.
- Guide you throughout the resolution process until closure.
Our goal is to ensure fair treatment and rightful compensation for every policyholder.
The resolution time may vary depending on the case complexity and insurer’s response — usually ranging from 15 to 60 working days. Our team follows up regularly to ensure timely updates and closure.
Ideally, a complaint should be raised within 3 years of discovering the mis-selling. However, exceptions can apply if you were unaware of the issue earlier — our team can help assess your case validity.
