Hi Mr. Tan,
Last week, I went to an insurance company to terminate my regular investment link policy. It was only purchased last December and I had considered carefully about the huge financial loss that I will incurr upon closing it. I had decided to close it despite incurring huge losses as I feel that this is in my best interest that I do not have any dealing with this company anymore.
I put up a request through my agent to reduce my monthly premium as I found the premium rather heavy for me as im currently funding my own part time studies. This delay has been dragged for more than 2 months and despite assurance from my agent,i did not receive any official writing from the company either. He told me that his admin dept was having some problems and will take some time to process my application. But I did remember filling up a form when I met him earlier to reduce the premium,he did not give me a copy either, I found it strange that he did not gave me a copy of the application form. I didn't probe much as i trusted him but..
My agent called me up shortly after I terminated my polices, he was agitated and said that I was rash in my decision and did not respect him by informing him beforehand. He wants me to reinstate my policies as my withdraw will affect his promotion and he still assure me that he had submitted my application. I told him that it was taking too long to process my reduction of premium and I do not wish to carry on any dealing with his company anymore. I was disappointed.
I called up the insurance company to check this morning and found out that there was no record of any pending application form from my account to reduce any premiums for the past 4 months. I also asked if there was any manpower shortage for the processing dept for the past few months, the Customer Service officer replied 'No'. He has been lying to me all these while, I thought that he is a responsible agent and is sincere in helping clients to plan for their future. I try to help him initally by introducing my friends to him, lucky they did not buy from him else I will feel guilty.
I paid a total of $X and only got back less than 10%. Can I get his company to compensate me as this is largely due to their agent manipulation. Can I claim for personal disappointment? I also withdraw my CPF OA investment account with this company as I was ready annoyed with them, I lose about $X in total for this account.
Who can I seek to redress my grievences and personal damages? I want to teach this agent a lesson, can I file a complaint against him?
I have written an email to them last night asking them to explain why my application was not processed and asked them for an compensation as this incident was largely due to their incompetence and insincerity. They replied by saying that they will look into this matter and give me a reply soon.
Hope you can give me your advice on this as this is causing much inconvenience and frustation to me
REPLY
I suggest that you write a complaint to the Insurance Department of the Monetary Authority of Singapore. They have a section that is responsible for market conduct, which includes the conduct of insurance agents. MAS will bring this matter officially to the insurance company. Your complaint is likely to be acted on promptly.
There will be more cancellations
ReplyDeleteespecially from consumers who bought those cash back products.
When they wake up to realise that the products don't meet their long term saving needs it becomes a burden. For some who felt for the 'buy one get one free' scam it will be even more stressful. Lapses are inevitable.As you know lapses are highest in the first 2 years and as much as 10%.
The problem with buying these products at roadshows or buying from salesmen your goals are never considered, no planning in other words.Your total financial circumstances are not taken into consideration and your " purchase" might have become a misfit in your overall picture.
This is the result of product pushing and selling. The agents could have used unethical means , pressure, emotional manipulation or gifts or rebates and misrepresentation. It is very common these days to see roadshows mushrooming up every where. Consumers MUST NOT buy financial products at roadshows, especially products which have long term implications. It is NOT to your advantage. You must know the intention of these salesmen and women. Their intention is to sell you something and they would use snake oil approach to trap you.You think they care for your needs and future? These unscrupulous agents are out there to sell for their own
needs and not yours.They see you they see money. As the joke among them is "if you walk on two you are
a jackpot".
For your case you should lodge with MAS.Go the complaint section.
You can see that whatever happens, it will be the customer as the biggest loser. The agent will also lose as his appraisal will be affected. The company still gains in terms of monetary considerations. It is time we examine the conduct of the management of these companies even though the blame is always put on the customer and the agents.
ReplyDeleteAlternatively , you should write to the press to highlight your plight.
ReplyDeleteThis sort of problem you are facing is not uncommon. I am sure many out there have faced this unethical manipulation. This not only helps you but others and brings to attention the regulators of rampant malpractices by insurance agents.
Why is it happening? This is the result of product pushing.
Mr. , I found out the truth. His commission will be clawed back and not his promotion. What promotion?
ReplyDeleteIt is an ILP from ntuc, ID2, right?
