InSURANCE SELLING BEHAVIOR As the economic support to meet the economic loss in a sudden stroke can never be replaced by anything, Insurance is treated as a supportive hand in the ill wills of life, when nobody is beside us.
True Insurance
Author
Australia
David Wright
The positive role of insurance has generated a trust among the customers. People are spending an important section of earning on insurances and have also attained praise worthy support. But nuisance by some insurance companies or insurer, have blotted the name of the insurance industry. Now, people are losing faith and moving to spend on cheap insurance. Many reasons have been posted for the disbelieve spread among people. Some causes are: selling insurance without explaining the terms and conditions. Some of the reviews expressed that add-on insurances are sold with 100 percent bluffing attitude in many cases. The policyholder was unaware of the inclusions and exclusions in the policy. The attractive advertisement with incomplete information, insurance was sold with such terms which don’t suit the customer and his pocket by just putting a tick mark on the questions asked in forms. One of the latest issues which shook the insurance industry was the advertisement, promotion attitude of a company with contradictory information. Nowadays, the ASIC (Australian Securities and Investments Commission) is very vigilant and has implemented the reformations announced by Peter Kell, Deputy Chairman of the ASIC. One of the issues is of the Virgin Money (Australia) which has been penalized to pay $30,600 as penalties. The reason for the charges was the advertisement promoted which featured foul aspects. Three infringement notices were insured, as the company continued to promote a product, with foul service promises on television and online. Each infringement notice carried the penalty of $10,200.
The product which was responsible for the imposition of the penalty was Virgin Money's Quick & Easy direct life insurance product, which was promoted till May 2013 on television and online till March 2014.
The reason specified by ASIC was the misleading representations. The misleading factor involved the process of applying for 'Quick & Easy' and the life insurance coverage, provided under the cover of products. The promotional phrase involved was 'no health or lifestyle questions'. When aspirants tried to fill the form they found that the health and lifestyle questions were asked to be filled like smoking habits. This response became the basis for the insurance company to calculate premiums. Another phrase 'weight is not a factor that affects coverage of the Product', was also questioned as while determining coverage weight could be a relevant factor.
We all know purchasing life insurance is an important decision as it provides
mental
peace
to
an
individual.
People
get
attracted
to
advertisements and even rely on the words, hence it is the responsibility of the company to never manipulate things and maintain transparency. There are various insurance companies in Australia provides different types of insurance plans, so choose a best plan according to your need.
If any customer feel or have suspicion for any act by the insurance industry, it should be informed to the Australian Securities and Investment Commission, as it works in accordance with ASIC Act 2001 consumer protection provisions.