R Venkataraman, co-promoter and managing director of India Infoline (holding company of India Infoline Insurance Brokers) said the sector had seen a large number of complaints of mis-selling of policies.
“Now, since we (will) have a video recording that will be stored in the cloud and can be accessed anytime, we can verify the client’s claims,” he said.
In 2012-13, there were 341,012 registered life insurance complaints, compared with 309,613 for 2011-12. According to the annual booklet of the Insurance Regulatory and Development Authority’s consumer affairs department, the number of non-life complaints saw a drop in this period. There were 78,927 non-life complaints in FY13, compared to 93,155 in FY12.
Mis-selling broadly means unfair or fraudulent practices in soliciting or selling policies not sought by a customer, or when a customer feels the policy sold to him is different from what was promised.
The company initiative involves mandatory video recording of the sales agent interaction with the customer, while selling any insurance product, by a central IIFL team. Every sales manager is to be given a GPS-enabled video-call tablet. Once a lead is generated, the sales person goes to the customer and does a video conference with an IIFL team, which records the process of sale and checks if the customer understands what the product is and what the salesperson is telling him.
Once the sale is done, the video recorded would be uploaded into an advanced cloud platform, retrievable at will. The GPS movement is also marked, to reconfirm the address of the customer.
Insurance companies say they've also begun other efforts ti check mis-selling. These include 'welcome calls' and 'mystery shopping' to randomly contact agents on policy sales, to check if wrong means are used to push a product. Agents are also being trained on need-based selling.