Mis-selling of investment-linked insurance products

The following is a case study published in OFS Annual report:

Omar alleged that he was misled into purchasing three investment-linked insurance policies. He submitted evidence of the agent’s misconduct during the sales process to the insurer and requested a full premium refund. The insurer, however, declined his request.

Our case manager investigated the claim and found that the insurer’s authorised agent had provided Omar with false and misleading information regarding the product, which led him to purchase three investment-linked insurance policies.

Omar submitted WhatsApp conversations between him and the agent, which clearly showed that the agent had misled him about the policy plan and its features during the sales process. The agent also admitted to forging Omar’s signature on the proposal form and creating an email address different from Omar’s. When the discrepancies regarding the signatures and email address were highlighted to
the agent, he proposed a settlement to which Omar disagreed.

The case manager highlighted their unfair decision to the insurer even though Omar had submitted solid documentary evidence of mis-selling by their agent.

We proposed that the insurer settle the matter amicably by refunding the balance premium amount after deducting the Surrender Value and Guaranteed Cash Payment paid earlier. The insurer agreed and refunded the premium to Omar.