Sunday, May 03, 2009

Wrong advice about bonuses

Hi Mr. Tan
I was misled into buying insurance for all these years, thinking that the lump-sum amount paid to insurance will be like fixed deposit, and that once bonuses are declared, the surrender value in the benefit illustration shown will be guaranteed.

I did ask the agent about the guaranteed and non-guaranteed part but the answer was to look at the surrender value shown in the BIPS, which she claimed will be payable to me on surrender.

I have now found out that the terminal bonus and future reversionary bonuses are not guaranteed, which was not advised to me. Please advise me if I got a case against them.

REPLY
It is the duty of the agent to advise you correctly. If you were mis-informed, you should take the following steps:

a) Lodge a complaint to the management of the insurance company, giving facts about the mis-representation by the agent

b) If the insurance company does not give you a satisfactory solution, you can lodge a complaint to FIDREC. Details are in www.fidrec.com.sg. If you need legal or other advise, you should be willing to pay $500 for someone to advice you. I will not be able to look into your complaint, as it takes a lot of my time.
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2 comments:

zhummmeng said...

Sue the insurance agent for non disclosure and misrepresenting the product or complain to MAS.
Agents cannot be let off so easily.Mis-selling and misrepresenting are so rampant nowadays.
It is because MAS is sleeping and not interested to protect consumers against malpractices by agents.
You must take the agent to task and send a strong message to the rest of the insurance agents that the consumers are fighting back.
If you can find a lawyer who can take your case on contingency fee basis it will be good. You can also take your case to FIDREC. it is free.

May 03, 2009 11:33 PM
wyf said...

Is it really advisable to sue? Not sure how much insurance this gentleman has actually bought. I myself surrendered a couple of policies few years ago even before the financial crisis starts. I must say I'm quite lucky. I could get back even lesser $ if I were to surrender now.

May 21, 2009 2:31 PM

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