I don't know how it was sold to you. He must have misled you or misrepresented this plan.He didn't consider your committment . This is the problem of selling. It leaves too much for abuse. Obviously you were misled. Yes , you should seek redress and get full refund if there was evidence of mis-selling.
This sounds too familiar. I had similar experience last year. My friends and I were disappointed with an agent and we requested to switch agent and also terminate some policies. The agent called up my friend and cried and begged us not to do it becoz that would affect her promotion. She told us to hold our request for 6 months and let her get her promotion first! We also found out the reason for the long delay in processing our request. Apparently the agent told the staff not to process our request until she had spoken to us. That was so absurd! I was furious and filed a complaint with the CEO. The company gave us a lame apology letter one month later. SInce then I decided not to have anything to do with that company anymore but I regretted not lodging a complaint to MAS.
ReplyDeleteNTUC Income has 2 type of Ideal plan.
ReplyDeleteID2 is sold mainly by the commission paid agents, though they are allowed to sell them.
While ID7 is sold by the salaried paid insurance consultants.
Both plans are similar in nature. But the charges are totally different.
ID7 has not advisory fees charges. Whereas ID2 attract advisory charges of 45% of your annualised premiums.
ID2 pays the agent 30% of the annualised premium, while ID7 pays only $250 one time fee to the agent.
Think about it.... Most of NTUC agents are selling ID2 and not ID7.. Anyone know the reason??? Its obvious isn't it... Whichever plan that pays higher commission to them will guarantee the sales. They are not thinking about the customers' interest at heart.
There are thousands who bought ID2 out in the market without knowing that there is a better alternative for them to select...
Becos why??? The agents don't tell them. Which sane person on earth would rather buy a plan with higher charges if they are being offered a similar plan with zero charges???
hi raymond, agent cannot sell ID7, becos if someone buy from mobile agent, there is a one time fee of $250, but if buy through ntuc income business centre, no such fee.
ReplyDeleteagent can sell ID7 only if their customer do not mind to pay extra $250 as comparing to buy direct.
Are insurance salesmen and women ethical? What drives them? Are they driven by this GREAT URGE TO HELP THE CLIENTS? Were they attracted to this vocation because of the nobility of the 'profession'?
ReplyDeleteIf insurance selling is professional, prostitution can be considered professional too.
My observation is a big NO.At least 90% of the insurance agents came into this business to pillage as much out of the clients.They have no intention to help the clients. How to help when they are so poorly trained.What kind of training they got? Training to fool, to lie,to fleece, to cheat? Planning for the cleints?
Some claim to be sincere,caring agents. Are they really sincere when they don't bother to upgrade themselves. How to help the clients? This is really bullshit. They were attracted by the money. Imagine the clerks , retrenched secretaries, receptionists, tour guides, bus and tax drivers remain in their jobs, can they 'earn' so much? Insurance selling is the only job that offers them this opportunity. I say selling because I can see no way they are fit to be called consultants, advisers, planners or any disguised titles
MAS MUST step in to regulate. Don't leave it to the insurance companies. The agents and the company are in cahoot to cheat the consumers.
Hi Vfocus,
ReplyDeleteeven for the one time fee of $250. It is still very much lower compared to the 45% imposed.
Assuming your monthly premium is $100 or $1200 yearly. 45% of $1200 is $540..
The agents are basically unethical and didn't inform the customer of the choices that they have. If they had known, they would have bought the ID7 instead.
Mr Tan, can we lodge a complaint to MAS on this? I am one of them holding onto the ID2 policy bought in December 2007.
Hi raymond, i believe when ntuc income introduce the ID7, it not for consumer to choose between ID2 or ID7.
ReplyDeleteIt a choice between buying from agent or direct.
I do not want to defend the agent, but it unfair to blame them.
Hi vfocus
ReplyDeleteI am not blaming them. But the agents ought to have known that there is such a product in the company.
Instead of offering it to the customer, they choose to sell a higer commission paying product.
There are no ethics at all. And in the 1st place, why is the company having 2 similar products with different charges?
Why are the customers not being informed of the product which has lower sales charges?
NTUC being a co-operative has to be fair to their customer..
Opps, i almost forgotten. They have changed already... Social in Purpose... Commercial in Approach.
The meaning is.... Being social in name only... (with its Co-operative name) But operating like how commercial companies operate...
Read their vision statement. They unashamedly says that they will treat you fairly. What to do. It has happened. Let's move on.
ReplyDelete