Avoid mis-selling at banks, research before buying financial product

Rely on a fee-based advisor instead of bank relationship manager for investment advice

The Insurance Regulatory and Development Authority of India (Irdai) has formed a task force to look into various aspects 

of the bancassurance channel, including mis-selling. Until Irdai comes out with concrete measures to curb mis-selling, the onus remains on customers to avoid falling prey to this menace.
 

Common forms of mis-selling
 

A common type of mis-selling happens when a person enters a bank branch for a fixed deposit (FD) or a Public Provident Fund (PPF). Instead, the relationship manager (RM) convinces him to go for an insurance-cum-investment plan, such as a unit linked insurance plan (Ulip) or a traditional plan. “The