Ten months ago, an insurance agent was pestering Umesh Saha to buy a Ulip. "He told me I won't have to go through medical tests and that it is better to invest before the rules change from 1 September 2010," says the Mumbai-based marketing executive.
The agent was referring to the Irda guidelines on Ulips which would extend the lock-in period of Ulips from three years to five years. What he didn't tell Saha was that under the new rules, the charges on Ulips would be capped, which would bring down his commission.
Though Saha couldn't invest at that time, he found the Ulip interesting. Two months later, in October 2010, he decided to buy the plan. But the agent was singing a different tune by then. The Irda guidelines on Ulips had already come into force and the same person who was gung ho about Ulips a few weeks ago now wanted to sell Saha an endowment plan.
The reason was simple: the agent's commission on Ulips had come down, while endowment plans were still offering lucrative payments. So, even though the returns from the plan were low, the agent pushed it because it earned him more commission.
Such cases of misselling are not uncommon.


Source - economictimes.com

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